Introduction
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KAMAL MUSTAFA
ACCA (UK), MSC (University of Leicester -UK,
MBA University of Hull –UK, DMS University
of Hull -UK, DEM The Institute of Export - UK
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Financial Reporting And Analysis
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Course Outlines
A conceptual and regulatory framework
Introduction to published accounts
Accounting concepts and policies
Tangible non-current assets
Intangible assets
Impairment of assets
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Financial Reporting And Analysis
Course Outlines
7. Reporting financial performance
8. Leases
9. Substance over form
10. Financial assets and financial liabilities
11. Inventories and construction contracts
12. Provisions, contingent liabilities and
contingent assets
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Financial Reporting And Analysis
Course Outlines
13. EPS
14. Interpretational of financial statements
15. Statement of cash flows
16. Principles of consolidated
17. FS Consolidated
18. SFP Consolidated IS
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Financial Reporting And Analysis
Core areas of the syllabus
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A conceptual framework for financial reporting
A regulatory framework for financial reporting
Financial statements
Business combinations
Analysing and interpreting financial statements
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Financial Reporting And Analysis
Student’s Previous Knowledge
• Financial Accounting
• Management Accounting
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Financial Reporting And Analysis
What I expect from you in this course?
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Reading topic from relevant text book
Reading articles from internet
Clear your concept through group discussions
Revise my lecture at home twice
Before attending my new lecture revise the
last lecture
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Financial Reporting And Analysis
Introduction of FRA
Financial reporting is presenting financial data of
a company's position, operating performance,
and funds flow for an accounting period.
Financial statements together with related
information may be contained in various forms
for external party use such as in the annual
reports. It is basically financial information that
companies give about their activities, including
how they prepare and show it.
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Financial Reporting And Analysis
Objectives of FRA
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-Usefulness
-Understandability
-Target audience: investors and creditors
-Assessing future cash flows
-Evaluating economic resources
-Primary focus on earnings
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Financial Reporting And Analysis
Meaning of the following accounting
concepts;
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Going concern
Prudence
Materiality
Consistency
Accruals
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Financial Reporting And Analysis
Going Concern
• The assumption that the business will
continue in operation for the foreseeable
future without significantly curtailing its
activity.
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Financial Reporting And Analysis
Prudence
• Prudence is the inclusion of a degree of
caution when making estimates under
conditions of uncertainty.
• It ensures that assets and income are not
overstated and liabilities are not understated.
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Financial Reporting And Analysis
Materiality
• Materiality is a threshold quality that is
demanded of all information given in the
financial statements, i.e. information that is
material should be given in the FS but
information that is not material need not be
given.
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Financial Reporting And Analysis
• Information is material if its omission or
misstatement might reasonably be expected
to influence the economic decisions of users.
• Whether or not information is material will
depend on the size and nature of the item
and the size of the business
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Financial Reporting And Analysis
Consistency
Items should be treated in the same way year
on year. This will enable valid comparisons to
be made. However, if circumstances change
then a business is allowed to change policies
to give a fairer representation of the financial
statements.
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Financial Reporting And Analysis
Accruals / Matching
• To calculate the profit for the period, one must
include all the revenue and expenditure relating
to the period, whether or not the cash has been
received or paid.
• This concept also states that income and
expenses should be matched against each other
within an accounting period as far as possible
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