Slide 13.1

Frank Wood and Alan Sangster, Business Accounting, Volume 2, 11th Edition, © Pearson Education Limited 2008

Assets: Non-current

(a) Property, plant and equipment;

(b) Investment property;

(c) Intangible assets;

(d) Financial assets;

(e) Investments accounted for using the equity method;

(f) Biological assets;

(g) Deferred tax assets.

Slide 13.2

Frank Wood and Alan Sangster, Business Accounting, Volume 2, 11th Edition, © Pearson Education Limited 2008

Assets: Current

(a) Inventories;

(b) Current tax assets;

(c) Trade and other receivables;

(d) Cash and cash equivalents.

Slide 13.3

Frank Wood and Alan Sangster, Business Accounting, Volume 2, 11th Edition, © Pearson Education Limited 2008

Liabilities

(a) Trade and other payables;

(b) Provisions;

(c) Financial liabilities;

(d) Liabilities for current tax;

(e) Deferred tax liabilities;

(f) Liabilities included in disposal groups classified as held for sale.

Slide 13.4

Frank Wood and Alan Sangster, Business Accounting, Volume 2, 11th Edition, © Pearson Education Limited 2008

Equity

(a) Issued capital;

(b) Reserves attributable to owners of the parent;

(c) Minority interest.

Slide 13.5

Frank Wood and Alan Sangster, Business Accounting, Volume 2, 11th Edition, © Pearson Education Limited 2008

Fundamental accounting principles

The following accounting principles must be followed when preparing company financial statements:1. A company is presumed to be a going concern.

2. Accounting policies must be applied consistently from year to year.

3. The prudence concept must be followed.

4. The accruals concept must be observed.

5. Each component item of assets and liabilities must be valued separately.

6. Amounts in respect of items representing assets or incomes may not be set off against items representing liabilities or expenditure.