By Emile Woolf International
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Extra resources for ACCA F3 (INT) Financial Accounting Study Text
Revenue expenditure is reported as expenditure in the income statement. com for Q/As, Notes & Study Guides 31 Paper F3: Financial accounting (International) interest of $8,000 on the loan for the first year. The loan is a non-current liability (and part of the long-term ‘capital’ of the business) and the interest is an expense. 3 Revenue income and capital receipts Revenue income is income arising from the business operations of an entity or from its investments (such as interest received on cash savings).
Where there is no relevant accounting standard for particular aspects of financial reporting, preparers of financial statements are expected to apply the general principles and concepts of accounting that are set out in the IASB Framework. A role of IFRSs is to encourage business entities in all countries to apply similar principles, concepts and accounting methods, so that the financial statements of all companies can be compared. com for Q/As, Notes & Study Guides © EWP Chapter 1: The context and purpose of financial reporting and understand the financial statements of companies in any country, and make comparisons.
The value of total assets in the top part of the statement of financial position must always equal the total of equity plus liabilities. 7 $ 20,000 30,000 5,000 10,000 15,000 $ 400,000 100,000 80,000 580,000 55,000 635,000 440,000 170,000 25,000 635,000 The income statement: income and expenses The income statement reports the financial performance of an entity during a period of time, such as the financial year. The elements in an income statement are income and expenses. The difference between income and expenses is profit or loss.
ACCA F3 (INT) Financial Accounting Study Text by Emile Woolf International