ACTG_101-101a_Topic_3_Processing_Transactions_of_a_Service_Business.pptx

ACTG 101/101A ACCOUNTING PRINCIPLES/ FUNDAMENTALS OF ACCOUNTING  TEXTBOOK: SIMPLIF  TEXTBOOK: SIMPLIFIED IED ACCOUNTING ACCOUNTING FOR BUSINESS (INTERNATIONAL EDITION) AUTHORS: ZENAIDA VERA VERA-CRUZ -CRUZ AND MARIBEL VERA VERA-CRUZ -CRUZ

TOPIC 3: PROCESSING TRANSACTIONS OF A SERVICE BUSINESS

TOPIC 3: PROCESSING TRANSACTIONS OF A SERVICE BUSINESS

Coverage Financia R!"#$%& Ana'in %$an&ac%i#n& %# &%a$% a

*+&in!&& Acc#+n%in E,+a%i#n Ca$% #. Acc#+n%&  /#+$n  /#+$nai aiin in #$ $!c#$0in $!c #$0in  1a$i#+ 1a $i#+& & *+&in!&& %$an&ac%i#n& Ca&&i.'in an0 &+22a$iin %! %$an&ac%i#n& %$#+ 2an+a !n!$a !0!$ an0 %$ia *aanc!3 $!&"!c%i1!'

FINANCIAL REPORTS Inc#2! S%a%!2!n% 4 &#5& #5 5!a% i&

"$#0+c!0 *' i&%in %! $!1!n+!& !a$n!0 an0 !6"!n&!& inc+$$!0 *' %! *+&in!&& S%a%!2!n% #. O5n!$7& E,+i%' 4 &#5& 5' %! n!% 5#$% can!0 *' i&%in %! ac%i1i%i!& %a% ca+&!0 i% %# inc$!a&! #$ 0!c$!a&! S%a%!2!n% #. Ca& F#5& 4 &#5& 5a% a""!n!0 %# %! ca& *' !n+2!$a%in %! ac%i1i%i!& #. ca& $!c!i1!0 an0 ca& +&!0 *' %! *+&in!&& S%a%!2!n% #. Financia P#&i%i#n 4 &#5& #5 %! 5!a% #. %! *+&in!&& &%an0& *' !n+2!$a%in %! a&&!%&3 ia*ii%i!& an0 n!% 5#$% #. %! 4 *+&in!&&

FINANCIAL REPORTS  E!a"#$e

%

R!"#$% .#$2 #. S%a%!2!n% #. Financia P#&i%i#n E!2!n%& a$! "$!&!n%!0 in 1!$%ica #$0!$ H!a0!$: Na2! #. C#2"an' Na2! #. S%a%!2!n% Da%! #. S%a%!2!n% Da%! &%a$%& 5i% 9a& #. SFP can *! "$!"a$!0 an'%i2! !1!n i. #"!$a%i#n #. %! *+&in!&& a& n#% &%a$%!0 '!% P!&# &in a% &%a$% #. !ac c#+2n P!&# &in +n0!$ !ac &in! in! D#+*! in! a% %! !n0 #. 8nancia $!"#

%$ H!a0!$ 4 &a2! a& SFP

Can #n' *! "$!"a$!0 a.%!$ %! *+&in!&& a& !na!0 in i%& *+&in!&& ac%i1i%i!&

H!a0!$ 4 &a2! a& SFP N!% Inc#2! a00!0 %# %! *!innin ca"i%a %!n 5i%0$a5a& a$! 0!0+c%!0 %# c#2! +" 5i% !n0in *aanc! #. ca"i%a

H!a0!$ 4 &a2! a& SFP Ca& ;#5 $!"#$%in .$#2 #"!$a%in ac%i1i%i!& can *! "$!"a$!0 *' %! 0i$!c% an0 in0i$!c% 2!%#0 Di$!c% 2!%#0 &#5& in;#5& an0 #+%;#5& *a&!0 #n ac%+a ca& %$an&ac%i#n& 0+$in %! "!$i#0< Ca& !n0in *aanc! &#+0 *! %! &a2! a2#+n% $!;!c%!0 in %! S%a%!2!n% #. Financia P#&i%i#n

)

H!a0!$ 4 &a2! a& SFP In0i$!c% 2!%#0 $!"#$%in #. O"!$a%in ac%i1i%i!& &%a$%& 5i% N!% Inc#2! a& $!"#$%!0 in %! Inc#2! &%a%!2!n% an0 a0=+&%2!n%& &+c a&: a< Can!& 0+$in %! "!$i#0 in in1!n%#$i!&3 #"!$a%in $!c!i1a*!& an0 "a'a*!> *< N#n-ca& i%!2& &+c a& 0!"$!cia%i#n3 "$#1i&i#n&3 0!.!$$!0 %a6!&3 +n$!ai!0 .#$!in c+$$!nc' ain& an0 #&&!&3 +n0i&%$i*+%!0 "$#8%& #. a&&#cia%!& an0 2in#$i%' in%!$!&%&> c< A #%!$ i%!2& .#$ 5ic %! ca& !?!c%& a$! in1!&%in #$ 8nancin IAS @ !nc#+$a!& $!"#$%in ca& ;#5& .$#2 #"!$a%in ac%i1i%i!& +&in %! 0i$!c% 2!%#0

10

RELATIONS*IPS AMONG FINANCIAL STATEMENTS

FINANCIAL STRUCTURE OF A BUSINESS Ba&!0 #n %! .$a2!5#$ #.

acc#+n%in3 %! 8nancia "#&i%i#n #$ &%$+c%+$! #. a *+&in!&& !n%i%' i& *a&!0 #n %$!! !!2!n%& ca!0 a&&!%&3 ia*ii%i!&3 an0 #5n!$&7 !,+i%' 5i! i%& 8nancia "!$.#$2anc! i& *a&!0 #n %5# !!2!n%& ca!0 $!1!n+! an0 !6"!n&!

13

FINANCIAL STRUCTURE OF A BUSINESS A&&!%& 0!8n!0 a& %in& #. 1a+! #5n!0

*' %! *+&in!&&< T!' *!n!8% %! *+&in!&&3 a$! *!in +&!0 in #"!$a%in %! *+&in!&& an0 a$! !6"!c%!0 %# a1! #n i.!< A&&!%& ini%ia' c#2! .$#2 in1!&%#$& an0 &!c#n0a$i' .$#2 c$!0i%#$& Lia*ii%i!& 0!8n!0 a& 0!*%& #$ #*ia%i#n& #. %! *+&in!&& #5in %# #+%&i0! "a$%i!& i! %! *an&3 8nancin c#2"ani!& an0 &+""i!$& #. ##0& an0 &!$1ic!&< T!&! a$! #*ia%i#n& !6"!c%!0 %# *! "ai0 in %! 14 .+%+$!<

FINANCIAL STRUCTURE OF A BUSINESS O5n!$7& E,+i%' 0!8n!0 a& %! $!&i0+a $i% #$ in%!$!&% #. %! #5n!$ in %! !n%i%'7& a&&!%&> a.%!$ %! c$!0i%#$&7 an0 &+""i!$&7 cai2& a$! &a%i&8!0

1%

BUSINESS TRANSACTIONS S%a$%in "#in% in %! acc#+n%in

"$#c!&& i& an ana'&i& #. %! %$an&ac%i#n& #. a *+&in!&& I% i& an' 8nancia !1!n% %a% can!& %! $!&#+$c!& #. a 8$2 Acc#+n%an% 2+&% ## a% %! !?!c%& #. !ac *+&in!&& %$an&ac%i#n %# 0!ci0! 5a% in.#$2a%i#n %# $!c#$0 an0 5!$! %# $!c#$0 i%  T# *! a*! %# ana'! %! %$an&ac%i#n31& %! *##!!"!$ #$ acc#+n%an% n!!0& %#

BUSINESS TRANSACTIONS I% i& an !6can! #. 1a+!& *!%5!!n

%5# "a$%i!& in %!$2& #. 2#n!' Va+!& !6can!0 a$! a&&+2!0 %# *! !,+a  T$!! .!a%+$!& #. a %$an&ac%i#n:  T!$! i& an !6can! #. 1a+!&  T!$! a$! %5# "a$%i!& I% i& in %!$2& #. 2#n!'

M+&% a5a'& a1! a 0+a !?!c%: 1a+! 1' $!c!i1!0 %!$! i& an !,+a 1a+! "a$%!0 Ga1! $i&! %# %! B##!!"in S'&%!2

BUSINESS TRANSACTIONS E6a2"! : D#$ia X!$#6 C!n%!$ "ai0

P ca& .#$ a cac+a%#$ *#+% .$#2 Na%i#na B##&%#$! E6can! #. 1a+!&: 1a+! $!c!i1!0 4 cac+a%#$ .$#2 Na%i#na B##&%#$! an0 1a+! "a$%!0 4 ca& "ai0 *' D#$ia X!$#6 S#"  T5# "a$%i!&: Na%i#na B##&%#$! an0 D#$ia X!$#6 S#"  T!$2& #. 2#n!': P 1(

BUSINESS TRANSACTIONS E6a2"! : M$< C$+ "ai0 P3 .#$

i& ai$c+% 0#n! a% Da1i07& Sa#n E6can! #. Va+!&  T5# "a$%i!&  T!$2& #. M#n!' 1)

BUSINESS TRANSACTIONS E6a2"! : A1#n C#&2!%ic& "ai0 SGV

an0 C#< P3 .#$ acc#+n%in &!$1ic!&< E6can! #. Va+!&  T5# "a$%i!&  T!$2& #. M#n!' +0

BUSINESS TRANSACTIONS  T$an&ac%i#n& n#% c#n&i0!$!0 8nancia in

na%+$! cann#% *! $!c#$0!0 in %! *##& #. %! !n%i%' 4 n# !6can! #. 1a+!& E6a2"!&: S#$ian# i$!0 %5# %#+$i&% +i0!& .#$ an

#+$' $a%! #. P !ac A !a&! c#n%$ac% 5a& &in!0 .#$ %! +&! #. an #c! &"ac! a% a 2#n%' $!n%a #. P3 An #$0!$ .#$ 2!0ica &+""i!& 5a& "ac!0 5i% G##0 H!a% T$a0in a2#+n%in %# +1 P3

ACCOUNT a : a &%a%!2!n% !6"ainin #n!J& c#n0+c% , : a &%a%!2!n% #$ !6"#&i%i#n #. $!a&#n&3

ca+&!&3 #$ 2#%i1!& n# &a%i&.ac%#$' account  #. %!&! "!n#2!na - : a $!a&#n .#$ an ac%i#n : *a&i& #n

%a%

account  I

2+&% $!.+&! ++

ACCOUNT 9na2!& a&&in!0 %# %$an&ac%i#n&

in1#1!0 in an !6can! #. 1a+!& B$i!. 0!&c$i"%i#n #. i%!2& %a% $!"$!&!n% %! acc#+n%in !!2!n%& D!1i&! +&!0 %# $!c#$0 %! can!& (inc$!a&!& #$ 0!c$!a&!&) in %! acc#+n%in !!2!n%&

+3

ASSETS R!&#+$c!& #$ %in& #. 1a+! #5n!0 *'

an !n%!$"$i&! R!&#+$c! c#n%$#!0 *' %! !n%i%' a& a $!&+% #. "a&% !1!n%& an0 .$#2 5ic .+%+$! !c#n#2ic *!n!8%& a$! !6"!c%!0 %# ;#5 %# %! !n%i%'  T! .+%+$! !c#n#2ic *!n!8% !2*#0i!0 in an a&&!% i& %! "#%!n%ia %# c#n%$i*+%!3 0i$!c%' #$ in0i$!c%'3 %# %! ;#5 #. ca& an0 ca& !,+i1a!n%& %# %! !n%i%' +4 N#$2a' $!c#$0!0 a& 0!*i% *aanc!

ASSETS Ca&&i8!0 in%# C+$$!n% Ca& #$ ca& !,+i1a!n% n#% $!&%$ic%!0 .#$

c+$$!n% +&! E6"!c%!0 %# *! $!ai!0 #$ !0 .#$ &a! #$ c#n&+2"%i#n in %! n#$2a c#+$&! #. %! !n%!$"$i&!7& #"!$a%in c'c! H!0 "$i2a$i' .#$ %$a0in "+$"#&!& .#$ &#$% %!$2 an0 !6"!c%!0 %# *! $!ai!0 5i%in  2#n%& #. %! SFP 0a%! N#n C+$$!n%

+%

ASSETS Ca& an' i%!2 #n an0 5i% 2#n!%a$' 1a+!

%a% a *an 5#+0 acc!"% .#$ 0!"#&i% Inc+0!& c#in& an0 c+$$!nci!&3 "!$&#na c!c&3 2#n!' #$0!$&3 %$a1!!$7& c!c3 2a0! "a'a*! %# %! *+&in!&& an0 *an 0$a.%& A&# inc+0!& .+n0& in %! *an a& &a1in& #$ c+$$!n% 0!"#&i% +&

ASSETS Acc#+n%& R!c!i1a*! A2#+n%& c#!c%i*! R!"$!&!n%& 0!*%#$7& #$a "$#2i&! %#

"a' c!$%ain a2#+n% %# %! *+&in!&& an0 %! $i% #. %! *+&in!&& %# c#!c% c!$%ain a2#+n% in "!&# E6a2"! 5#+0 *! $!c!i1a*!& .$#2 &a! #. ##0& an0 &!$1ic!&

+'

ASSETS N#%!& R!c!i1a*! P$#2i&&#$' n#%! $!c!i1!0 *' %!

*+&in!&& .$#2 i%& 0!*%#$& an0#$ c+&%#2!$& P$#2i&&#$' n#%! i& a 5$i%%!n "$#2i&! %# "a' a c!$%ain a2#+n% #n &"!ci8!0 #$ 0!%!$2ina*! 0a%! Acc$+!0 In%!$!&% R!c!i1a*! In%!$!&% !a$n!0 #n n#%!& $!c!i1a*! *+% n#% '!% $!c!i1!0 in ca& +(

ASSETS In1!n%#$i!& A&&!%& !0 .#$ &a! in %! n#$2a

#"!$a%i#n #. %! *+&in!&& E6a2"!& a$! 2!$can0i&! in1!n%#$'3 5#$ in "$#c!&& in1!n%#$' an0 $a5 2a%!$ia& in1!n%#$' Oc! S+""i!& Va$i#+& &+""i!& *#+% .#$ +&! in %! #c! *+% a$! &%i +n+&!0 E6a2"!& a$! c#+"#n *#n0&3 in3 +) *a"!n3 an0 =ani%#$ia &+""i!$&

ASSETS P$!"ai0 E6"!n&!& E6"!n&!& "ai0 in a01anc! E6"!n&!& n#% '!% inc+$$!0 #$ +&!0

30

COMMONL. USED NON CURRENT ASSETS Lan0 Si%! #5n!0 *' %! *+&in!&& #n 5ic

%! *+&in!&& *+i0in i& c#n&%$+c%!0 N#% &+*=!c%!0 %# 0!"$!cia%i#n B+i0in S%$+c%+$! #5n!0 *' %! *+&in!&& +&!0 in %! #"!$a%i#n #. %! *+&in!&& 31

COMMONL. USED NON CURRENT ASSETS F+$ni%+$! an0 Fi6%+$! L#n-i1!0 i%!2& +&!0 *' %! *+&in!&&

inc+0in &%#$! .+$ni&in&3 &+c a& &#5ca&!&3 c#+n%!$&3 c#n%ain!$&3 0i&"a' $ac&3 a& 5! a& .+$ni%+$! +&!0 .#$ #c! "+$"#&!&3 &+c a& 0!&&3 cai$&3 an0 ca*in!%& Oc! E,+i"2!n% C#2"+%!$&3 "$in%!$&3 .a6 2acin!&3 3+ ai$c#n& an0 ai$ .an +ni%&

COMMONL. USED NON CURRENT ASSETS D!i1!$' E,+i"2!n% Ca$& an0 %$+c& +&!0 in 0!i1!$in

##0& an0 &!$1ic!&

33

ASSET CONTRAVALUATION ACCOUNTS A#5anc! .#$ D#+*%.+ Acc#+n%& R!.!$& %# an a2#+n% !&%i2a%!0 +nc#!c%i*! #n

$!c!i1a*! in c#2"ianc! 5i% %! "$inci"! #. c#n&!$1a%i&2 C#n%$a acc#+n% .#$ $!a%!0 $!c!i1a*! O%!$ %!$2& +&!0: A#5anc! .#$ Unc#!c%i*! Acc#+n%& #$ A#5anc! .#$ Ba0 D!*%& Acc+2+a%!0 D!"$!cia%i#n A$!a%! "!$i#0 c#&%& #. +&in a 0!"$!cia*! "an% a&&!% E6a2"!& a$! acc+2+a%!0 0!"$!cia%i#n #. 34 *+i0in3 acc+2+a%!0 0!"$!cia%i#n #. 2acin!$'

LIABILIT. ACCOUNTS P$!&!n% #*ia%i#n #. %! !n%i%' a$i&in

.$#2 "a&% !1!n%&3 %! &!%%!2!n% #. 5ic i& !6"!c%!0 %# $!&+% in an #+%;#5 .$#2 %! !n%i%' #. $!&#+$c!& !2*#0'in !c#n#2ic *!n!8%& O*ia%i#n& 2a' *! !a' !n.#$c!a*! a& a c#n&!,+!nc! #. a *in0in c#n%$ac% #$ &%a%+%#$' $!,+i$!2!n% R!"$!&!n% cai2& aain&% %! a&&!%& #. %! *+&in!&& 3% N#$2a' a c$!0i% *aanc!

LIABILIT. ACCOUNTS Ca&&i8!0 in%# C+$$!n% E6"!c%!0 %# *! &!%%!0 in %! n#$2a c#+$&!

#. %! !n%!$"$i&!7& #"!$a%in c'c! D+! %# *! &!%%!0 5i%in  2#n%& #. %! S%a%!2!n% #. Financia P#&i%i#n 0a%! N#n C+$$!n% Lia*ii%i!&

3&

LIABILITIES Acc#+n%& Pa'a*! O*ia%i#n #$ 0!*%& %# c$!0i%#$& .#$

2#n!' *#$$#5!0 #$ 2!$can0i&! an0 #%!$ a&&!%& *#+% #n c$!0i% E6a2"!& a$! #*ia%i#n& a$i&in .$#2 "+$ca&!& #n acc#+n% N#%!& Pa'a*! P$#2i&&#$' n#%! i&&+!0 *' %! *+&in!&& %# i%& c$!0i%#$& .#$ 2#n!' *#$$#5!0 #$ 2!$can0i&! an0 #%!$ a&&!%& *#+% 3' #n c$!0i%

LIABILITIES Acc$+!0 In%!$!&% Pa'a*! In%!$!&% inc+$$!0 in %! c+$$!n% "!$i#0

*+% n#% '!% "ai0 SSS P$!2i+2 Pa'a*! A2#+n% #. !2"#'!! an0 !2"#'!$ c#n%$i*+%i#n %# SSS 5ic a$! n#% '!% $!2i%%!0 %# SSS i%#0in Ta6 Pa'a*! A2#+n% #. inc#2! %a6 5i%!0 .$#2 %! &aa$' #. !2"#'!!& in *!a. #. BIR 3( %a% %! !2"#'!$ a& %# $!2i% %# BIR #n

EAMPLES OF NON CURRENT LIABILITIES L#an& Pa'a*! A$i&!& .#$ a2#+n%& *#$$#5!0 M#$%a! Pa'a*! S+""#$%!0 *' a ca%%! 2#$%a! &+c

a& an0 5ic i& a%%ac!0 %# %! ia*ii%' an0 can *! &+*=!c% %# a%%ac2!n% 5!n *+&in!&& .ai& %# "a' 3)

ONERS E2UIT. ACCOUNTS R!&i0+a a2#+n% a.%!$ 0!0+c%in

ia*ii%i!& .$#2 a&&!%& C#2"$i&!& %! ca"i%a c#n%$i*+%i#n an0 5i%0$a5a& *' %! #5n!$ Inc$!a&!0 *' ca"i%a c#n%$i*+%i#n #. #5n!$ an0 n!% inc#2! #. %! *+&in!&& an0 0!c$!a&!0 *' %! #5n!$7& 5i%0$a5a& an0 #&&!& #. %! *+&in!&& 40

ONERS E2UIT. ACCOUNTS  T!$2in##i!& +&!0 S#! P$#"$i!%#$&i": O5n!$7& Ca"i%a Pa$%n!$&i": Pa$%n!$&7 Ca"i%a C#$"#$a%i#n: Sa$!#0!$&7 E,+i%' N#$2a' c$!0i% *aanc! D$a5in  T!2"#$a$' acc#+n% +&!0 %# $!c#$0

ini%ia' %! a2#+n% %a!n *' %! #5n!$ .$#2 %! *+&in!&&< Ti& i& c#&!0 %# %! 41 ca"i%a acc#+n% #. %! #5n!$ a% %! !n0 #. %! acc#+n%in "!$i#0

ACCOUNTING E2UATION #+0 a5a'& a1! an !,+a !.% &i0!

an0 $i% &i0! I. a a&&!%& a$! cai2a*! *' %! #5n!$3 %! acc#+n%in !,+a%i#n i& &i2"': ASSETS  ONER7S EUITQ E6a2"!: P!%!$ S#$ian# in1!&%!0 P33 ca& in a ##0 *+&in!&& ASSETS  ONER7S EUITQ Ca& P33 S#$ian#3 Ca"i%a 4+ P33

ACCOUNTING E2UATION I. %!$! i& a cai2 .$#2 *#% %! c$!0i%#$

an0 #5n!$3 %! acc#+n%in !,+a%i#n *!c#2!& #n!$ ASSETS  LIABILITIES  ONER7S EUITQ E6a2"!: A&&+2! %a% S#$ian# *#$$#5!0 ca& #. P33 .$#2 %! *an .#$ +&! in %! *+&in!&& ASSETS  LIABILITIES  ONER7S EUITQ 43 Ca& P33

L#an Pa'a*! P33 S#$ian#3 Ca"i%a

1 A&&!%& 5!$! in1!&%!0 *' %! #5n!$ %# &!% +" a %$a1! *+&in!&& Ma$c : Ma' G#2! #"!n!0 a %#+$ an0 %$a1! a!nc' *' in1!&%in ca& #. P3< S! a& %$!! ca$& 5#$% P33 *+% 0!ci0!0 %# in1!&% #n' %5# #. %!&! ca$& 5#$% P@3 Ana'&i&: T! a&&!% #. %! *+&in!&& 5i inc$!a&! in %! .#$2 #. ca& P3 an0 ca$& P@3 5i% a c#$$!&"#n0in 44 inc$!a&! in #5n!$7& !,+i%'

1

4%

1 Ca& 5a& *#$$#5!0 .#$ +&! *' %! *+&in!&& Ma$c : G#2! *#$$#5!0 P3 ca& .$#2 M!%$#*an .#$ +&! in %! *+&in!&&< Ana'&i&: T! a&&!%& #. %! *+&in!&& 5i inc$!a&! aain in ca& *' P3 5i% a c#$$!&"#n0in inc$!a&! in ia*ii%' 4&

1

4'

1 A00i%i#na a&&!% 5a& "+$ca&!0 .#$ ca& Ma$c @: B#+% %a*!& an0 cai$& .$#2 Bi27& an0 "ai0 ca& #. P3

Ana'&i&: T! a&&!%& #. %! *+&in!&& 5i inc$!a&! in %! .#$2 #. .+$ni%+$! an0 0!c$!a&! in %! .#$2 #. ca&< T#%a a&&!%& 5i &%i *! %! &a2! &inc! %!$!4( 5a& #n' a can! in i%& .#$2< N#%! %a%

1

4)

1 A00i%i#na a&&!% 5a& "+$ca&!0 #n acc#+n% Ma$c : Va$i#+& !,+i"2!n% 5!$! "+$ca&!0 #n acc#+n% .$#2 Na%i#na inn!$& .#$ P3 Ana'&i&: T! a&&!%& #. %! *+&in!&& 5i inc$!a&! in %! .#$2 #. !,+i"2!n% 5i% a c#$$!&"#n0in inc$!a&! in ia*ii%i!& %0

1

%1

1 Ca& 5a& 5i%0$a5n *' %! #5n!$ Ma$c : G#2! 2a0! a ca& 5i%0$a5a #. "3 .#$ "!$&#na +&!

Ana'&i&: T! a&&!%& #. %! *+&in!&& 5i 0!c$!a&! in %! .#$2 #. ca& P3 5i% a c#$$!&"#n0in 0!c$!a&! in %! #5n!$7& !,+i%' &inc! #5n!$ $!c#1!$!0 "a$% #. !$ %+ in1!&%2!n% *' 5i%0$a5in ca&

1

%3

1 Ca& 5a& "ai0 .#$ ia*ii%' #. %! *+&in!&& Ma$c : T! acc#+n% 0+! %# Na%i#na inn!$& 5a& "ai0 in ca&

Ana'&i&: A&&!%& #. %! *+&in!&& 5i 0!c$!a&! 5i% a c#$$!&"#n0in 0!c$!a&! in ia*ii%i!& %4

1

%%

1 A""ica%i#n #. Acc#+n%in P$inci"!& Ma$c : B+&in!&& En%i%' C#nc!"% Ma$c @  : E6can! P$ic! #$ C#&% C#nc!"% Ma$c 3 @3  an0 : O*=!c%i1i%' P$inci"!

%&

1

%'

+  /an+a$' : C#"' C!a$ #ca%!0 in .$#n% #. R#*in&#n& Mania &%a$%!0 i%& #"!$a%i#n #n  /an+a$' 3 < T! #5n!$3 S+&an Paaci#3 in1!&%!0 ca& #. P3 an0 !,+i"2!n% #. P3 Ana'&i&:

%(

+

%)

+  /an+a$' : B#+% .+$ni%+$! an0 86%+$!& 5#$% P3 #n acc#+n%

Ana'&i&:

&0

+

&1

+  /an+a$' @: B#+% a00i%i#na "#%#c#"'in 2acin! .#$ P3<  T!$2&:  0#5n3 *aanc! #n acc#+n% %# *! "ai0 a% %! !n0 #. %! 2#n% Ana'&i&:

&+

+

&3

+  /an+a$' : Hi$!0 a !"!$ #n c#22i&&i#n *a&i&3 *a&!0 #n  #. &a!&3 %# #"!$a%! %! 2acin!

Ana'&i&:

&4

+

&%

+  /an+a$' : M&< Paaci# 5i%0$!5 P3 ca& .#$ "!$&#na +&!

Ana'&i&:

&&

+

&'

+  /an+a$' : B#+% &+""i!& c#&%in P3 an0 "ai0 ca&

Ana'&i&:

&(

+

&)

+  /an+a$' : T! acc#+n% #. /an+a$'  i& 0+!< M&< Paaci# "ai0 %i& .$#2 !$ "!$&#na ca&<

Ana'&i&:

'0

+

'1

+  /an+a$' : M&< Paaci# i&&+!0 a "$#2i&&#$' n#%! #. %! acc#+n% #.  /an+a$' @

Ana'&i&:

'+

+

'3

+

'4

BUSINESS ACTIVITIES B+&in!&& T$an&ac%i#n& !n!$a'

ca&&i8!0 in%#: Financin: inc+0!& in1!&%2!n% 2a0! *' #5n!$3 *#$$#5!0 a2#+n%& .$#2 *an& an0 #%!$ !n%i%i!&3 0$a5in& 2a0! *' %! #5n!$ an0 $!"a'2!n%& %# !n0!$& In1!&%in: inc+0!& ac,+i&i%i#n #. "$#"!$%i!& &+c a& an03 .+$ni%+$!3 2acin!$i!& an0 !,+i"2!n% a& 5! a& %! !1!n%+a 0i&"#&a #. an' #. %!&! #n $!"ac!2!n% #$ $!%i$!2!n% 0a%! '%

BUSINESS ACTIVITIES B+&in!&& T$an&ac%i#n& !n!$a'

ca&&i8!0 in%#: O"!$a%in: $!a%in %# %! !a$nin ac%i1i%i!& #. %! !n%!$"$i&! &+c a& &!in #. ##0& #$ &!$1ic!& an0 inc+$$in #. &!$1ic!& #$ !6"!n&!&

'&

C*ARACTERISTICS OF FINANCIAL INFORMATION Un0!$&%an0a*ii%': +&!$& &#+0 n#5 #5 %# $!a0

an0 +&! 8nancia $!"#$%&< I% $!,+i$!& %a%:   T!$2in##i!& +&!0 2+&% *! c!a$ F#$2 an0 "$!&!n%a%i#n #$0!$' U&!$& a1! a $!a&#na*! n#5!0! #. 8nanc!3

!c#n#2ic& an0 acc#+n%in %# *! a*! %# 2a! a ##0 a&&!&&2!n% an0 &#+n0 =+02!n% R!!1anc!: "$!&c$i*!& %! ,+ai%' #. in.#$2a%i#n>

&#+0 i1! a c!a$ "ic%+$! #. 5a% a""!n!0 %# %! *+&in!&&> in.#$2a%i#n c#n%ain!0 in %! $!"#$%& &#+0 2a! i% "#&&i*! .#$ %! +&!$& %# "$!0ic% 5a% 5i *! %! 0i$!c%i#n #. %! *+&in!&& in %! '!a$& %# '' c#2!> i1!& +&!$& .!!0*ac #. #5 2+c %! c#2"an' !a$n!0

C*ARACTERISTICS OF FINANCIAL INFORMATION R!ia*ii%': 0!$!! #. c#n80!nc! +&!$&

a1! #n 8nancia &%a%!2!n%& *!ca+&! %!' *!i!1! in %! %$+%.+n!&& #. %! $!"#$%&3 %a% %!&! a$! .$!! .$#2 2a%!$ia !$$#$& #$ 2i&&%a%!2!n%& C#2"a$a*ii%': in.#$2a%i#n *!c#2!& 2#$! 2!anin.+ *!ca+&! +&!$& can i0!n%i.' can!& %ain "ac! in an !n%i%'3 *!%5!!n %5# #$ 2#$! "!$i#0& &# %a% +&!$& 5i *! a*! %# 0!%!$2in! %! %$!n0 #. %! *+&in!&&> %i& 2a' a&# *! a""i!0 *!%5!!n %5# #$ '( 2#$! c#2"ani!&

EPANDING T*E E2UATION TO S*O T*E OPERATING RESULT OF T*E BUSINESS  ASSETS  LIABILITIES  ONER7S EUITQ Inc$!a&!& 0+! %# In1!&%2!n%&  R!1!n+!&   D!c$!a&!& 0+! %# i%0$a5a& an0 ') E6"!n&!&

REVENUES R!"$!&!n !"$!&!n%% in;#5 #. ca& #$ #%!$ a&&!%&

c#2in .$#2 a ci!n% #$ c+&%#2!$ .#$ &!$1ic! $!n0!$!0 #$ .#$ 2!$can0i&! &#0 R!"$!&!n% %! !a$nin& #. %! *+&in!&& .$#2 .$ #2 &a!& #. ##0& #$ &!$1ic! $!n0!$!0 $!n0!$!0 A?!c% 8nancia "#&i%i#n in %a% i% inc$!a&!& a&&!%& 5ic in %+$n inc$!a&!& #5n!$7& !,+i%' #$ n!% 5#$%  Ha1! n#2ina c$!0i% *aanc! (0

COMMON REVENUE ACCOUNTS Sa!& 4 acc#+n% +&!0 %# &+22a$i!

&a! #. ##0 #$ a %$a0! #$ 2!$can0i&in *+&in!&&> inc+0!& ca& &a!& an0 &a!& #n acc#+n% S!$1ic! inc#2! 4 !a$nin& 0!$i1!0 .$#2 &!$1ic! $!n0!$!0 *' a &!$1icin *+&in!&& %# i%& c+&%#2!$&> 2a' *! ca& #$ #n acc#+n% P$ P$#.!&&i#na #.!&&i#na .!! 4 !a$nin& 0!$i1!0 .$#2 &!$1ic!& $!n0!$!0 *' a (1 "$#.!&&i#na #$ "$#.!&&i#na &!$1icin

COMMON REVENUE ACCOUNTS In%!$!&% Inc#2! 4 !a$nin& $!"$!&!n%in $!"$!&!n%in

%! %i2! 1a+! #. 2#n!' 0!$i1!0 .$#2 "$#2i&&#$' n#%!& R!n% Inc#2! 4 inc#2! !a$n!0 .$#2 a#5in #%!$& %# +&! %! "$#"!$%' #$ .acii%' #. %! *+&in!&&

(+

COMMON REVENUE ACCOUNTS Gain #n Sa! #. O%!$ A&&!%& 4 inc#2!

0!$i1!0 .$#2 %! &a!& #. a&&!%& +&!0 in %! *+&in!&& #"!$a%i#n> %!$! i& ain #n &a! i. "$#c!!0& !6c!!0 c#&% #. %! 0i&"#&!0 a&&!%< E6a2"!&: ain #n &a! #n !,+i"2!n%3 ain #n &a! #. in1!&%2!n%&3 ain #n &a! #. an0

(3

EPENSES  T! c#n&+2"%i#n #. a&&!%& #$ +&in

+" #. &!$1ic! %# !n!$a%! $!1!n+! C#&%& inc+$$!0 in c#n0+c%in %! *+&in!&& ac%i1i%i!& Ha1! n#2ina 0!*i% *aanc!

(4

COMMON EPENSE ACCOUNTS C#&% #. Sa!& 4 1a+! #. 2!$can0i&!

&#0 S+""i!& !6"!n&! 4 a2#+n% #. &+""i!& c#n&+2!0 #$ +&!0 *' %! *+&in!&& 0+$in %! "!$i#0 Sa!& an0 a!& !6"!n&! 4 a2#+n% "ai0 %# &!$1ic!& $!n0!$!0 *' %! !2"#'!!& in %! #"!$a%i#n #. %! *+&in!&& In&+$anc! !6"!n&! 4 a2#+n% #. (% in&+$anc! "#ic' inc+$$!0 0+$in %!

COMMON EPENSE ACCOUNTS  T$an&"#$%a%i#n !6"!n&! 4 .a$! "ai0 %#

"+*ic +%ii%' 1!ic!&  Ta6!& an0 Lic!n&!& !6"!n&! 4 c#&% #. #ca a& 5! a& na%i#na %a6!& %a% a$! inc+$$!0 an0 $!,+i$!0 %# *! "ai0 in c#nn!c%i#n 5i% %! c#n0+c% #. %! *+&in!&&> !6a2"!& a$! c#&% %# ac,+i$! 2a'#$7& "!$2i%3 $!i&%$a%i#n c#&% #. %! *+&in!&&3 "!$c!n%a! %a6 #n &a!&3 !%c (&

PROFIT OR LOSS  T! 0i?!$!nc! *!%5!!n %! %#%a

inc#2! !a$n!0 an0 %! %#%a !6"!n&!& inc+$$!0 &"!& %! &+cc!&& #$ .ai+$! #. %! #$ania%i#n I. inc#2! i& $!a%!$ %an !6"!n&!&3 %! $!&+% i& an "$#8% I. inc#2! i& !&&!$ %an !6"!n&!&3 %! $!&+% i& a #&&

('

PROFIT OR LOSS E?!c% in %! acc#+n%in !,+a%i#n #. a

"$#8% R!1!n+!& 4 C#&%&  E6"!n&!&  N!% Inc#2! (L#&&) P3 4 P3  P3 A&&!%& Inc$!a&! Inc$!a&! Ca& P3 P3



O5n!$7& E,+i%' N!% Inc#2!

((

1 Ca& $!c!i1!0 .#$ $!1!n+! !a$n!0 Ma$c : A %#+$i&% i$!0 %! &!$1ic!& #. %! a!nc' .#$ a %#+$ in Ba+i#< Ca& #. P3 5a& $!c!i1!0 .$#2 %! %#+$i&% Ana'&i&: Inc$!a&! a&&!% ca& P3 5i% a c#$$!&"#n0in inc$!a&! in O5n!$7& !,+i%' .#$ &!$1ic!& $!n0!$!0 %# %! %#+$i&% ()

1

)0

1 Pai0 ca& .#$ !6"!n&!& inc+$$!0 Ma$c : Ca& 5a& "ai0 .#$ .##5in: a& an0 #i3 P> $!"ai$ #. ca$3 P3

Ana'&i&: D!c$!a&! in a&&!% ca& *' P3 5i% a c#$$!&"#n0in 0!c$!a&! in #5n!$7& !,+i%' .#$ !6"!n&!& inc+$$!0 )1

1

)+

1 R!1!n+! $!n0!$!0 #n acc#+n% Ma$c : M$< G$a' i$!0 %! &!$1ic!& #. %! a!nc' .#$ i& 1i&i%#$& an0 "$#2i&!0 %# "a' P3 #n Ma$c  Ana'&i&: Inc$!a&! in a&&!% acc#+n%& $!c!i1a*! *' P3 5i% a c#$$!&"#n0in inc$!a&! in #5n!$7& !,+i%' .#$ %! $!1!n+! !a$n!0 )3

1

)4

1 Pai0 ca& .#$ !6"!n&! inc+$$!0 Ma$c : Pai0 %!!"#n! *i .#$ P

Ana'&i&: D!c$!a&! in a&&!% ca& *' P 5i% a c#$$!&"#n0in 0!c$!a&! in #5n!$7& !,+i%' .#$ +%ii%' !6"!n&! inc+$$!0 )%

1

)&

1 R!1!n+! !a$n!0 5i% a 0#5n "a'2!n%3 *aanc! #n acc#+n% Ma$c @: T! Fac+%' C+* #. An!ic+2 Aca0!2' i$!0 %! &!$1ic!& #. %! a!nc' .#$ a %#+$ in Mania< A *i 5a& i&&+!0 %# %!2 .#$ P33  #. 5ic 5a& c#!c%!0 Ana'&i&: Inc$!a&! in a&&!% ca& P3 an0 acc#+n%& $!c!i1a*! P3 5i% a c#$$!&"#n0in inc$!a&! in #5n!$7& !,+i%' )' .#$ $!1!n+! #. P3

1

)(

1 C+&%#2!$7& acc#+n% c#!c%!0 in ca& Ma$c : M$ M$