This text provides a detailed approach to financial accounting for advanced readers. The basics like the double-bookkeeping method according to the IFRS should be clear and are extended to topics like equity (diverse classes of shares), debt (primary bonds) and investments (FVTPL, FVOCI, etc.). All these accounting rules are stated and supported by several figures, graphics, and pictures.
Recommended for every middle-class company with a finance department or planning an expansion. Also, underlying concepts of different market (movements) are stated and linked to the related IAS principles. Even though the IFRS is the international standard, the German GAAP or the US GAAP are slightly deviating from it, but due to the progressing globalization, the IFRS approach is more and more accepted within the EU and soon even in Germany. But even now this text provides with enough information about the underlying structure and makes it much easier to understand the German or US methods.
Inhaltsverzeichnis (Table of Contents)
- Where to get information....
- Who is interested in those information..
- Second Lecture: Shareholders Equity.....
- Third Lecture: Liabilities....
- Lecture Four: Short-term Liabilities......
- Lecture Five: Short-term liabilities..
- Sixth Lecture: Internal control: Detecting and avoiding fraud.………………………………
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This text provides a detailed approach to financial accounting for advanced readers, extending the basics of double-bookkeeping according to IFRS to topics such as equity, debt, and investments. It aims to provide a comprehensive understanding of financial statements, including their creation, analysis, and interpretation. The text also explores the underlying concepts of different market movements and their relationship to IAS principles.
- Understanding the creation and interpretation of financial statements.
- Analyzing the impact of different market movements on financial statements.
- Exploring the relationship between IFRS and other accounting standards.
- Examining the role of financial statements in corporate governance and decision-making.
- Understanding the importance of financial transparency and its impact on stakeholders.
Zusammenfassung der Kapitel (Chapter Summaries)
The text begins by discussing the importance of financial statements as a communication tool between companies and stakeholders. It then delves into the various groups interested in financial statements, including shareholders, creditors, employees, managers, suppliers, consumers, and government agencies. The text highlights the role of financial statements in decision-making and risk assessment for each stakeholder group.
The text further examines the annual report, which includes corporate information, analysis and commentaries, other statements or disclosures, financial statements, and notes to the financial statements. It emphasizes the importance of the Letter from the Chairman of the Board of Directors as a key component of the annual report.
Schlüsselwörter (Keywords)
The key terms and concepts covered in this text include financial statements, IFRS, accounting standards, equity, debt, investments, market movements, stakeholders, annual report, corporate information, analysis and commentaries, and financial transparency.
Frequently Asked Questions
What is the importance of IFRS in international accounting?
IFRS (International Financial Reporting Standards) provides a global language for business affairs so that company accounts are understandable and comparable across international boundaries.
Who are the primary stakeholders interested in financial statements?
Key groups include shareholders, creditors, employees, managers, suppliers, and government agencies, each using the data for risk assessment and decision-making.
What are the main components of an annual report?
An annual report typically includes corporate information, management analysis, the financial statements, and detailed notes explaining the accounting methods used.
How do German GAAP and US GAAP differ from IFRS?
While they share core principles, they differ in specific rules regarding valuation and disclosure, though there is a global trend toward accepting IFRS.
What is the role of internal control in financial accounting?
Internal controls are essential for detecting and avoiding fraud, ensuring the accuracy of financial data and the integrity of the reporting process.
- Quote paper
- Mike G. (Author), 2017, Guideline for Financial Statements, Munich, GRIN Verlag, https://www.grin.com/document/366935
