How do Accounts Work?

• Objectives of accounts
• Sources of regulation
• Principles underlying financial reporting: Accruals and matching and prudence

Contents of Published Accounts

• Reading an Annual Report
• Identifying key information
• Understanding the main terms

Recording Transactions

• Why use double entry?

The Financial Statements

• What do financial statements tell you?
• Balance sheet
• Profit and loss account
• Cash flow statements

Linking the Statements Together

• Profit versus cash
• The link between the balance sheet, the profit and loss account and the cash flow statement

Getting to Grips With Accounting Jargon

• Tangible and intangible assets
• Depreciation
• Current assets
• Liabilities
• Shareholders' equity
• Sales, EBIT and net income
• Retained profit
• Operating cash flow