THE INSTITUTE OF CAT L2.1 FINANCIAL ACCOUNTING Study Manual
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- 50
- The Statement of Comprehensive Income
- 52
- The Statement of Financial Position
- 103
- Control Accounts
- 6
- 122
- The Cash Book and Bank reconciliation Statement
- 125
- Bank Reconciliations Questions / Solutions
- 127
- Questions / Solutions
- 133
- Suspense Accounts
- 8
- 134
- Suspense Accounts
- 134
- Example
- 135
- Errors not affecting the Trial Balance
- 135
- Questions / Solutions
- 145
- IAS 1 – Presentation of Financial Statements
- 9
- IAS 8 – Accounting Policies, Changes in Accounting Estimates & Errors
- 11
- 170
- 170
- Accounting Policies
- 171
- Changes in Accounting Policies
- 171
- Disclosure – Change in Accounting Policies
- 172
- Changes in Accounting Estimates
- 172
- Disclosure – Changes in Accounting Estimates
- 172
- Errors
- 173
- Disclosure – Prior Period Errors
- 217
- IAS 17 – Leases
- 18
- 255
- Company Accounts
- 21
- 299
- IAS 7 – Cash Flow Statements
- 23
- 300
- Cash Management
- INTRODUCTION TO THE COURSE
- A. INTRODUCTION
- B. THE OBJECTIVE OF FINANCIAL STATEMENTS
- C. USERS OF FINANCIAL STATEMENTS
- Creditors
- D. STEWARDSHIP AND ECONOMIC DECISIONS
- O. THE ACCOUNTING PROFESSION AND THE ROLE OF THE ACCOUNTANT
- P. INTERNAL AND EXERNAL AUDITORS
- Q. INTERNAL CONTROL SYSTEMS
- Study Unit 2
- Regulatory & Non-Regulatory Framework
- Rwandan Stock Exchange
- Disadvantages of Standards
- True and Fair
- Framework for the Presentation and Preparation of Financial Statements
- The Purpose of the Framework
- Stage 1: Setting the agenda
- Stage 2: Project planning
- Stage 3: Development and publication
- Stage 4: Development and publication of an exposure draft
- Stage 5: Development and publication of an IFRS
- Procedures after an IFRS is issued
- C. THE REGULATORY FRAMEWORK – STATUTORY
- A. BOOKS OF ORIGINAL ENTRY/BOOKS OF PRIME ENTRY/BOOKS OF FIRST ENTRY
- Sales Day Book
- Cash Receipt Book
- Purchases Day Book
- Cheque Payments Book
- B. NOMINAL LEDGER
- C. DOUBLE ENTRY
- D. THE ACCOUNTING EQUATION
- E. THE STATEMENT OF COMPREHENSIVE INCOME
- Statement of Comprehensive Income for year ended 31st December, 20X0
- EXERCISE: PLB LIMITED
- Non-current Assets
- Current Assets
- Current Liabilities
- Long-Term Liabilities
- Capital
- Effects of incorrect treatment
- EXAMPLE
- Question: MR A. Igwe.
- EXERCISE 1
- EXERCISE 2
- Mr A. Igwe. : Pro Forma Solution
- Mr A. Igwe : Solution
- BSB Ltd: Solution
- Exercise 1: Solution
- PTT Limited: Pro Forma Solution
- A. ACCRUALS AND PREPAYMENTS
- B. QUESTIONS/SOLUTIONS
- B. TRADE RECEIVABLES, BAD DEBTS RECOVERED AND PROVISION FOR BAD DEBTS
- C. OTHER PROVISIONS
- D. PROVISIONS FOR DISCOUNTS ALLOWED
- ___________________________________________________________________________
- D. QUESTIONS/SOLUTIONS
- E. Accounting for VAT
- A. THE CASH BOOK AND BANK RECONCILIATION STATEMENTS
- B. BANK RECONCILIATIONS STATEMENTS QUESTIONS/SOLUTIONS
- C. QUESTIONS/SOLUTIONS
- A. SUSPENSE ACCOUNTS
- B. EXAMPLE
- C. ERRORS NOT AFFECTING THE TRIAL BALANCE
- D. QUESTION/SOLUTION
- E. THE JOURNAL
- F. QUESTIONS/SOLUTIONS
- A. OBJECTIVE
- C. COMPONENTS OF FINANCIAL STATEMENTS
- D. FINANCIAL REVIEW BY MANAGEMENT
- E. STRUCTURE, CONTENT AND REPORTING
- H. EXAMPLE 1 – STATEMENT OF FINANCIAL POSITION
- I. THE STATEMENT OF COMPREHENSIVE INCOME
- J. FUNCTION OF EXPENDITURE METHOD
- A. INTRODUCTION
- B. DEFINITIONS
- C. MEASUREMENT
- D. DISCLOSURE
- E. METHODS OF COSTING
- A. INTRODUCTION
- B. DEFINITIONS
- C. ACCOUNTING POLICIES
- D. CHANGES IN ACCOUNTING POLICIES
- E. DISCLOSURE – CHANGES IN ACCOUNTING POLICY
- F. CHANGES IN ACCOUNTING ESTIMATES
- G. DISCLOSURE – CHANGES IN ACCOUNTING ESTIMATES
- H. ERRORS
- I. DISCLOSURE OF PRIOR PERIOD ERRORS
- A. OBJECTIVE
- B. DEFINITIONS
- C. RECOGNITION AND MEASUREMENT
- D. DIVIDENDS
- E. GOING CONCERN
- F. DISCLOSURE
- A. OBJECTIVE
- B. DEFINITIONS
- C. DEPRECIATION
- D. ACCOUNTING FOR DEPRECIATION
- E. DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT
- G. RECOGNITION AND MEASUREMENT
- H. DISCLOSURE
- I. EXAMPLES
- Reducing Balance
- Straight Line Method
- Solution – Question 2
- 3,000
- 3,000
- COST
- (300)
- (300)
- DEPRECIATION Y/E 31.12.X0
- 2,700
- 2,700
- NET BOOK VALUE 31.12.X0
- (270)
- (300)
- DEPRECIATION Y/E 31.12.X1
- 2,430
- 2,400
- NET BOOK VALUE 31.12.X1
- (243)
- (300)
- DEPRECIATION Y/E 31.12.X2
- 2,187
- 2,100
- NET BOOK VALUE 31.12.X2
- (219)
- (300)
- DEPRECIATION Y/E 31.12.X3
- 1,968
- 1,800
- NET BOOK VALUE 31.12.X3
- (196)
- (300)
- DEPRECIATION Y/E 31.12.X4
- 1,772
- 1,500
- NET BOOK VALUE 31.12.X4
- Reducing Balance
- Straight Line Method
- 1,200
- 1,200
- PROCEEDS
- (1,772)
- (1,500)
- NET BOOK VALUE
- (572)
- (300)
- PROFIT/(LOSS) ON DISPOSAL
- A. OBJECTIVE
- B. DEFINITIONS
- C. RECOGNITION AND MEASUREMENT
- D. SALE OF GOODS
- F. INTEREST, ROYALTIES AND DIVIDENDS
- G. DISCLOSURE
- A. OBJECTIVE
- B. BASIC CONCEPTS
- C. DEFINITIONS
- D. TYPES OF GRANT AVAILABLE
- E. ACCOUNTING TREATMENT
- F. DISCLOSURE
- G. REPAYMENT OF GOVERNMENT GRANTS
- H. GRANT RECOGNITION
- A. OBJECTIVE
- B. DEFINITIONS
- C. RECOGNITION
- D. MEASUREMENT
- E. CHANGES IN PROVISIONS
- F. USES OF PROVISIONS
- G. APPLICATIONOF THE RECOGNITION AND MEASUREMENT RULES
- I. EXAMPLES - RECOGNITION
- A. OBJECTIVE
- B. DEFINITION
- C. RECOGNITION AND PRESENTATION
- D. DISCLOSURE
- IAS 12 requires the following disclosures:
- A. OBJECTIVE
- B. CLASSIFICATION OF LEASES
- C. ACCOUNTING BY LESSEES
- D. DISCLOSURE: LESSEES – FINANCE LEASE
- E. DISCLOSURES: LESSEES – OPERATING LEASE
- A. PREPARING FINANCIAL STATEMENTS FOR DIFFERENT FORMS OF BUSINESS ENTITY
- B. SOLE TRADER ACCOUNTS - INTRODUCTION
- C. TWO APPROACHES IN PREPARING ACCOUNTS
- D. DOUBLE ENTRY APPROACH
- E. QUESTION/SOLUTION
- F. SINGLE ENTRY APPROACH
- G. QUESTION/SOLUTION
- H. USE OF RATIOS
- Goods cost RWF10,000. Gross Profit Percentage is 20%. What is the selling price?
- Goods sold for RWF10,000. Mark-up is 10%. What is the cost price
- I. QUESTION/SOLUTION
- A. INTRODUCTION – STATEMENT OF COMPREHENSIVE INCOME
- B. DIVIDENDS
- C. TRANSFER TO RESERVE
- D. STATEMENT OF FINANCIAL POSITION
- See Chapter 9 IAS 1 for details on the layout of Statement of Financial Position.
- E. SHARE CAPITAL
- F. CORPORATION TAX / INCOME TAX EXPENSE
- H. ULTRA VIRES
- I. RETURNS, STATUTORY BOOKS, DIRECTORS’ REPORTS, NOTICES, RESOLUTIONS AND ACCOUNTS TO BE FILED
- Directors’ Report
- Disclosure Requirements for Employees
- Disclosure Requirements for Directors’ Emoluments
- A. INTRODUCTION
- B. PREPARATION OF LIMITED COMPANY ACCOUNTS
- C. SAMPLE QUESTION/SOLUTION
- D. QUESTIONS/SOLUTIONS
- A. INCOME AND EXPENDITURE ACCOUNTS INTRODUCTION
- B. SOURCES OF INCOME
- C. EXPENDITURE
- D. STATEMENT OF FINANCIAL POSITION
- E. QUESTION/SOLUTION
- RECEIPTS
- A. CASH MANAGEMENT
- B. OBJECTIVE
- C. OPERATING ACTIVITIES
- D. INVESTING ACTIVITIES
- E. FINANCING ACTIVITIES
- F. REPORTING CASH FLOWS FROM OPERATING ACTIVITIES
- G. WORKED EXAMPLES
- Cash Flow Statement - Indirect Method
- H. DISPOSAL OF A TANGIBLE NET ASSET
- I. TAXATION
- J. DIVIDENDS
- K. WORKED EXAMPLE
- A. GENERAL
- B. RATIOS ON RETURN ON CAPITAL
- C. RATIOS ON PROFITABILITY
- D. RATIOS OF ACTIVITY
- E. RATIOS OF LEVERAGE/GEARING
- F. RATIOS OF LIQUIDITY
- G. LIMITATIONS OF RATIO ANALYSIS
- H. SUMMARY
- I. CHECKLIST