Financial Accounting: Preparing Financial Statements Course - Bahrain

Financial Accounting: Preparing Financial Statements Course Outline

Guided Learning Hours: 150

Module 1: Understand the Accounting Principles Underlying Final Accounts Preparation

• Primary Users of Final Accounts
  • Primary Users of Final Accounts Existing and Potential Investors Lenders Other Creditors
  • How Final Accounts Are Used by the Primary Users
• Framework of Accounting Underlying the Preparation of Final Accounts
  • Accounting Principles Accruals Going Concern Business Entity Materiality Consistency Prudence Money Measurement
• Qualities of Useful Financial Information
  • Fundamental Qualitative Characteristics Relevance Representation Faithful Representation
  • Enhancing Qualitative Characteristics Comparability Verifiability Timeliness Understandability
  • Importance of Ensuring Financial Statements Are Free from Material Misstatement
  • Importance of Accountant’s Ethical Principles and Professional Scepticism When Preparing Financial Statements

Module 2: Understand the Principles of Advanced Double Entry Bookkeeping

• Use of the Accounting Equation
  • Importance of the Accounting Equation for Keeping Records
  • Effect of Accounting Transactions
  • Calculate Elements of the Accounting Equation
• Classification of Ledger Accounts
  • Classification of General Ledger Accounts Into
• Purpose and Use of Books of Prime Entry and Ledger Accounting
  • Daybooks Sales Returns Purchases Purchase Returns Discounts Allowed Discounts Received Cash Book Journal
  • Information Recorded in Daybooks
  • Use of Daybooks to Update Ledger Accounts Including VAT
  • Ledgers and Their Interaction General Ledger Subsidiary Ledgers Receivables Payables
  • Control Accounts
  • Accounting Software Automates Transfer of Data into Control Accounts
  • Prepare Ledger Accounts Using Double Entry Principles
• Carry Out Financial Period End Routines
  • Period End Accounts Balanced Differently by Classification Income Expense Asset Liability Capital
  • Accounting Software Automates Period End Routine
  • Verify Balances with Records and Reconciliations Inventory Bank Supplier Payables Receivables Asset Register
  • Transfer or Carry Balances in Ledger Accounts
  • Determine Validity of Transactions for Records

Module 3: Implement Procedures for the Acquisition and Disposal of Non-Current Assets

• Importance of Prior Authority for Capital Expenditure
  • Why Authorisation Is Necessary
  • Who in an Organisation Gives Authority?
• Importance of Classifying Expenditure into Capital or Revenue
  • IFRS Standards for Non-Current Assets IAS 16
  • Definitions of Cost Useful Life Residual Value Depreciable Amount Carrying Amount
  • Items Included in Cost of Non-Current Assets under IFRS
  • Revenue Expenditure Excluded from Non-Current Assets Value
  • Only Capitalise Expenditure Beyond Set Organisational Level
  • Effect of Capitalisation on Profit Loss and Financial Position
  • Categorise Items into Revenue Capital Expenditure
• Record Acquisitions and Disposals of Non-Current Assets
  • Purpose and Content of Asset Register Verification Reconciliation with Ledger
  • Meaning of Disposals Account Balance
  • Part Exchange as Form of Funding
  • Non-Current Asset Registers May Be Software Based or Spreadsheet Based
  • Gains Losses on Disposal at Period End
  • Update Asset Register for Acquisitions Disposals
  • Record Acquisitions Disposals in General Ledger
  • Treat VAT per Organisation Registration

Module 4: Prepare and Record Depreciation Calculations

• Calculate Depreciation
  • Depreciation as Accruals Principle
  • Allocation of Depreciable Amount over Useful Life
  • Software or Spreadsheets Automate Depreciation
  • Calculate Depreciation Using Straight Line Percentage Useful Life Residual Value or No Residual Value Full Year or Pro Rata
  • Calculate Depreciation Using Diminishing Balance Method
• Record Depreciation
  • Record Depreciation in Asset Register and General Ledger with Journal Entries
  • Reconcile Asset Register with General Ledger Balances

Module 5: Record Period End Adjustments

• Record Accruals and Prepayments of Income and Expenditure
  • Adjustments for Accruals Prepayments as Accruals Principle
  • Difference Between Amount Paid Received vs Recognised in Profit Loss
  • Impact of Adjustments Reversals on Ledger Accounts
  • Accrued Prepaid Balances Recognised as Assets Liabilities
  • Software Automates Recurring Accrual Prepayment Entries
  • Calculate Prepayment Accrual Amounts
  • Account for Accruals Prepayments via Journal General Ledger
  • Account for Reversal of Accruals Prepayments from Prior Period
• Record Irrecoverable Debts and Allowances for Doubtful Receivables
  • Allowances for Doubtful Receivables as Accruals Principle
  • Differences Between Irrecoverable Debts Specific General Allowances
  • Write Off Recovery of Irrecoverable Debts
  • Calculate New Allowances and Adjust Existing Allowances
  • Record Debts Allowances in Journal
• Record Inventory
  • Accounting for Inventory as Accruals Principle
  • Effect of Valuation Changes on Profit Loss
  • IFRS Standards for Inventory Valuation IAS 2
  • Inventory Valued at Lower of Cost and NRV per Item
  • Expenditure Types in Valuation
  • Software Automates Recording Tracking Valuation of Inventory
  • Determine Closing Inventory per Standards
  • Record Value of Closing Inventory in Journal
• Considerations for Recording Period End Adjustments
  • When Making Period End Adjustments
  • Apply Professional Scepticism Integrity and Objectivity to Prevent Misleading and Inaccurate Information
  • Effects of Including Misleading or Inaccurate Period End Adjustments
  • Respond Appropriately to Period End Pressures

Module 6: Produce and Extend Trial Balance

• Prepare an Initial Trial Balance
  • Certain Accounts Can Carry Either a Debit or Credit Balance
  • Importance of Producing Trial Balance to Check for Errors
  • Limitations of Trial Balance as Check for Errors
  • Accounting Software Completes Transfer of Data into Trial Balance
  • Transfer Balances from Ledger Accounts into Correct Debit or Credit Columns
  • Correct Errors Not Shown by Initial Trial Balance
  • Correct Errors Shown by Initial Trial Balance Using Suspense Account
• Prepare an Adjusted Trial Balance
  • Accounting Software Automatically Recalculates Balances After Adjustments
  • Place Adjustments Correctly into Columns of Adjusted Trial Balance
• Complete Extended Trial Balance
  • Importance of Fully Extended Trial Balance for Preparation of Financial Statements
  • Difference Between Entries in Extended Trial Balance for Sole Traders and Partnerships
  • Complete SPL and SFP Columns of Extended Trial Balance
  • Balance Off Extended Trial Balance by Calculating Profit or Loss Figure

Module 7: Produce Financial Statements for Sole Traders and Partnerships

• Prepare Financial Statements for Sole Traders
  • Purpose of SPLs
  • Purpose of SFPs
  • How Financial Statements Are Linked to Accounting Equation
  • How SPL and SFP Are Related
  • Terminology: Sales Revenue Net Purchases Cost of Sales
  • Prepare SPLs
  • Prepare SFPs Using Net Assets Presentation
• Opening and Closing Capital for Sole Traders
  • Reasons for Movements in Capital Balance During Period
  • Account for Drawings Capital Injections Profits or Losses
• Produce SPL for Partnerships
  • Difference Between SPL for Partnership and Sole Trader is Appropriation Account
  • Purpose and Content of Partnership Appropriation Account
  • How SPL is Linked to Appropriation Account
  • Prepare Appropriation Account
  • Calculate Partner Share of Profit or Loss
  • Prepare Partnership SPL
• Produce SFP for Partnerships
  • Difference Between SFP for Partnership and Sole Trader is Capital and Current Accounts
  • Difference Between Partner Current Accounts and Appropriation Account
  • Difference Between Partner Current Accounts and Capital Account
  • Account for Drawings
  • Prepare Partner Current Accounts
  • Prepare Partnership SFP Using Net Assets Presentation

Module 8: Interpret Financial Statements Using Profitability Ratios

• Calculate Profitability Ratios
  • Relationship Between SPL and SFP Regarding Net Profit
  • Link Between Gross Profit Margin and Mark Up
  • Meaning of Profitability Ratios
  • Calculate Ratios: ROCE Gross Profit Margin Net Profit Margin Expense Revenue Percentage
• Interpretation of Profitability Ratios
  • Why Calculating Ratios Can Aid Planning and Decision Making
  • Factors Causing Changes in Ratios and Differences Between Businesses
  • Whether Ratio is Better or Worse than Comparative Ratio
  • Importance of Professional Scepticism to Interpretation

Module 9: Prepare Accounting Records from Incomplete Information

• Identify Missing Figures
  • Calculate Missing Figures Relating to Income Expenses Assets Liabilities and Capital
• Mark Up and Margin
  • Difference Between Margin and Mark Up
  • Calculate Margin and Mark Up to Determine Missing Figures
  • Use Cost of Sales Calculations to Determine Missing Figures
• Reasonableness of Figures when Information is Incomplete
  • Whether Given Figure is Reasonable
  • Why Actual and Calculated Balance Can Differ
  • Importance of Checking Information Produced by Accounting Software
  • Apply Professional Scepticism

Who Should Attend This Financial Accounting: Preparing Financial Statements Course?

This course is designed for individuals advancing their accounting skills as part of the AAT Level 3 Diploma in Accounting. It is particularly useful for those in roles such as:

• Accountants
• Finance Managers
• Bookkeepers and Accounting Assistants
• Business Owners and Entrepreneurs
• Auditors and Compliance Officers
• Graduates Pursuing Accounting Qualifications

Prerequisites of the Financial Accounting: Preparing Financial Statements Course

Delegates are recommended to have completed the AAT Level 2 Certificate in Accounting or hold equivalent knowledge of accounting principles. This foundation ensures readiness for the advanced concepts covered in this course.

Financial Accounting: Preparing Financial Statements Course Overview

The Financial Accounting: Preparing Financial Statements course equips learners with essential skills to produce accurate financial reports. It covers preparing income statements, balance sheets, and cash flow statements using advanced double-entry bookkeeping principles.

This 150-hour training provides practical knowledge of the full accounting cycle, including asset management, depreciation, adjustments, trial balance consolidation, and preparing financial statements. Learners also gain the ability to interpret reports and work with incomplete records.

Successful completion supports progression within the full AAT Level 3 Diploma in Accounting and paves the way for career growth in accounting and finance roles. It also strengthens practical expertise, giving learners the confidence to apply financial reporting skills in real-world scenarios.

Financial Accounting: Preparing Financial Statements Course Objectives

• Understand the structure and purpose of financial statements
• Apply accounting principles to prepare accurate reports
• Ensure compliance with IFRS and GAAP standards
• Analyse financial data to support business decisions
• Communicate financial performance effectively

What’s Included in This Financial Accounting: Preparing Financial Statements Course

• World-Class Training Sessions from Experienced Instructors
• Course Completion Certificate
• Digital delegate pack