ACCT1110 Finacial Reporting and Analysis Lecture 1

ACCT1110 Lecture 1

1. ACCT1110 Financial Reporting and Analysis

2. Course Lecture 1 Part 1 Break Panel event Homework: Lecture 1 Part 2 Today’s lecture 2

3. Textbook 3 Financial Accounting 7 th Edition

4. Course Schedule 4 . Please see the Course Schedule (in the Course Info folder on Blackboard).

5. Online workbook Lecture Study (textbook) Tutorials Consultation Discussion Board Weekly Structure 5

6. Recap Multiple choice questions Demonstration question(s) Questions for you Homework Solutions to questions after the last tutorial for the week Collaborative Tutorial 6

7. 7 Who? Students who: have a disability are neurodivergent (i.e. ADHD/Autism) have a mental health condition have a medical condition have an illness or injury have caring responsibilities Or: are pregnant are experiencing exceptional circumstances are an elite athlete have commitments to religious observance are engaged in defence service Student Access Plans (SAP) and Exam Adjustments (EA) What? Student Access Plans: extension to assignments occasional absences alternative assessment formats placements, pracs , and lab adjustments accessible formatting assistive technology Exam Adjustments: additional examination working time rest breaks use of a computer or a writer ergonomic furniture food, drink, or medication a separate room Other adjustments based on your needs How? Meet with a Student Adviser visit Student Central Building 42 St Lucia Google: UQ Student Adviser contact Student Services [email protected] [phone] Get in touch as soon as possible if you need support for your study. Support can be provided throughout semester. It is important you arrange your SAP or EA as soon as possible. Aim for the first four weeks of semester.

8. Group photo 8

9. Student Employability 9 Please read the information sheet on Blackboard, then scan this QR code.

10. Lecture 1 Part A

11. explain the business context and the need for decision making define accounting , describe the accounting process and define the diverse roles of accountants explain the characteristics of the main forms of business organisation understand the Conceptual Framework and the purpose of financial reporting identify the users of financial reports and describe users’ information needs identify the elements of each of the four main financial statements describe the financial reporting environment explain the accounting assumptions, concepts, principles, qualitative characteristics and constraints underlying financial statements calculate and interpret ratios for analysing an entity’s profitability, liquidity and solvency . Learning Objectives 11 Green = Online workbook Blue = Practice/talk about in lecture Pink = To read

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13. https://apps.elearning.uq.edu.au/poll/99089 A B C Match the above forms of business organisation with a set of characteristics: Shared control, increased skills and resources Simple to set up and maintain control with founder Easier to transfer ownership and raise funds, no personal liability. Lecture Exercise 1 13 Copyright Carlon , S., McAlpine-Mladenovic, R., Palm, C., Mitrione , L., Kirk, N. and Wong, L. (2022) "Financial Accounting - Reporting, Analysis and Decision Making", 7th edition, Wiley Australia ISBN 9780730395294

14. What are some of the financial decisions owners need to make when running a new business? https://padletuq.padlet.org/ACCT1110/Lecture1 Your weekly task 14

15. Break 15

16. Panel Event 16

17. Lecture 1 Part B (Homework) Please listen to the recording on Blackboard

18. A Conceptual framework is a group of ideas or principles used to plan or decide something. It prescribes the basic principles that are to be followed in preparing financial statements It is a coherent system of concepts , which are guidelines to the accounting standards used for financial reporting Conceptual Framework 18

19. Conceptual Framework 19 Copyright Carlon , S., McAlpine-Mladenovic, R., Palm, C., Mitrione , L., Kirk, N. and Wong, L. (2022) "Financial Accounting - Reporting, Analysis and Decision Making", 7th edition, Wiley Australia ISBN 9780730395294

20. Financial Statements 20 Copyright Carlon , S., McAlpine-Mladenovic, R., Palm, C., Mitrione , L., Kirk, N. and Wong, L. (2022) "Financial Accounting - Reporting, Analysis and Decision Making", 7th edition, Wiley Australia ISBN 9780730395294

21. Dominos Game 21

22. Also called the Income Statement Reports the financial performance over a period time. Lists the entity’s income (revenues and gains). Lists the entity’s expenses (including losses). Income - expenses = profit (loss). Statement of Profit or Loss 22 Profit = Income - Expenses

23. Statement of Profit or Loss Copyright 2019 Wiley Australia – 97811119924548/ Carlon /Financial Accounting – Reporting, Analysis and Decision Making, 6E Custom Edition 23 For the month ended 31 October 2022 For the month ended 31 October 2022 1/10/2022 31/10/2022

24. This information relates to Rosie’s Rentals Pty for the year 2022: Retained earnings, 1 January 2022 $90,000 Advertising expense 3,000 Dividends paid during 2022 14,000 Rent expense 20,200 Hire revenue 140,000 Electricity expense 4,800 Wages expense 56,000 Share capital 40,000 Prepare a statement of profit or loss and a calculation of retained earnings for the year ending 31 December 2022. Lecture Exercise 2 24

25. Lecture Exercise 2 Template 25 For the year ended 31 December 2022 For the year ended 31 December 2022

26. Statement of Changes in Equity 26 shareholders Shareholders Equity Dividends to shareholders

27. Statement of Changes in Equity – Dominos Pizza 27

28. Also called the Balance Sheet Reports assets (resources) and claims/obligations to those assets (liabilities and equity) at a specific point in time. Based on the Accounting Equation. Statement of Financial Position 28 Assets = Liabilities + Equity or Assets – Liabilities = Equity

29. Statement of Financial Position 29 Assets = Liabilities + Equity Assets – Liabilities = Equity As at 31 October 2022 As at 31 October 2022

30. Deanna Veale is the bookkeeper for Quality Products Ltd. Deanna has been trying to make the statement of financial position of Quality Products Ltd balance. It is finally balanced, but now she’s not sure it is correct. Prepare a correct statement of financial position using the format Assets-Liabilities = Equity. Lecture Exercise 3 30 As at 30 June 2022

31. Lecture Exercise 3 Template 31 As at 30 June 2022

32. Reports on an entity’s cash inflows and outflows over a period of time. Informs users about what is happening to an entity’s most important resource = CASH. Statement of Cash Flows 32

33. Focuses on cash flows resulting from: Operating activities Investing activities Financing activities Statement of Cash Flows 33 For the month ended 31 October 2022

34. Please read learning objective 1.7 The financial reporting environment Financial Reporting Environment 34

35. Concepts & Principles 35 Copyright Carlon , S., McAlpine-Mladenovic, R., Palm, C., Mitrione , L., Kirk, N. and Wong, L. (2022) "Financial Accounting - Reporting, Analysis and Decision Making", 7th edition, Wiley Australia ISBN 9780730395294

36. Cheong Pty Ltd had three major business transactions during 2022. Merchandise inventory with a cost of $68,000 is reported at its market value of $100,000. The owner of Cheong Pty Ltd, Cheong Kong, purchased a computer for personal use and charged it to his expense account. Cheong Pty Ltd wanted to make its 2022 profit look better, so it added in sales that occurred on the first two days of 2023. In each situation, identify the concept or principle that has been violated, if any, and discuss what should have been done. Lecture Exercise 4 36

37. Online workbook Lecture Study (textbook) Tutorials Consultation Discussion Board Weekly Structure 37

38. explain the business context and the need for decision making define accounting , describe the accounting process and define the diverse roles of accountants explain the characteristics of the main forms of business organisation understand the Conceptual Framework and the purpose of financial reporting identify the users of financial reports and describe users’ information needs identify the elements of each of the four main financial statements describe the financial reporting environment explain the accounting concepts, principles, qualitative characteristics and constraints underlying financial statements calculate and interpret ratios for analysing an entity’s profitability, liquidity and solvency . Learning Objectives 38 Green = Online workbook Blue = Practice/talk about in lecture Pink = To read

39. Next Week 39

40. Debbie Jeffery Contact Lecturer [email protected] [phone] CRICOS 00025B • TEQSA PRV12080