Final Accounts Preparation
This unit is about preparing final accounts for sole traders and partnerships and helping students to become aware of alternative business organisation structures. The unit provides the background knowledge and skills that a student needs in order to be capable of drafting accounts for sole traders and partnerships, and it provides the background knowledge of the regulations governing company accounts. A successful student will be able to complete tasks while being aware of potential ethical issues and know how to report information effectively. Students will be able to recognise the different types of organisations that need to prepare financial statements and will understand why such statements are important to users in the business environment. The financial accounting techniques and knowledge that they have already acquired will be developed to prepare accounting records when the records are incomplete, and students will become familiar with mark-up and margin.
Students will recognise special accounting requirements for partnerships. They will become aware of legislation and regulations governing financial statements and will be able to recall and apply ethical knowledge to situations arising during the preparation of accounts. This unit also introduces students to the terminology and formats used by accountants in the financial statements of companies, working with the International Financial Reporting Standards (IFRS) terminology that is utilised across AAT.
- Distinguish between the financial recording and reporting requirements of different types of organisation
- Explain the need for final accounts and the accounting and ethical principles underlying their preparation
- Prepare accounting records from incomplete information
- Produce accounts for sole traders
- Produce accounts for partnerships
- Recognise the key differences between preparing accounts for a limited company and a sole trader