AD) ENTRIES (ca3) @ Pisce! yede = Asie (365 oy Glenda pets eh ef ”) when companies cecogrice cevenves cad perform senntes expenses when incurred C istlend_ of when are. pail) \FQS CASH Basis Revenves when cash ceceived | Expenses shea ensh is: anid r ne) IFRS | Revenue recorpition = cevtove. cesoyoned jAeind Ahe_oemvnbing Atel of Fhe gerhoge nace efor sinwice, [grou goal Exponse cecognites ettons malt to geen cevenve (apdily sectising diliveg, ebbHes,...) Aadjsting, ents = ensvre Hil) peoqnition princigles re Gllowed r —praparce financial shalewent ot the tad of the peeivd Income Saierntal ond Stultmant of Finemcol esition = Regie for events ack esorded daily Soma cosh ort pel ceconled ‘dicinn, Waa porto) a 4. FRePaismenreuses = expinses paid hefoce the use/coniume of iF 2. Uwearnenmnevenvess = cosh received before Hu performance it Seevices 3, decmvenmReveuves, = 5 secviak pethormed but ahah not received yot 4, decmmesmexequcen = exprnics incured bub nob paid ye 4. (PREIS = cosh; Haat expire edly with time, (eent /rasurmnce) 2° vse (svgabes) r before -cadjusemant = cssets ore over stotted and expenses ace undeestoted Reaisreariow : | Expense. adj. valve. JT l e (initial vale Less Bal wad Asset od, value Gureties end of He eeciod (wot whin used) oGORACGo Inserance paid in advonce Wetuse ASSEr Le pregnid insurance | Fimoncinl Skyfeotd dale: lesuroince Expense cost goed Feepedd Insurtace, cost period(BefRewaTION = for equetiemt, ditribie amount over He pértod Allocation coneeet ja He pacivd which i vied Recusranrion! | Depectinn exotnse. ods vale Bee. depreciation ~ Equiement adj vale EQUIPHeNr NOT ToucHED SiRECTLY wha Iservice_js Reawreaiow > Uneorndl sevice cevene. vale. male @ Seevice ceverve yoke, ‘whe, outs cash 3 ® ReassTenrion + Cust i vale (Cates Marc) Uneccnal sueite. seven vale 3, CEeRREVENEER - laieoanlahenimenspenaaintavssoesmaalesiaied ReqistaaTion. | Accoval receivable. Cascat) valve + Stevie revenve (ewes) velee 4, CRORES = 5 Retibreaiow | hulertsh eypense_feguises) | valve fi Inlerest paysble Clnbilihey) valve SHORTEN = cey/strslion For days belwete “Goymtnt sclory day” and ep of Vox emonth | (Ge 23-34 Cedebec) peepee oud) Wages eopeest vole LP Solores gall Ways page vale -fayna of Hplone | seasrearion 4 Sulniey ond er ear vala Lr Selacis ond Wane Oyrse | wale Gh value Chet) ApS eumies — Be Not Inveive CASH each onky has effec: on ous Statement of Famacial Gosition secovel andl ome Income Stolement account f dg i ; I to Income Skalemeat = Ab) TRIAL BALANCE a i P Be B-Be SareesClosing eurRies (oie) ©- Temgorory accounts | [evosee] Reemenent accovrts [nor cusep 1 ~All revenses mccouats AI oaseks ecceounts ~ All expenses accounts All abilities necovats za T Dividends T = Equity 1 - “Clasma evities = recognide in the ledges treinsier of a a _ NET _INCCHE ond DivDENDdS fe RETAINED EARNILGS Produce 0 BaLauce in Hu Teneanaed AccouNTS Sotante nk gost elasing orhits [al he [Om ce nie enio> — Service Revenue, aan" et tt tt “Natoma Summocy Tatehat Shemp OT Bend Breeden PETC atone Scere Tat IClakeTetofat ScbwPaed _(b Rekuined evenings Peg PRE Prt t f r pert | Rayatdledediogs r f 4 “" Galea Y Ces iv to Rebel encnings “Actoumrivg Cre ann ft E 4. Proaiyze Transachens 2. SJoumnalyae Teomsachons 3. Post 4o Ledger 1. Pepove. Trial Bealunce, SF. Journalite ond past ad enlies 6. Pregeve. adj. Teisl Balance: 7. Prepore Finwncil Seleménls 5. Jouraalite ond gost chong Obie 9, Segoe & cosh clesy Tol Balance CLASSIFIED STATEHEMT OF FINANCIAL. POSITION Infongille Assets Equily Fropicly ; Plant & Equiement Non-CGrrent | Lica Lory, Term lavestments Grrent Liabil hes Corrent Assets.Heeciavoise Orerarions (CHS) Income measurement Saves Revenve — Zex—» Cost oF Goons Soin 2 Gross Profit, Geoss Prorr ao Oreeating Exrevses = Net |ucone /Loss Baginsig, Inventory | Pe {a Ending, Inventory i shin CoM Gib Rrdaded CUSIP ET TTL LL CE Car lof Good SoH Roseeruan Systen Le Teateled seeped oF cast ot leach inventory prchase pad! sale Lo Std Tabet on hand —eanbingovsly. i Ly Gost of Goods sold’ deermined everplina os swe cceuts Ruataicl Sistah t i La Calesledion, Catt of Coad Sold 2 Boplniny Investoy +f } [Rpchases, nek = Gods avovable for sale ~ Eling endo = Gest oF Geops su Porchose Invoice Retisraarion 2 Inventory moe Account Rayesble ma Fret Costs Le Buyer pays if the derms oe FOB Swirtné Pow Sollee pays if the dems cure FOB DestiNaTION = thee ore “CREATING ExPauses™ Feelyht- Out | Delivery expanse Rerceaser DISSATISFIED 4 Puscuase ReruRy = celurn good for credit 2 Prrcinse auowauce > keep merchoadise., with o discou From the salen A Accounts Payable ox Javentooy dor 8 Accounts Royale vx a LL Cash woe a { Be KK = Discouwr Lyreans |SINWeNTORIES (owe) Perrervan syste Pegionic Sysren = Check ocereaty of inventory cecords OL Determine lavenbty on head ~ Delecnine omasel of inventory lest _ Delerminn Cott of Good Sold oF the pence Gods iy tramst f : ~ Reechased geeds act yee seceived Incl Ps bette by Toms cE le G (Seid goods»: net yt aalieted ty FoR, Shining Point (Buyer pays) > Chaves Pass when Gexrriec’ ccteeis the sped f veraae Cost Cast ot Ha covliest goods tutchosel for [GoGo Cabot eed aint Be Parallels echeal_ehysico! How | f Urvettery od Neb bean ore hat wth io Lene cme Tones _-Efrcers oF imvevrory esaors t Pipe Fadl to coun oanaler egal Pe dee to. dretnatt Merms Biro: iq Income Stel. ennd. Shuts of Finemedel Resthion REcIMANG INVEWORY + OST OF Goode SOLD —- ENDING INVEMORY = COST OF COEDS SOLD PuRcHasen 1 a [ “nilecstedes Gesiwvmc, Inventory GOs? OF que Sous unlersketed | ver icone. overstolect “puarslades Geaimiva, inventory s overstated wT Understobed oalustedes eupiva —iavewecy w ovecsteded » uatlershated ovecsiodes enna invintucy " untecstedted . overstated Also with ewes , Over two wctouoting perads Tele mh income, will become correct The Second gesiod rns x coves cHed on Hut previous, correcta thi enor cust oF aups Sous | Inwenrorr Tenover AVERAGE NveNTORYACCOUNTING FOR RECEIVABLES — (cH8) Accounts Receivebles = accouats that result trom sole of youd: ead. services Noks Receivables = wrillta (promists Loe tamounts +o be ceceived with jalerests Ohher Receivables + nonbrede ceceiverbles (ialerest ,lenns., income foes refuadeble,...) Accovals Receivables Lida He IS Lotad Tet eos | cunnent Asser | Volied of wer eeacianare vatve UNCOLECTIBLE ACCOUNTS ReceivaLe = possibillly of accounts not being collected lasses eeconded as Bud Debt Expense [Une Dinger Waire-OFF Heron (net IFRS) I Registration + Bod Debt Expense xx | a Diercsce 6 | Accousts Raceivables wx = cet Balen ys Daten, I |Z eshmatoe tn! AliowAuce HETHeD abate — Eskimo oncollectble accounts ($1) eit the end of Ae pero Bet A Re i Registration Esrimarion ; Bod Debl Expease Saco _Allowenee, for Doublful Aecouats pe ia Registration waure-o7e 1 Allewenee for Baby Accounts om Becovat Receivables xe ~ AffRcks only Stollement of Finuncial Position — Reduces the Allowance em Accovats Receivables — Gash realizable valve cemreia the Seime as ia the eshmehon 5 €Ffech ot tele | af Flawed. Position Before Weile- CFF ‘Af ler Write Ges ACC RECEIVABLE 2e0'ovo Ase Seo AULOWANCE D22uT, ACC, Axoos. CASH ReaueAgle value AESTOCS™ “ask eve Reyishation Recovers | Reverse Weite-Off > Accorvats Receivisble. <> Allowsate for Dovbtfl Accounts Ke Get Invoin bact 2 Cash xn Accounts Receivable xfon RecoawieIng Mor + HI HtPLANT ASSETS, IPARaW Resoveres’ INTANaIBLE ASSETS (oH 8) PPopact, ash, Gjuprer! LGosts = all exgoadihvres necessary to ccguirt on catah ound make it rtody Le cash pice cling deri les, Broken! commision , ratty Hones. nd bens Acaviae Laud inewowe exrenoiruaes, — Leind x - Cash ek Lau lHenovenents = sleucural additions made to Lend (with Vnited Wife) (driveways, paskialeds , Reaies ou) TH deprecistes over He fmt purchetse price, clasing, tosis , commissions | cenodaliay ;eteleriag, e2Rerc 0g Lakonbract pice , payment Res, buildise, permits , excnves Equienens = oll costs for acquining, equipminl ond mate it sendy cosh puchase pce, Sules tomes, Freight changes, beet, essombling piashelliag, esting Inacy) Recisrearion exanne + Equement | g2e'oce [ L Licese Guse do'eo [ i TT Peepaid Insure, Bova I Gash i —Uss'ev0 CORBWARY REPAIRS = muinbeia operating elhulncy [a TRatidenbel bed palate |Bicpehse [| bee Gash ee Apoirious % (teoveneurs = incense. operatty, efticiony /eapeethy. ct o plant osah Ly Lend. lmprovements wer Gash be DEPRECIATION = qllecedion of cots over Hu useful life /Mor valvortion Lp ifterent facks @osTS | USEFUL Life , ResibUAL VALUE — DEPRECIATION EXPEMSE __p INCOME STATEMENT LR ACLUMULATED DEPRECIATION —— STATEMENT OF FIVANCIAL position (dedvston Plosst Assets) MerHops oF peeeeciaTrow = STRAIGUT UME HETHOD UNITS OF ACTIVITY DECLINING Baranceo} STRAIGHT = LING METHOD = every year depreciate He some omovat of money Lt CoStT = RES. VALUE = DEPR, COST _p DER. COST 1 USEFUL LIFE = ANNUAL DepneciariC Lo retisrearion {Depreciation Exeense. ex Accumulated Depreciorion Equipment ad Durts oF Activity HetHom = bosed on unibt of wchivily Guhece uckivl, & meosyrsble) TLL cost = savace vawe = Seraecinere cost (cipere. cost iter. owns “CLS ere cost UNIT = UNITS OF ACTIVITY 2 AMIUML DEPR, ExPunse. Ly Reaisteanion , — Deereciation Expense. xr ry | Aceamulated Depreciation xb = DEPR. COST 2c UNIT “DECLINING BALANCE MeTHOD = occeleriel wabhod , decrense annual dipreiation over tha yenrs TCLS Rook vawel |») Décrinnia paLaNes RATE > ANWUAL ‘DeMRectArion ExPENE Aegina Cl ; Per Tee years paamian Yeae + laitol valve = Role = Annual Grperse > Aanval Gxpense {AD «n° towns PLANT ASSETS DisPosaL Reaistrariow i Accumuletedl Deprtciont fn re PCH SE aE Equlemeat_ CTT eet FULL ANOUAT (ORIGINAL CoS) UP discardid ay Nec. De. ~ Eq. dom yl Loss do Disposal of Plant Asad xx L Equiemant | xx sai el etaha” Astral p lapeiedet ad spulal oh Qlagatat, [ACN sett @eyse0k vewe _& (4) Peocesns = Gan L = Loss @. GSBevr vawe & (-) PRocens Book VaLue (@r DATE OF DISPOSAL) = Accunvieres DEPRECIATION = cost oF Fass Agel Book valve - proceens = GAIN oc LOSS on Dishasae ve Rayrasscer Q@reGisrearion + oad @ Cash x« os Acc Depr.- yin. > fg Lass on! disposal por Equiement Gibid dal dispofal [1 ol x EquiementINTANGIBLE assers f t : i Recocded as cost, con howe LIMITED LIFE or INDEFINITE LIFE Rhoads, Copy eights , Foachses [iicenses., Trademocks , Ttode Maes, Good wil Rabents Le fegel te of 20 yeoes | LT Capitalize cost ond amorhze over leqed /usefol [ile (ree sheared) | Lean. res “copitedized to Parents accouns Lo Reaisreariow Arortizarion | AmortizeHon Expense > L Palents | x Copyright [ a) Lo despa lide oF life of cvenior +90 yeas ~ | Geile cobs of cacy vision ond dafending, it ‘Bmortized over “userun Liee® which is Beste Yon ite Tegel Wie” “Teedemarks (Kk Teode Names {LETT Le eget groleton foe gears (usemly 29) — Registration may be cenvwed iadebinilely | TTL) Caetaliae aequislhiog vaste Ty — NO AXORTIzATION + Fronehies I Ct la (Froachises with iimiled lige amockzed | fe expense over Yuwie Vite Franchises with volimied lif = wo! Mace 1ON r Goodwill = excess of purchase price er Fair value oF ndt assets = Rescrled when on take business. is gucchosed | per L| No axoeriation Research 2 Develooment Corts | my Costs in Ye cestorch phase ove exeeased when vata Once dechaslogiea! Ceusibilily is achieved, the costs incumed oflte ore capialized +o Déverordanr’ coins | CaPang ble eictel) Analysis 2 Wer. sues, }. Bweraae ToraL assets = ASEIS TUAWOvERNOW CURRENT “LIABILITIES — (Cok 4”) BoNnS CCCCCTEEET = Seeuees Bowes Issuing bonds =) borrowing mosey | | || unseated Boum Bods have to be appre felt ei _ Commemaue @oues p> cod be coverlel in Seees, Face Vave = captak oll scale (esen-) TCALNALe GOWNS a cea be rededmed before mabeeily = dale Fic! peuymend is doe 2 mand rote to detetann aul Atos | Bow PACES ave font as pereatoge of Ha fap taylor ) ee feel -enbles ont whan the cooing sive, se, begs buck bonds ods wong Issued ob FACE VALUE, eeow Face awe , MBOvE FACE vawe Reasreation issue: Cash | : WNT.» Tie. Discouwr oe Prémwn ov Bows | | 4 im a= INTREST t , Bonn Seu eer. - ; ' 7 “Biscpur PH f CE bl CELE {odbc KabHioh lnliotalel Ho ete m enc actell t _ reREST expense 1S increased by ear geriod Ine extente wil exceed ceubuchiel emouat | | S8OOST | 4gv'goo _PREMWH hl Amortization orllocerded to Expose is each petted trees exeense is deceased by each peed wr, eres wil Le Less thon corknalval etount Cash Ge) omovah promise) (40009)“a rh Tt [Reba Bi next || HH [ T Bond § a Lesson Cr kde ot on. snaaid re ot Ya loa T Jit Leer hyCORPORATIONS (ce 22) [ e (ssumvce OF SrAees __p Bonecry = to investors. EQUITY» Share Capitol INDIRECTLY = On invethment beuking Frm Lo Reteatd Garaiags ISSUING PAR VALUE ORDINARY SARRES ~ Reysivoton : | Cash 1 sho Leo shares ca Shove Capital - Ordinary does ald eval 4050 | Cash suv0 lshers|, $: <3 { E Share Coagibal = Ordinacy Asv0 => Por Vole Sh. Cup Ordinary ] Shove. Peetims = Ordinary ooo —= t Shtirinm = Ok < z zu (ae sal Vo-Pe suawes Pei —Regishution Ceush Lig'ove ie bs FL Shavt. Cae: Ord asicvo | Wh assiqonent of sleded alee. 4 no-pur shewes EB Shee Premniem= Ord ASQ09 Fs aa — Cosh Lo figiege { Nok aatiqping|a dled vale. bo ab mO~Rar shares Bhd Coq Ok rare ‘Shows can be isived in enchempe for SERVICES or MON-CAse Aisérs | f Reishi in: Orggaitntin Eee fae 009 ete Cop Orly ja ‘Shoat Premia = Olly 4099 4 Peerenewce Suances Cash As'gue Referred shovehaldecs hove fc:ierily %» EI ‘Share Caratal= Relate! Fobtas HT emcee end TTT Sine Prim -Peakaence ae'ooe J Risfals teat of Liquidation TREASURY SHARES = Curporoben's oa shorts Thal iF hes ceccquiced from shaccholdes bit act cebred cost Hermon, ~ lconkra €Quin accoval TP Debit treasuarisiaacs for geite Quid to qeacquie shaves T Requislion of Tesnser ceduces e@uyry dad. dab led ekadal, Regishokos {Treasury Shouts | |4os ec OT Cosh hee od Pog, Sale Tihs Cosh lagoehs TFreasuty Shared feos | Be var Paobvee GAN e Les) Shere Peenivo= Treosry woos | [gare oF tshaces ABove cost]IEEE SSOSTATEHENT OF CASH FLOWS |) Te asses the af qpurate fle ca Rows Sh pot did and, wad oblations roo alc dae Hata. wer neon qt be “of Preeuly Plo, Tab EE} } Gah Oulflows z Rabel Propsely, Parl, Gauioment “Posten Ioan i a os Tenas bo othe Cy beer HerHob eat Merton " Mer icone lof Iveshweds in deh ar equily a co 3 Case eevenves - Carn extenses, : NET WCCHE + NOU CASH EXPENSES = NOW cAsH eebas | pbaasraeans a ct t “Near EAH PRoW jh. iat eopessts (ar degctcinten) 1 disgodsd of Plat tes) foa-sush etal asseh L \ ra by IAtnustHerTs —PERREGATION EMRE { {08509 dinoced Pe ‘an i ter rePeet GAN on dito Peat ase HAH VAR | Cort weap PAE jaw i Pe onDiReCT_HETHOD ree = wease Ace. UB = aceast itred ver casa oF, Aerivetie z Goh Flow ‘fain wasn Acrmes | Betas boll 1 Gwow) chase. equiement | Ragrous) Disposal plant Atseh Seve | T Wer case iniesrne. Aer Cash Flow from Fiancnia acnvines Isseuce Shoes (endian) Poyant Dividands Cy er Cam FuANNe. Aer Nor INCRENS.