Career Growth in Accounting & Finance 2024.pptx

Career Growth

1. Career Growth in Accounting & Finance 2024 ERP Solutions BD

2. Basics of Accounting Accounting is the language of business. It is an art of recording all transactions of business and knowing the result of carrying out of the business activity. IAS International Accounting Standards (IAS) are a set of rules for financial statements that were replaced in 2001 by International Financial Reporting Standards (IFRS) and have subsequently been adopted by most major financial markets around the world. Both sets of standards were issued by the International Accounting Standards Board (IASB), an independent body based in London. The United States does not follow IFRS. Instead, the U.S. Securities & Exchange Commission requires public companies in the U.S. to follow Generally Accepted Accounting Standards (GAAP). China and Japan also declined to adopt IFRS.

3. Basics of Accounting IFRS The International Financial Reporting Standards (IFRS) are a set of accounting rules for public companies with the goal of making company financial statements consistent, transparent, and easily comparable around the world. This helps for auditing, tax purposes, and investing . AICPA definition It is the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions, and events which are, in part at least, of financial character, and interpreting the results thereof . Accounting principle These are accounting rules and benchmarks that a company require to follow while reporting financial statements.

4. Here are some GAAP Accrual principle Transactions to be recorded in the period in which they occur irrespective of payment Conservatism principle Record uncertain losses and expenses, but not record uncertain gains . Consistency principle Once a business chooses one accounting method, this method should be used consistently going forward Cost principle Assets should always be recorded at their purchased cost Economic entity principle Business entities should be treated as separate legal and financial entities

5. Here are some GAAP Full disclosure principle All relevant and necessary information for the understanding of a company's financial statements must be included in public company filings Going concern principle This principle assumes that any organization will continue to operate its business for the foreseeable future . Matching principle In accrual accounting, the matching principle instructs that an expense should be reported in the same period in which the corresponding revenue is earned and is associated with accrual accounting and the revenue recognition principle states that revenues should be recorded during the period in which they are earned, regardless of when the transfer of cash occurs.

6. Here are some GAAP Materiality principle Materiality concept in accounting refers to the concept that all the material items should be reported properly in the financial statements. Material items are considered as those items whose inclusion or exclusion results in significant changes in the decision making for the users of business information . Monetary unit principle All transactions or economic events recorded in the accounts of a business should be expressed and measured in monetary terms by a currency . Reliability principle All records and statements must always be accurate and relevant to be useful . Time period principle All business should report their financial statements appropriate to a specific time period.

7. Here are some GAAP Revenue recognition principle The core principle of IFRS 15 is that revenue is recognised when the goods or services are transferred to the customer, at the transaction price. Revenue is recognised in accordance with that core principle by applying a 5-step model. The 5 steps in the revenue recognition process: Identify the contract with a customer. Identify the performance obligations in the contract. Determine the transaction price. Allocate the transaction price. Recognize revenue when the entity satisfies a performance obligation.

8. Basics of Accounting Expenses / Payment ( Dr +) Income/ Receipt (Cr Long Term (over One Year) Long Term ( Over One Year ) Short Term (1-12 Months) Short Term (1-12 Months) Long Term- Over One Year (Over 1 Year) (Balance Sheet- Fixed Assets, Investing Cash Flows) Long Term Over One Year (Balance Sheet-Long Term Liabilities & Equity, Financing cash Flows) Short Term (1-12 Months) (BS- Current Assets, Income Statements-Expenses & Operating Cash Flows) Short Term (1-12 Months) (BS, Short Term Liabilities, income Statement-Revenue & Operating Cash Flows) Transaction Types

9. Preparation of Financial Statements Financial Position It reports the financial position Of the business at a particular point Of birth. Statement Of Financial Position (Balance Sheet) Financial Performance It reports the financial performance business over a period and comprises Revenue & Expenses Statement Of Profit Or Loss and Other Comprehensive Income Owner’s accounts to an organization It reports the amount and sources of changes in equity shareholders investment in the business over a period Statement Of Changes In Equity Statement Of Cash Flows Summary Of Cash In & Out It shows changes in the financial position of business from the perspective of movement of cash into and from business

10. Some Basic Accounting Terms Capital/ Investment Asset- long term and short term Internal & External Liabilities Depreciation and Amortization Payable & Receivable Income & Revenue Inventory in different stages Revenue/Income & Expenses Interest, Charges and Commission Purchases & Sales Cost of Goods Sold (COGS)

11. Some Basic Accounting Terms Overhead Factory/ Production Overhead Office & Administration Overhead Selling Overhead Distribution Overhead Salaries & wages VDS, TDS & Tax Payable Advance and prepayment Loan, Bond and Preferred Stock Cash & Bank

12. IAS 1: Presentation of Financial Statements Subsections Uses Working Implementation Date Financial position Framework for financial statements Requirements for the structure and content of financial statements 2005 Profit or loss and other comprehensive income Comparative information and consistency Changes in equity Cash flows

13. IAS 2: Inventories Subsections Uses Working Implementation Date Measurement - Recognition Accounting for inventories Measure at lower of cost and net realizable value - Recognize cost of inventories as expense when sold 2005 Profit or loss and other comprehensive income Comparative information and consistency Changes in equity Cash flows

14. IAS 7: Statement of Cash Flows Subsections Uses Working Implementation Date Operating activities Reporting cash flows - Classify cash flows into operating, investing, and financing activities 1992 Investing activities - Reconciliation of cash and cash equivalents Financing activities

15. IAS 16: Property, Plant, and Equipment

16. IAS 12: Income Taxes Subsections Uses Working Implementation Date Current tax Accounting for current and deferred tax Recognize current tax liabilities and assets for current and prior periods 1998 Deferred tax Recognize deferred tax liabilities and assets for future tax consequences of temporary differences

17. Thank You Prepared By- Saleh Muhammed Saki Founder & CEO- ERP Solutions BD