BUSS1030 Lecture Notes - Lecture 12: Financial Statement, Vision Statement, Accounts Payable

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1030
• Professor: All

Document Summary

Corporate objectives, long-term plans & budgets their relationship. Long-term (strategic) plan: defines the general direction of the business over next five or so years. Budget: essentially a financial plan for the short term, usually 12 months, expressed in financial terms, converts long-term plan into an actionable blueprint for the future. Control compelling events to conform to plan. Variances b/w actual outcomes & budgets should be highlighted by accounting info: can be followed by steps to get business back on track towards achieving the budget. Projected financial statements: valuable for developing long-term strategic plans, help managers make informed decisions about future of a business. Projected financial statements may be prepared on the basis of: an optimistic view of likely future events, a pessimistic view of likely future events, a (cid:858)(cid:373)ost likely(cid:859) (cid:448)ie(cid:449) of future e(cid:448)e(cid:374)ts. Assumptions & estimates relating to statement of cash flows include: Levels of working capital: profit, depreciation adjustments/asset disposals, acquisitions of non-current assets, taxation, dividends, capital raised/redeemed.