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Interpreting Company Accounts - Mind Map
Mind Maps have been produced to introduce topics and give students an overview of key topics being studied. The maps can be viewed as a whole page or, for those who prefer a more linear approach, as a text version.
View larger version of the mind map.
- Window Dressing
- Presenting the accounts in the best light
- Timing of purchases/payments
- Definitions utilised
- Cash injections - where from?
- Exploiting accounting procedures
- Classification of 'extraordinary items'
- Adjust methods of calculating depreciation
- Varying residual values
- NOT illegal
- Not intended to deliberately deceive - fraud
- Depreciation
- Changing value of fixed assets
- Wearing out
- Obsolescence
- Degree and quality of maintenance
- Fixed assets become redundant
- Sale or 'scrap' value
- Methods
- Historical Value - initial purchase price
- Value at the end of the life of the asset - the residual value (RV)
- Life span of the asset
- Straight Line
- Historic cost - RV/Useful life
- Declining Balance
- Depreciating assets at a constant rate each year
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