Stakeholder and regulatory environment

© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd.

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Accounting• Why

• Fundamental

– Prudence

– True and fair view

• Terms

– Reference period

– Statutory compliance

© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 2

Annual accounts

• Companies act requirement

• Auditors

– Internal

– External

• Accounting standards

© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 3

UK accounting standards

• SSAP9

– Time scales

– Work in progress

• Assessment

– Turnover

– Attributable profit

– Asset Value© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 4

Problems of time

© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 5

Management reports• Purpose

– Planned

– Actual

– Variance

• Inform

– Balance sheet

– Profit and loss statement

– Cash flow statement

© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 6

Other stakeholders• HM Revenue and Customs

– Tax return

– Employer Annual return

– VAT return

• Lenders

– Covenants

• Affirmative

• Negative

© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 7

Annual accounts

• Operating Statement• Director's report• Profit and loss account• Balance sheet• Movement of funds statement• Auditor's report• Notes© 2013 Andrew Ross and Peter Williams. Published 2013 by John Wiley & Sons, Ltd. 8