Accounting

TABLE OF CONTENTS

  • ACCOUNTING

  • GENERAL INFO

  • MODULE I: BOOKKEEPING

    • PART I: ACCOUNTING TREATMENT OF FIXED ASSETS

    • PART II: ACCOUNTING TREATMENT OF LIABILITIES

    • PART III: EVOLUTION OF EQUITY

    • PART IV: UNCERTAINTIES

  • MODULE II: REPORTING AND AUDITING

    • PART I: FINANCIAL REPORTING (ANNUAL ACCOUNTS ANALYSIS)

    • PART II: NON-FINANCIAL REPORTING

    • PART III: AUDITING

  • MODULE III: MANAGEMENT ACCOUNTING

    • PART I: INTRODUCTION

    • PART II: PRODUCT COSTING

    • PART III: DECISION MAKING

    • PART IV: PLANNING AND CONTROL

GENERAL INFO

  • Introduction and importance of accounting

MODULE I: BOOKKEEPING

PART I: ACCOUNTING TREATMENT OF FIXED ASSETS

  • Definition: Fixed assets are assets used sustainably in business operations.

  • Fixed assets include:

    • Intangible fixed assets: Non-physical items (e.g., patents).

    • Tangible fixed assets: Physical items (e.g., machinery, buildings).

    • Financial fixed assets: Long-term investments.

  • Classification based on usage and intention (e.g., transportation vehicles used by a company vs. manufactured inventory vehicles).

PART II: ACCOUNTING TREATMENT OF LIABILITIES

  • Types of liabilities based on duration:

    • Long-term obligations (start with 17): e.g., investment loans, bonds.

    • Short-term obligations (start with 4): e.g., accounts payable.

    • Long-term liabilities maturing within a year: Transferred from the long term to short-term at year-end.

PART III: EVOLUTION OF EQUITY

  • Components of equity in companies:

    • Capital: Funds contributed by owners at inception.

    • Reserves: Retained earnings and profits.

  • Importance of capital maintenance and regulations regarding distribution.

PART IV: UNCERTAINTIES

  • Provisions vs. debts: Provisions are potential liabilities without exact amounts.

  • Types of provisions:

    • pensions, taxes, large repairs, environmental obligations, other risks.

MODULE II: REPORTING AND AUDITING

PART I: FINANCIAL REPORTING (ANNUAL ACCOUNTS ANALYSIS)

  • Structure of annual reports:

    • Balance sheet, income statement, and notes.

  • Reporting requirements for small companies.

PART II: NON-FINANCIAL REPORTING

  • Trends in sustainability and corporate responsibilities.

  • European regulation and deadlines for sustainability reporting.

PART III: AUDITING

  • Role of the auditor in the assurance of financial statements.

  • Types of audit opinions from standard to adverse opinions.

MODULE III: MANAGEMENT ACCOUNTING

PART I: INTRODUCTION

  • Difference between general accounting and management accounting:

    • General accounting for external users; management accounting for internal decision-making.

    • Focus on future-oriented data.

PART II: PRODUCT COSTING

  • Overview of direct costs (materials and labor) vs. indirect costs (overhead).

  • Importance of accurate cost allocation for decision-making.

PART III: DECISION MAKING

  • Analysis methods:

    • Cost-volume-profit analysis for predicting profitability.

    • Importance of contribution margin and break-even analysis.

PART IV: PLANNING AND CONTROL

  • Steps for effective budgeting including strategic and operational plans.

  • Importance of variance analysis in performance reporting.