Presentation on Accounting and Bookkeeping Principles and Practices

This presentation, delivered by CPA Vicent Laurian, provides a comprehensive overview of bookkeeping and accounting principles. It covers essential topics such as the nature of accounting, the difference between accounting and bookkeeping, and the different types of business organizations. The presentation delves into the five fundamental elements of accounting: assets, liabilities, owner's equity, income, and expenses, and explains the accounting equation. It further explores Generally Accepted Accounting Principles (GAAP), including the business entity, going concern, monetary unit, historical cost, accrual, matching, consistency, materiality, prudence, and substance over form principles. The presentation also covers accounting systems, including journal and ledger entries, and double-entry bookkeeping, with examples. It concludes with an overview of accounting for non-current assets like Property, Plant, and Equipment (PPE), Investment Property, and Intangible Assets, referencing relevant IAS standards. This presentation is a valuable resource for anyone looking to understand the core concepts and practices of accounting and bookkeeping. It's a great resource for students to understand the core concepts and practices of accounting and bookkeeping. Desklib provides past papers and solved assignments to help students excel.

BOOKKEPING & ACCOUNTING
(A flexible learning Program)
PRESENTATION
BY
CPA VICENT LAURIAN
LECTURER & BUSINESS CONSULTANT
Email: [e-mail]
Cell: [phone]/784 862733

Learning Outcomes:
By the end of this course you should be able to:
 Explain the nature of accounting and bookkeeping
 Apply the general acceptable principles of accounting in your daily
Accounting work
 Record transactions in the correct book of accounts
 Prepare Financial statements
 Account for Accruals and Prepayments
 Account for Non current assets (PPE, Investment property &
Intangible assets)
 Account for Trade and other receivables
 Cash and Bank balances (Bank Reconciliation)
 Explain Unrecorded liabilities
 Explain Deferred Tax implications in the financial statements

UNIT 1: NATURE OF ACCOUNTING
By the end of this unit you should be able to:
 Explain the difference between accounting and
bookkeeping
 Describe the different types of business organizations
 Describe the (5)fundamental elements of accounting
 Use the accounting equation to show the relationship
between the (5) fundamental elements of accounting

Bookkeeping and Accounting
What is Bookkeeping?
 Bookkeeping is a systematic method of maintaining
accurate and complete records of daily financial
transactions of a business.
 It is the first step of the accounting process. Bookkeeping
uses basic accounting processes. (i.e. From Journals,
Ledgers to the Trial balance)

Bookkeeping and Accounting
What is Accounting?
 Accounting is the process of analysing, classifying,
recording, summarizing, communicating and
interpreting business transactions and events expressed
in monetary terms.
 It is much wider than bookkeeping.
 An accountant sets up the accounting system that is
used by the bookkeeper to keep records and supervises
the work of the bookkeeper.

Types of Business Organisations
sole traders (sole or single proprietorship)
partnership,
company, and
co-operatives.
PRIVATE SECTOR – IFRS/IAS by IASB
PUBLIC SECTOR – IPSAS by IPSASB

The 5 Elements of Accounting
 Assets
 Liabilities
 Owners Equity
 Income
 Expenses
CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING
(CONSTITUTION) BY THE IASB

ASSET:
Resource controlled by the entity as a result of past
event from which economic benefits are expected to
flow to the entity
LIABILITY:
Present obligation of the entity as a result of past
event
Obligation: a duty which the entity has no practical
ability to avoid

EQUITY:
Residual interest in the assets of a business after
deducting all its liabilities
EQUITY = ASSETS – LIABILITIES
OR
ASSETS = EQUITY + (incomes –expenses) + LIABILITIES
Equity holders = residual claimants

EXPENSES:
Decrease in economic benefits inform of cash
outflows, decrease in assets or increase in liabilities
which results into decrease in equity other than
that relating to distributions (dividends) to equity
holders.

The Accounting Equation
 The accounting equation is a simple way of showing
how the three elements of accounting (assets, liabilities
and owner’s equity) relate with each other.
ASSETS = EQUITY
The equity in the above formula can be divided into two
forms:
 Equity that the owner has borrowed from a bank
 Equity from the business owner’s sources
ASSETS = LIABILITIES + OWNER’S EQUITY
An accounting equation is displayed in what is known as a
BALANCE SHEET (STATEMENT OF FINANCIAL POSITION).

UNIT 2: ACCOUNTING PRINCIPLES AN
CONCEPTS
These principles and standards are collectively
known as ‘Generally Accepted Accounting
Principles’ (GAAP).
By the end of this unit you should be able to
apply accounting principles and concepts in
the reporting of business transactions in your
daily accounting work