Financial Reporting After a Business Combination

In this presentation, we will discuss financial reporting, after a business combination, get ready to account with advanced financial accounting, financial reporting, after a business combination, show the combined entity starting on the date of combination and going forward. So in other words, we probably when we’re imagining this type of scenario, we’re going to say, Okay, I see how this all works out here. And then we imagine this happening if we have a calendar year in a calendar, fiscal year, January through December, we say, Alright, the purchase happens, it will just apply it to January out through December. But obviously, that’s not always the case here. What happens when we have that interim kind of transaction where the purchase happened sometime in the middle of the of the fiscal year then that adds some bit of a complication. So you want to think about this in terms of a clean, you know, year, if it happened at the beginning of the fiscal year in combination, and then you know, what would happen if it did not happen at the beginning of the fiscal year, so if a combination of During a fiscal period, revenue earned by the acquire II before the combination is not reported in revenue for that combined enterprise. So you can see that can add a bit of complication with regards to that reporting

Closing Process Explained

Hello in this lecture we’re going to talk about the objectives of the closing process the closing process will happen after the financial statements have been created. So we will have done the journal entries where we will have compiled those journal entries into a trial balance, and then we will have made the financial statements. And then as of the end of the period in this case, we’re going to say as of December, when we move into the next time period, January, what we need to do is close out some of the temporary accounts those accounts including the income statement and the draws account so that we can start the new period from start in a similar way as if we were trying to see how many miles we could drive say in a month. If we wanted to Vince in December, and then see how many miles we’re going to drive in January of next year.

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Accounting Building Blocks

Hello in this lecture we will discuss the accounting building blocks and the double entry accounting system. At the end of this we will be able to define and describe the double entry accounting system, write down the accounting equation and define each individual part of it, define and describe debits and credits, define a balance sheet and list its parts define an income statement list its parts and explain the relationship between the balance sheet and the income statement. Okay, so starting off every business and accounting software uses the double entry accounting system. So the double entry accounting system, it’s kind of like the math behind the calculator, every software is going to use it. In order to understand what the system is doing, we need to understand the double entry accounting system.

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Statement of Cash Flows Direct Method Vs Indirect Method

In this presentation, we will compare and contrast the direct method versus the indirect method for the statement of cash flows. It’s important to note that when we’re comparing the direct and indirect methods, we’re really only talking about the top part, the operating activities portion of the statement of cash flows. In other words, the investing activities and financing activities and in result will remain the same, we’re going to end up with the same result, which of course, will be the Indian cash that we can tie out to the balance sheet. And we’ll have the change of cash here, which is really kind of the what we’re looking for in the statement of cash flows. What’s going to differ is the operating activities, why are they going to differ? Why would we have the operating activities differ? Remember that the operating activities have to do with kind of the income statement you can think of it basically as the income statement being reformatted to a cash flow statement versus an accrual statement. So the income statement that we use is on an accrual basis, and we recognize that Revenue when it’s earned rather than when cash is received expenses when expenses are incurred rather than when cash is paid, that’s gonna be on an accrual basis.

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