Financial Accounting 2 LO3: Financial statements for different organisations | IFA Direct

Learning Outcome 3 of Financial Accounting 2 (T/650/9637), Level 4 Unit 2 of the ATHE Level 4 Extended Diploma in Accounting, taught by UK Versity for learners on the IFA Direct programme. LO3: Can prepare financial reporting statements for different types of organisation. This learning outcome shows you how to prepare financial statements. You will value and depreciate non-current assets, work out net book value and disposals, make period-end adjustments, and prepare statements of profit or loss and financial position for a sole trader and a limited company. You will then analyse the parts of the statements. Assessment criteria covered: 3.1: Describe the treatment of non-current assets in financial reporting statements 3.2: Prepare financial reporting statements for different types of organisation 3M1: Analyse the components of financial statements Chapters 0:00 LO3 overview, aim and assessment criteria 0:33 Session roadmap 1:01 Accounting concepts behind the figures 2:03 Valuing non-current assets 2:56 Example: what counts as the cost of an asset? 3:48 What depreciation is and why we charge it 4:36 Straight-line depreciation: a delivery van 5:27 Reducing balance depreciation: the same van 6:16 Example: the method changes reported profit 7:12 Disposal of a non-current asset: profit or loss 8:11 Valuing closing inventory: lower of cost and NRV 9:28 Irrecoverable debts and the allowance for doubtful 10:19 Accruals and prepayments 11:10 Which standard covers which topic? 12:29 The main elements of annual and published accounts 13:22 Sole trader: trial balance and adjustments 14:10 Sole trader: statement of profit or loss 15:19 Sole trader: statement of financial position 16:19 Limited company: trial balance and adjustments 17:12 Limited company: statement of profit or loss 18:20 Limited company: statement of financial position 19:23 Example: who reads the annual report? 20:13 Sole trader, partnership and limited company compared 21:06 Analysing the components: the sole trader statements 22:08 What Pass, Merit and Distinction look like 22:55 Key terms 23:13 Activity: choose a depreciation method 23:49 Check your understanding 24:25 Summary 25:16 Plenary: further reading and resources 25:54 Plenary Watch the full IFA Direct playlist on the UK Versity channel:    / @ukversity   Study accounting online with UK Versity: https://www.ukversity.co.uk Course enquiries: admin@ukversity.co.uk #IFADirect #ATHE #Accounting #UKVersity #FinancialAccounting2 #AccountingStudents UK Versity disclaimer: This video is UK Versity teaching material for learners on the ATHE Level 4 Extended Diploma in Accounting, studied with UK Versity on the IFA Direct programme. UK Versity is an ATHE approved centre; the video is produced by UK Versity and is not issued or endorsed by ATHE or the Institute of Financial Accountants. It is for study only and is not legal, tax, financial or professional advice. Organisation names are used for educational comment only. Figures and rules are correct at the time of recording; always check current guidance and your assignment brief. © UK Versity Online Limited. All rights reserved. COPYRIGHT NOTICE: All content in this video is the exclusive intellectual property of UK Versity Online. This video, in whole or in part, may not be copied, reproduced, distributed, uploaded to any third-party platform, embedded, or integrated into any website, application, or learning management system without the prior written permission of UK Versity Online and the payment of applicable royalties. Unauthorised use, reproduction, or distribution of this content constitutes an infringement of UK Versity's intellectual property rights and will be subject to legal action under applicable UK and international copyright law. For licensing or permissions enquiries, contact: info@ukversity.co.uk