1 Introduction to Accountancy -- The Users of Accounting Information -- Organisation of the Finance Function -- The Financial Statements -- The Interrelationships of the Financial Statements -- Accounts and the Banker -- This Book -- Further Reading -- 2 Accounting Principles and Practice I -- The Accounting Standards Committee -- The Accounting Requirements of the Companies Acts -- The Fundamental Concepts and Principles of Accounting -- Stocks and Work-in-Progress -- Standard accounting practice: stocks and work-in-progress (SSAP 9) -- Long-Term Contract Work-in-Progress -- Long-term contract work-in-progress and the Companies Act 1981 -- Base Stocks -- Research and Development Expenditure -- Foreign Currency Translation -- Conclusion: Accounting Principles and the Banker -- Further Reading -- 3 Accounting Principles and Practice II -- Depreciation and Accounting for Fixed Tangible Assets -- Accounting for Intangible Fixed Assets -- Accounting for Investments -- Accounting for Liabilities -- Accounting for Contingencies -- Accounting for Post Balance Sheet Events -- Conclusion: Significance for the Banker -- Further Reading -- 4 Taxation -- Corporation Tax -- Advance Corporation Tax -- Ascertaining Taxable Income -- Capital Gains -- Relief for Losses -- Close Companies -- Taxation of Partners and Sole Traders -- Deferred Taxation -- Franked and Unfranked Investment Income -- The Presentation of Taxation in Company Accounts -- Taxation and the Banker -- Further Reading -- 5 The Accounting Requirements of the Companies Acts -- The General Regulations Governing -- The Standard Formats for Accounts -- The Accounting Exemptions for Small and Medium-Sized Companies -- Distributable Profits under the Companies Acts -- The Disclosure of Transactions Involving Directors -- The Companies Acts and the Banker -- Further Reading -- 6 Group Accounts -- Accounting for Trade Investments -- Associated and Related Companies -- The Accounting Treatment of Associated Companies (SSAP 1) -- Accounting for Groups of Companies -- Bookkeeping Procedures for Consolidation -- Provisions of the Companies Act Concerning Group Accounts -- Standard Accounting Practice — Group Accounts — (SSAP 14) -- Merger and Acquisition Methods of Accounting for Amalagations -- Accounting for Foreign Currency Translations -- Conclusion: Group Accounts and the Banker -- Further Reading -- 7 Inflation and Accounting -- The Deficiencies of Historic Cost Accounting in a Period of Inflation -- SSAP 16 — Current Cost Accounting -- Criticisms of SSAP 16 in Practice -- The Statement of Intent and ED 35 -- Current Cost Accounts and the Banker -- Further Reading -- 8 Interpretation of Financial Accounts -- Preliminary Examination of the Annual Report -- Ratio Analysis -- Empirical Research on the Predictability of Company Accounts -- Conclusion -- Further Reading -- 9 Management Accounting and the Analysis of Profit Performance -- Management Accounts and Financial Accounts -- Examining a Budget -- Costs and Costing -- Profit Volume Analysis -- Control -- Absorption Costing and Marginal Costing -- Conclusion -- Further Reading -- 10 Planning and Controlling Working Capital and the Flow of Funds -- The Flow of Funds within a Business: The Working Capital Cycle -- Planning the Flow of Funds -- Controlling the Flow of Funds -- Calculating the Working Capital Cycle -- Statement of Source and Application of Funds -- Conclusion -- Further Reading -- 11 Investment Decisions -- The Time Value of Money -- DCF Methods of Investment Appraisal -- The Internal Rate of Return -- The NPV and IRR Methods Compared -- Conventional Methods of Investment Appraisal -- DCF and Conventional Methods of Investment Appraisal Compound -- Risk and Uncertainty in Capital Investment -- Inflation and Investment Appraisal -- The Administrative Framework for Investment Decisions -- Conclusion: Investment Decisions and the Banker -- Further Reading -- 12 Financing Decisions -- The Criteria for Selecting Finance -- Options and Alternatives -- Calculating the Cost of Capital -- Conclusion -- Further Reading -- 13 Company Valuation -- Earnings per Share -- Investment Ratios -- The Valuation of Companies: Theoretical and Practical Approaches -- Valuation of Private Companies and Partnerships -- The Accountant’s Approach to Valuing Goodwill -- The Accountant’s Report -- The Gone Concern Valuation -- Conclusion -- Further Reading -- 14 Accounting for Reorganisations and Reconstructions -- Share Capital and Share Premium -- Redeemable Shares -- Purchase by a Company of its Own Shares -- Reconstructions, Reorganisation and Liquidations -- Appendix 1 Information to be Given as Notes to the Accounts in Accordance with the Companies Act -- Appendix 2 Present Value Table.
