3.4 Final Accounts

Assessment Objective
The purpose of accounts to different stakeholders	AO3

• Purpose of Financial Statements – a concise summary of the purpose of financial statements to various stakeholders.

Assessment Objective
The principles and ethics of accounting practice	AO3

• Introduction to Financial Statements – an introduction to accounting.

• International Financial Reporting Standards – International accounting principles.

• IFRS – website for the International Finance Reporting Standards (IFRS).

• Accounting Principles – US accounting principles.

• What Is an "Ethical Issue" in Financial Accounting?

• Enron Scandal: The Fall of a Wall Street Darling – the infamous example of Enron is explained indicating the impact a lack of ethics in recording and reporting finance of a business can have on various stakeholders.

Assessment Objective
Final accounts: Profit and loss account Balance sheet	AO2, AO4

• Balance Sheet – Introduction – an explanation of the balance sheet with an example provided. Note that it does not follow the IB format exactly.

• Profit and Loss Account – an explanation of the profit and loss account with an example provided. Note that it does not follow the IB format exactly.

• Finance – an explanation of the balance and profit and loss account. Note that it does not follow the IB format exactly.

• Understanding the Income Statement

Assessment Objective
Different types of intangible assets	AO1

• Types of intangible assets – different types of intangible assets explained by the Intellectual Property Office of the UK.

• Intangible Assets – goodwill, patents, and copyrights explained.

• Intangible Assets on the Balance Sheet – intangible assets as it relates to individual investment decisions.

Assessment Objectives
Depreciation using the following methods: Straight line Reducing balance	AO2, AO4
The strengths and weaknesses of each method	AO2

• Accumulated Depreciation on the Balance Sheet – an explanation of accumulated depreciation followed by an explanation of the straight-line method.

• Straight Line Depreciation Method – straight line balance explained.

• Declining Balance Depreciation Method – reducing balance method explained.

• Declining Balance Method of Depreciation – reducing balance method explained.