lecture-3---accruals---student(專業版)

　　

【正文】 Fundamentals of Accounting Linda Hickson Lecture 3 Accruals and Prepayments 1 Lecture content ? Lectures 1 amp。 2 (Monday) – Introduction to accounting amp。 accounting conventions ? Lecture 3 (Tuesday) Accruals amp。 Prepayments ? Lecture 4 (Wednesday) Irrecoverable Debts and Allowance for Receivables ? Lecture 5 (Thursday) Introduction to Depreciation ? Lecture 6 (Friday) – Wrapup 2 Accounting conventions ? These are the rules guiding the preparation of financial accounts ? They constitute the conceptual framework underpinning the preparation of accounts ? 2 key underlying assumptions (rules) Going Concern and Accrual Basis 3 Going concern ? A business with sufficient demand for its products and sufficient sources of finance to enable it to continue operating for the foreseeable future. ? Application: ? Assets are shown at a value far greater than the value in a closing down sale 4 Accruals (matching) ? Accruals (also known as matching): ? All ine and expenses are recognised in the accounting period in which they are earned/incurred rather than in the accounting period in which cash is received or paid. ? Application: ? A business shows an expense if it has been incurred even if the invoice has not been received 5 Cash Basis vs. Accrual Accounting Recognition Realization Formally recording an economic item or event in the financial statements Collecting cash, generally from the sale of products or services 6 Accruals/Matching – Example (1) ? Gregory’s accounting year ends on 30 June. ? In calendar year 2022 Gregory’s rental payable on premises was $12 000. ? In calendar year 2022 the rental increases substantially to $14 400. ? What is the amount of Gregory’s rental expense for his financial year ended 30 June 2022? 7 Accruals/Matching – Example 1 ? Gregory’s rental for the financial year is $6,000 + $7,200 = $13,200 Calendar Year 2022 $12,000 Calendar Year 2022 $14,400 Accounting year ended 30 June 2022 1 July 2022 31 December 2022 30 June 2022 $6,000 $7,200 8 Extended Example 2 Use Taccounts and a summarised account (as at end 20