• Accounting Equation: Assets = Liabilities + Equity

• Debits and Credits

• Assets – its true corporate meaning ( + = debit, – = credit)

o Depreciable fixed tangible assets

o Intangible assets and goodwill

o Financial assets

o Deferred tax assets

o Prepayments

o Inventory

o Receivables

o Cash

• Liabilities – getting it right, corporate finance wise ( – = debit, + = credit)

o Loans

o Provisions

o Employee benefit obligations

o Payables

o Tax liabilities

o Other liabilities

• Equity

o Share capital

o Share premium

o Retained Earnings, cumulative Net Profit (Revenue – Expenses, cumm)

 Revenue ( – = debit, + = credit)

 Expenses ( + = debit, – = credit)

o Reserves ( – = debit, + = credit)

• Chart of Accounts (what to debit and what to credit)

o Assets

o Liabilities

o Shareholder’s equity

o Revenues

o Expenses

o Gains

o Losses

• General Ledger (GL)

• Cost Centres

• Accrual based accounting

o Depreciation

o Amortization

o Interest Expense

o Prepayments

o Prepaid/Unearned/Deferred Revenue

o Tax Computation – accounting tax vs government tax

• Trial Balance – adjusted/accrual based

• Income Statement (Statement of Profit or Loss)

o Functional and practical interpretation

o Income Statement ratios for company financial health analysis

• Balance Sheet (Statement of Financial Position)

o Functional and practical interpretation

o Balance Sheet ratios for company financial health analysis

o Company Efficiency

o Working Capital Management

• Cashflow Statement (Statement of Cashflow)

o Functional and practical interpretation

o Cashflow Management

o Free Cashflow

• Investment Decisions

• Financial Planning