Yaghi For Finance Consultant& Business Solution

10/09/2020

💢Income Statement Elements💢

The income statement reports the results of an entity’s operations over a period of time,such as a year.

The Income EquationIncome (Loss) = Revenues + Gains – Expenses – Lossesb.

The following are the elements of an income statement:

1) Revenues are inflows or other enhancements of assets or settlements of liabilities (orboth) from delivering or producing goods, providing services, or other activities thatqualify as ongoing major or central operations.

2) Gains are increases in equity (or net assets) other than from revenues or investments by owners.

3) Expenses are outflows or other usage of assets or incurrences of liabilities (or both)from delivering or producing goods, providing services, or other activities that qualifyas ongoing major or central operations.

4) Losses are decreases in equity (or net assets) other than from expenses ordistributions to owners.

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30/08/2020

💢💢Elements of the Balance Sheeta💢💢

a- Assets are resources controlled by the entity as a result of past events. They representprobable future economic benefits to the entity.
1) Examples include inventory; accounts receivable; investments; and property, plant,and equipment.

b. Liabilities are present obligations of the entity arising from past events. Their settlement isexpected to result in an outflow of economic benefits from the entity.
1) Examples include loans payable, bonds issued by the entity, and accounts payable.

c. Equity is the residual interest in the assets of the entity after subtracting all its liabilities.
1) Examples include a company’s common stock, preferred stock, and retained earnings.
2) Equity is affected not only by operations but also by transactions with owners, such asdividends and contributions.
a) Investments by owners are increases in equity of a business entity. They resultfrom transfers of something of value to increase ownership interests. Assets arethe most commonly transferred item, but services also can be exchanged forequity interests.
b) Distributions to owners are decreases in equity. They result from transferringassets to owners.
A distribution to owners decreases the ownership interest inthe company.

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29/08/2020

💮 Statement Of Financial Position 💮

💢💢Overviewa.

a-The statement of financial position, also called the balance sheet, reports the amountsofassets (items of value), liabilities (debt), and equity (net worth) and their relationships at amoment in time, such as at the end of the fiscal year.

1) It helps users assess liquidity, financial flexibility, the efficiency with which assets areused, capital structure, and risk.

b. The basic accounting equation presents a perfect balance between the entity’s resourcesand its capital structure.

1) The entity’s resources consist of the assets the entity deploys in its attempts to earn areturn.

2) The capital structure consists of the amounts contributed by creditors (liabilities) andinvestors (equity).

Assets = Liabilities + Equityc.

The equation is based on the proprietary theory. According to this theory, equity in anenterprise is what remains after the economic obligations of the enterprise are deductedfrom its economic resource.💢💢

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27/08/2020

💢💢Accrual Basis of Accounting💢💢

Financial statements are prepared under the accrual basis of accounting. Accrualaccounting records the financial effects of transactions and other events and circumstances when they occur rather than when their associated cash is paid or received.
1) Revenues are recognized in the period in which they were earned even if the cash willbe received in a future period.
2) Expenses are recognized in the period in which they were incurred even if the cash will be paid in a future period.

NOTE: Under the cash basis, revenues are recognized when cash is received andexpenses are recognized when cash is paid. Under GAAP, financial statements cannot be prepared under the cash basis of accounting...

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26/08/2020

💢💢Financial Statement Relationships💢💢

a. Financial statements complement each other. They describe different aspects of the same transactions, and more than one statement is necessary to provide information for a specific economic decision.
b. The components (elements) of one statement relate to those of other statements. Among the relationships are those listed below.
1) Net income or loss from the statement of income is reported and accumulated in theretained earnings account, a component of the equity section of the statement offinancial position.
2) The components of cash and equivalents from the statement of financial position arereconciled with the corresponding items in the statement of cash flows.
3) Items of equity from the statement of financial position are reconciled with thebeginning balances on the statement of changes in equity.
4) Ending inventories are reported in current assets on the statement of financial positionand are reflected in the calculation of cost of goods sold on the statement of income.
5) Amortization and depreciation reported in the statement of income also are reflected iIn asset and liability balances in the statement of financial position.

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25/08/2020

25/08/2020

💢💢Users of Financial Statements💢💢

 Direct Users:-
-Investors or potential investors.- Suppliers and creditors.-Employees.-Management.

 Indirect Users:-

-Investors need information to decide whether to increase, decrease, or obtainan investment in a firm.
-Creditors need information to determine whether to extend credit and under what terms.
-Financial advisor and analysts need financial statements to help investors evaluate particular investments.
-Stock exchanges need financial statements to evaluate whether to accept a firm’s stock for listing or whether to suspend the stock’s trading.
-Regulatory agencies may need financial statements to evaluate the firm’s conformity with regulations and to determine price levels in regulated industries.

 External Users:

Use financial statements to determine whether doing business with the firm will be beneficial.

-Investors need information to decide whether to increase, decrease, or obtainan investment in a firm.
-Creditors need information to determine whether to extend credit and under what terms.
-Financial advisors and analysts need financial statements to help investors evaluate particular investments.
-Stock exchanges need financial statements to evaluate whether to accept a firm’s stock for listing or whether to suspend the stock’s trading.
-Regulatory agencies may need financial statements to evaluate the firm’s conformity with regulations and to determine price levels in regulated industries.

 Internal users:

-Management needs financial statements to assess financial strengths and deficiencies, to evaluate performance results and past decisions, and to plan for future financial goals and steps toward accomplishing them.
-Employees want financial information to negotiate wages and fringe benefits based on the increased productivity and value they provide to a profitable firm.

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24/08/2020

T💢💢he Objective of General-Purpose Financial Reportin💢💢

1-Useful in making decisions about providing resources to the reporting entity.2- The information reported relates to the entity’s economic resources and claims to financial position which helps to evaluate liquidity, solvency, financing needs, and the probability of obtaining financing.3- Users need to differentiate between changes in economic resources and claims arising from (1) the entity’s performance (income statement) and (2) other eventsand transactions, such as issuing debt and equity (balance sheet).(1) Information about financial performance is useful for:a) Understanding the return on economic resources, its variability, and itscomponents;b) Evaluating management; andc) Predicting future returns.d) For general-purpose financial statements to be useful to external parties, they must be prepared in conformity with accounting principles that are generally accepted in the United States (GAAP).e) Financial accounting differs from management accounting.1) Management accounting assists management decision making, planning, and control. Management accounting information is therefore primarily directed to specific internal users, and it ordinarily need not follow GAAG.
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22/08/2020

💢الشهادات المهنية في المحاسبة💢

إن كل دولة تحدد هيئة تقوم بمنح شهادة محاسب قانوني، تخول صاحبها ممارسة المحاسبة القانونية على أراضيها. وأشهر هذه الشهادات هي شهادة المحاسب القانوني المعتمد محاسب قانوني معتمد الأمريكية وشهادة محاسب قانوني (Chartered Accountant) البريطانية وشهادة المحاسب المحترف المعتمد البريطانية CPA. كما أن هناك شهادات تتبع لمختلف مجالات المحاسبة والتدقيق منها:

شهادة محاسب إداري معتمد سي إم إيه.
شهادة مدقق داخلي معتمد CIA.
شهادة مدقق نظم معلومات معتمد CISA.
شهادة محلل مالي معتمد.
شهادة مدير الخزانة المعتمد CTP.
شهادة محاسب عربي مهني معتمد (ACPA) الصادرة من المجمع العربي للمحاسبين القانونيين.
شهادة محاسب قانوني إسلامي (C**A) الصادرة عن هيئة المحاسبة والمراجعة للمؤسسات المالية الإسلامية.
شهادة مراقب ومدقق شرعي (CSAA) الصادرة عن هيئة المحاسبة والمراجعة للمؤسسات المالية الإسلامية

20/08/2020

🛑🛑🛑What are new accounting standards?🛑🛑🛑

🛑🛑🛑The government has notified a new accounting standard Ind AS 116 that will bring in more transparency in recognition and disclosures about leases in companies' balance sheets, a senior official said Sunday. ... Ind AS 116 is the equivalent of IFRS (International Financial Reporting Standards) 116.🛑🛑🛑

20/08/2020

((((What are the basic accounting standards?))))

((((An accounting standard is a common set of principles, standards, and procedures that define the basis of financial accounting policies and practices. Accounting standards apply to the full breadth of a entity's financial picture, including assets, liabilities, revenue, expenses and shareholders' equity.))))