Werner Seebacher - Management Accounting. Part 1 – Balance Sheet, Profit Loss Account

Werner Seebacher

Management Accounting.

Part 1

Balance Sheet | Profit/Loss Account

Author

Werner Seebacher

ISBN 978-3-7375-8474-6

First Edition 2016

www.management-accounting.net

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Foreword

“Management Accounting. Part 1 - Balance Sheet | Profit/Loss Account.” is based completely on the textbook “Management Accounting.”.

The textbook “Management Accounting.” describes in detail the Big Picture – the central overall connection in accounting/controlling – as well as the elements which affect this connection: Balance Sheet | Profit/Loss Account | Profit Plan | Finance Plan | Budgeted Balance Sheet.

“Management Accounting. Part 1 - Balance Sheet | Profit/Loss Account” deals with the contents of and the connections between the elements Balance Sheet and Profit/Loss Account in detail. Additionally, the effects of concrete accounting/controlling activities and business cases in and on balance sheet and profit/loss account are presented and annotated.

Target groups of “Management Accounting. Part 1 - Balance Sheet | Profit/Loss Account” are students of economic/business courses in the framework of their basic education or in the framework of their introductory courses, students doing post-graduate programmes, as well as managers in enterprises with practical experience – all of them facing the challenge of having to understand and to apply the basic connections of accounting in enterprises – presented in and through balance sheet and profit/loss account.

“Management Accounting. Part 1 - Balance Sheet | Profit/Loss Account” is supplemented and continued by “Management Accounting. Part 2 - Profit Plan | Finance Plan | Budgeted Balance Sheet”.

Overview of the Contents

1. Introduction

2. Survey of the Contents

3. Balance Sheet | Profit/Loss Account

4. Balance Sheet | Profit/Loss Account - Numerical Examples

Table of Contents

1. Introduction

2. Survey of the Contents

2.1. Balance Sheet

2.2. Profit/Loss Account

2.3. Balance Sheet | Profit/Loss Account

2.4. Balance Sheet | Profit/Loss Account

Profit Plan | Finance Plan | Budgeted Balance Sheet

2.5. Profit Plan

2.6. Finance Plan

2.7. Profit Plan | Finance Plan

2.8. Budgeted Balance Sheet

2.9. Finance Plan | Budgeted Balance Sheet

2.10. Profit Plan | Finance Plan | Budgeted Balance Sheet – the Big Picture

3. Balance Sheet | Profit/Loss Account

3.1. Connections

3.1.1. Balance Sheet

3.1.2. Profit/Loss Account

3.1.3. Balance Sheet | Profit/Loss Account – Connection

3.1.4. Balance Sheet | Profit/Loss Account – Procedure

3.1.5. Profit and Compilation of Profit

3.1.5.1. Compilation of Profit based on Balance Sheet | Profit/Loss Account

3.1.5.2. Compilation of Profit based on Cash Method of Accounting | Income-Surplus Method

3.1.5.3. Effects of the Different Methods of Compiling the Profit

3.2. Balance Sheet

3.2.1. Fixed Assets

3.2.2. Current Assets

3.2.3. Inventory

3.2.4. Receivables | Receivables from Trade | Accounts Receivable

3.2.5. Bank Account | Bank Balance, Cash | Cash Balance

3.2.6. Deferred Charges

3.2.7. Equity Capital and Reserves

3.2.8. Debt Capital

3.2.9. Liabilities | Liabilities from Trade | Accounts Payable | Payables

3.2.10. Provisions

3.2.11. Deferred Income

3.3. Profit/Loss Account – Total Cost Method

3.3.1. Turnover/Sales

3.3.2. Material Expenses

3.3.3. Personnel Expenses

3.3.4. Depreciation

3.3.5. Other Operating Expenses

3.3.6. Expense for Interest Paid

3.3.7. Other Operating Income

3.3.8. Income from Interest

3.3.9. Extraordinary Income

3.3.10. Extraordinary Expenses

3.3.11. Tax

3.3.12. Formation of Revenue Reserves

3.3.13. Reversal/Retransfer of Revenue Reserves

3.3.14. Change in Inventory

3.3.15. Goods on Own Account (Capitalized)

3.4. Profit/Loss Account – Cost of Sales Method

3.4.1. Turnover/Sales

3.4.2. Production Costs | Production Expenses (for services which were necessary for achieving the turnover)

3.4.3. Gross Profit (of Turnover/Sales)

3.4.4. Distribution Costs | Distribution Expenses

3.4.5. General Administrative Costs | General Administrative Expenses

3.4.6. Other Operating Expenses

3.4.7. Total Cost Method and Cost of Sales Method – Integration of the Presentation

3.5. Profit/Loss Account – Result Items

3.5.1. Operating Result

3.5.2. Financial Result

3.5.3. Profit | Loss from Ordinary Activities

3.5.4. Extraordinary Result

3.5.5. Net Profit | Net Loss

3.5.6. Distributable Profit

3.5.7. EBIT | EBT | EAT

3.5.8. EBIT | EBT | EAT | EBITD | EBITDA

4. Balance Sheet | Profit/Loss Account - Numerical Examples

4.1. Example 1: Foundation of an Enterprise

4.2. Example 2: Investment

4.3. Example 3: Financing

4.4. Example 4: Investment and Financing

4.5. Example 5: Purchase of Goods, Use of Goods, Turnover/Sales

4.6. Example 6: Deferred Charges

4.7. Example 7: Deferred Income

4.8. Example 8: Provision

4.9. Example 9: Asset Disposal

4.10. Example 10: Goods on Own Account

Author

Method

List of Relevant Literature

Index of Figures

1. Introduction