BU127 Chapter Notes - Chapter 1: Financial Statement, Retained Earnings, International Financial Reporting Standards

• School: WLU
• Department: Business
• Course: BU127
• Professor: Chialin Chen

Document Summary

Four basic financial statements: statement of financial position. Assets, lia(cid:271)ilities a(cid:374)d sha(cid:396)eholde(cid:396)"s e(cid:395)uit(cid:455) of a (cid:272)o(cid:373)pa(cid:374)(cid:455) at a poi(cid:374)t i(cid:374) ti(cid:373)e. Name of entity (the accounting entity itself, not business owners: 2. List assets fi(cid:396)st, the(cid:374) lia(cid:271)ilities, the(cid:374) sha(cid:396)eholde(cid:396)"s e(cid:395)uit(cid:455) Assets: cash, land, plant/equipment, prepayments, inventories, trade receivables. Liabilities: trade payables, short-term borrowings, long-term borrowings. Sha(cid:396)eholde(cid:396)"s e(cid:395)uit(cid:455): contributed capital, retained earnings, other components, statement of comprehensive income. Repo(cid:396)ts (cid:272)ha(cid:374)ge i(cid:374) sha(cid:396)eholde(cid:396)"s e(cid:395)uit(cid:455) e(cid:454)(cid:272)ludi(cid:374)g i(cid:374)(cid:448)est(cid:373)e(cid:374)ts (cid:271)(cid:455) sha(cid:396)eholde(cid:396)s o(cid:396) distribution to shareholders (issuing shares and dividends) 2 parts: statement of earnings, statement of comprehensive income. Revenues - expenses = net earnings + other comprehensive income = comprehensive. Revenues: when goods or services are sold to customers whether or not they"ve been paid for. Expenses: cost of sales/cost of goods sold, depreciation, sales and marketing expenses, distribution expenses, general and administrative expenses, finance costs.