Accounting: An Introduction - download pdf or read online
By Arthur Hindmarch
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Extra info for Accounting: An Introduction
Stamp and C. Marley, Accounting Principles and the City Code: The Case for Reform (London, Butterworth, 1970). Accounting Standards Steering Committee, The Corporate Report (London, Accounting Standards Steering Committee, 1975). , 1975). T. A. Lee, Income and Value Measurement: Theory and Practice (London, Nelson, 1974). 1 What do you understand by the following terminology? 2 List the different individuals or groups who might be interested in accounting information. What different aspects might they be interested in?
Intangible assets such as good customer relations, a product of superior quality to its competitors, an efficient management team, may be what makes a particular company superior to its rivals. Such assets could be included in a valuation only where objective evidence of value can be shown. In most cases this is not possible because in the examples quoted, although these qualities may improve future performance, it is unlikely that they could be bought and sold as with physical assets, and thus there will be no specific original cost.
The separation of the effects on individual categories of assets, liabilities, or owners' equity as shown in the columns (or accounts) in Fig. 2 is the basis of what is termed the accounts of a firm. The nature of the accounts and the accounting systems for processing data are examined in Chapter 4. In Ex. 5 we assumed that the Crisp Company had just commenced business and there were no assets, liabilities or owners' equity at the beginning of the period. In the subsequent period the starting-point of the analysis will be the amounts of assets, liabilities and owners' equity at the end of the previous period.
Accounting: An Introduction by Arthur Hindmarch