ACCA F3 Class Notes June 2012 Version 1 FINAL At 23rd Jan 2012
ACCA Paper F3
Financial Accounting
Class Notes
June 2012
© Interactive World Wide Limited, January 2012.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Interactive World Wide Limited.
2
www.studyinteractive.org
Contents
PAGE
INTRODUCTION TO THE PAPER
5
CHAPTER 1:
INTRODUCTION TO FINANCIAL REPORTING
7
CHAPTER 2:
FINANCIAL STATEMENTS
11
CHAPTER 3:
DOUBLE ENTRY BOOKKEEPING
17
CHAPTER 4:
INVENTORY
39
CHAPTER 5:
IRRECOVERABLE DEBTS AND ALLOWANCES
47
CHAPTER 6:
NON-CURRENT ASSETS
57
CHAPTER 7:
ACCRUALS AND PREPAYMENTS
75
CHAPTER 8:
SALES TAX
89
CHAPTER 9:
BOOKS OF PRIME ENTRY
93
CHAPTER 10: CONTROL ACCOUNT RECONCILIATIONS
109
CHAPTER 11: CORRECTION OF ERRORS AND SUSPENSE ACCOUNTS
117
CHAPTER 12: BANK RECONCILIATIONS
125
CHAPTER 13: INCOMPLETE RECORDS
133
CHAPTER 14: LIMITED COMPANY ACCOUNTS
143
CHAPTER 15: ACCOUNTING STANDARDS
159
CHAPTER 16: STATEMENTS OF CASH FLOW
167
CHAPTER 17: INTERPRETATION
183
CHAPTER 18: CONSOLIDATED FINANCIAL STATEMENTS
193
CHAPTER 19: CONCEPTUAL AND REGULATORY FRAMEWORK
215
APPENDIX - ANSWERS TO EXAMPLES AND END-OF-CHAPTER QUESTIONS
223
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3
4
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Introduction to the paper www.studyinteractive.org
5
IN T R O D U C T I O N T O T H E P A P E R
AIM OF THE PAPER
The aim of the paper is to develop a knowledge and understanding of the underlying principles and concepts relating to financial accounting and technical proficiency in the use of double-entry accounting techniques including the preparation of basic financial statements.
MAIN CAPABILITIES
On successful completion of this paper candidates should be able to:
A
Explain the context and purpose of financial reporting
B
Define the qualitative characteristics of financial information
C
Financial Accounting
Class Notes
June 2012
© Interactive World Wide Limited, January 2012.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Interactive World Wide Limited.
2
www.studyinteractive.org
Contents
PAGE
INTRODUCTION TO THE PAPER
5
CHAPTER 1:
INTRODUCTION TO FINANCIAL REPORTING
7
CHAPTER 2:
FINANCIAL STATEMENTS
11
CHAPTER 3:
DOUBLE ENTRY BOOKKEEPING
17
CHAPTER 4:
INVENTORY
39
CHAPTER 5:
IRRECOVERABLE DEBTS AND ALLOWANCES
47
CHAPTER 6:
NON-CURRENT ASSETS
57
CHAPTER 7:
ACCRUALS AND PREPAYMENTS
75
CHAPTER 8:
SALES TAX
89
CHAPTER 9:
BOOKS OF PRIME ENTRY
93
CHAPTER 10: CONTROL ACCOUNT RECONCILIATIONS
109
CHAPTER 11: CORRECTION OF ERRORS AND SUSPENSE ACCOUNTS
117
CHAPTER 12: BANK RECONCILIATIONS
125
CHAPTER 13: INCOMPLETE RECORDS
133
CHAPTER 14: LIMITED COMPANY ACCOUNTS
143
CHAPTER 15: ACCOUNTING STANDARDS
159
CHAPTER 16: STATEMENTS OF CASH FLOW
167
CHAPTER 17: INTERPRETATION
183
CHAPTER 18: CONSOLIDATED FINANCIAL STATEMENTS
193
CHAPTER 19: CONCEPTUAL AND REGULATORY FRAMEWORK
215
APPENDIX - ANSWERS TO EXAMPLES AND END-OF-CHAPTER QUESTIONS
223
www.studyinteractive.org
3
4
www.studyinteractive.org
Introduction to the paper www.studyinteractive.org
5
IN T R O D U C T I O N T O T H E P A P E R
AIM OF THE PAPER
The aim of the paper is to develop a knowledge and understanding of the underlying principles and concepts relating to financial accounting and technical proficiency in the use of double-entry accounting techniques including the preparation of basic financial statements.
MAIN CAPABILITIES
On successful completion of this paper candidates should be able to:
A
Explain the context and purpose of financial reporting
B
Define the qualitative characteristics of financial information
C