In this lesson, you learn that adjusting entries align revenues and expenses with the correct accounting period so that financial statements accurately reflect business performance. You explore the three main types of adjusting entries—accruals for revenues and expenses incurred but not yet recorded, deferrals for prepaid expenses and unearned revenue, and depreciation adjustments that spread the cost of long-term assets over time. You review detailed examples of journal entries for each adjustment type and analyze how missing entries can lead to misstated financial results and inaccurate reporting, ultimately understanding that mastering these entries is essential for ensuring transparency, compliance, and informed decision-making in accounting.

In this lesson, you learn how bank reconciliation ensures that your internal records match your bank statement by identifying discrepancies such as outstanding checks, deposits in transit, bank fees, and recording errors. You explore why regular reconciliation is essential for preventing fraud, maintaining accurate cash balances, and ensuring reliable financial reporting. You follow a step-by-step process to compare your cash book with the bank statement, adjust for timing differences, and correct errors. A detailed real-world example reinforces your understanding by demonstrating how to prepare an adjusted cash book and a bank reconciliation statement. Ultimately, you appreciate how routine bank reconciliation supports effective cash flow management and overall financial accuracy.

In this lesson, you learn about managing cash flow by understanding Accounts Receivable (the money customers owe your business) and Accounts Payable (the money your business owes to suppliers). You explore how AR serves as a valuable asset predicting future cash inflows, while AP represents your liabilities and impacts cash outflows. You also learn how to record these transactions and monitor key metrics like AR Days, AP Days, and the Cash Operating Cycle to ensure your business remains financially healthy.

In this lesson, you learn how IAS 2 guides inventory accounting to effectively track, value, and manage business stock. You explore the three key inventory types—raw materials, work-in-progress, and finished goods—and understand their impact on cash flow and profitability. You also study essential valuation methods, including FIFO, LIFO, and weighted average cost, and compare periodic and perpetual inventory systems. Additionally, you learn how to record inventory transactions and assess their effects on the balance sheet and income statement, ensuring accurate financial reporting and informed decision-making.

In this lesson, you learn how IFRS 13 establishes a consistent, transparent framework for measuring the fair value of assets and liabilities. You explore key principles like the exit price concept, the distinction between principal and most advantageous markets, and the highest and best use of non-financial assets. You also study the fair value measurement hierarchy—Levels 1, 2, and 3—and compare various valuation techniques including market, income, and cost approaches. Additionally, you discover the importance of fair value disclosures for enhancing comparability and informed decision-making.

In this lesson, you learn how to account for the decrease in asset value over time through depreciation for tangible assets and amortisation for intangible assets. You explore different depreciation methods—such as straight-line, reducing balance, and units of production—and understand how to calculate amortisation using the straight-line method. You'll also see how these processes are recorded with journal entries and how they impact key financial statements like the income statement and balance sheet. Interactive exercises help you practice these techniques, preparing you for future topics like asset disposal and impairment.

In this lesson, you learn how IAS 1 sets the standard for preparing and presenting financial statements, ensuring transparency, comparability, and a true and fair view of a company's financial health. You explore the five key components—the balance sheet, income statement (including profit or loss and other comprehensive income), statement of changes in equity, cash flow statement, and accompanying notes—and understand how each part contributes to comprehensive financial reporting. You'll see how the balance sheet reflects the fundamental equation of assets, liabilities, and equity, while the income statement and cash flow statement provide insights into operational performance and liquidity. Practical examples and discussion questions help you grasp the importance of consistent classification and disclosure practices, enabling stakeholders to make informed decisions. Ultimately, you develop a clear understanding of how standardized financial reporting under IAS 1 supports regulatory compliance and effective financial analysis.