LO2: Understand and consider the issues in revenue recognition, expense recognition, accruals, prepayments, depreciation, inventory valuation

Accounting for Business

TASK DESCRIPTION

 

In the UK, a conceptual and regulatory framework is currently in place for financial reporting as required by the International Accounting Standards Board (IASB).

TASK

Discuss six accounting concepts used in the preparation of financial statements. Use examples to illustrate the application of these accounting concepts.

LENGTH REQUIRED

1000 words +/- 10%.  Any deviation from this will be penalised.

FORMATTING AND LAYOUT

Please note the following when completing your written assignment:

1. Writing: Written in English in an appropriate business/academic style
2. Focus: Focus only on the tasks set in the assignment.
3. Document format: Essay
4. Ensure a clear title, course, and name or ID number is on a cover sheet and a reference using Harvard referencing throughout is also provided.
5. Research: Research should use reliable and relevant sources of information e.g. academic books and journals that have been peer reviewed. The research should be extensive.

The use of a range of information sources is expected – academic books, peer reviewed journal articles, professional articles, press releases and newspaper articles, reliable statistics, company annual reports and other company information. All referencing should be in Harvard style

Learning outcomes assessed:

LO1: Understand the theoretical and conceptual underpinning and frameworks for financial accounting  LO2: Understand and consider the issues in revenue recognition, expense recognition, accruals, prepayments, depreciation, inventory valuation, recognition of liabilities in the construction of core financial statements for sole traders and limited companies