Controlling

Carmen Bonaci

CARMEN BONACI CONTROLLING

CGB, 2012

Introductory aspects
Course and seminar:
Carmen Bonaci, PhD. E-mail: carmen.bonaci@econ.ubbcluj.ro Office: 256 Consultations:
Wednesday: 11.30 Thursday: 19.00

CARMEN BONACI CONTROLLING

CGB, 2012

Introductory aspects
Class assessment
Course and seminar activity (not simply attending!) (optional: 2 points) Projects and homework during the semester (personal proposals in relation to class topics) (optional: 1 point) Final exam (mandatory: 100%) (quizzes, open questions)

CARMEN BONACI CONTROLLING

CGB, 2012

Introductory aspects
Class activity
Course: weekly (Wednesday 17.30 Room 234) Seminar: uneven (odd) weeks (Wednesday 16.35 Room 234) Topics will be approached on both a conceptual and practical level Homework sent through e-mail Projects - presented References: library, course presentations, TBA

CARMEN BONACI CONTROLLING

CGB, 2012

Financial statements - revision

References: 1. IASB, Conceptual framework for financial reporting, 2010 2. IASB, IAS 1 Presentation of financial statements

Objective of Financial Statements

The objective of general purpose financial statements is to provide information about the financial position, financial performance, and cash flows of an entity that is useful to a wide range of users in making economic decisions (IASB, IAS 1).
CARMEN BONACI CONTROLLING CGB, 2012

Financial statements - revision

Components of Financial Statements A complete set of financial statements should include (IASB, IAS 1):
a statement of financial position (balance sheet) at the end of the reporting period a statement of comprehensive income for the reporting period (or an income statement and a statement of comprehensive income) a statement of changes in equity for the reporting period a statement of cash flows for the reporting period notes, comprising a summary of accounting policies and other explanatory notes
CARMEN BONACI CONTROLLING CGB, 2012

Financial statements - revision

Financial position The elements directly related to the measurement of financial position are assets, liabilities and equity (IASB, CF).

CARMEN BONACI CONTROLLING

CGB, 2012

Financial statements - revision

Financial position An asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity (IASB, CF). Exemplification.

CARMEN BONACI CONTROLLING

CGB, 2012

Financial statements - revision

Financial position A liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits (IASB, CF). Exemplification.

CARMEN BONACI CONTROLLING

CGB, 2012

Financial statements - revision

Financial position Equity is the residual interest in the assets of the entity after deducting all its liabilities (IASB, CF). Exemplification.

CARMEN BONACI CONTROLLING

CGB, 2012

Financial statements - revision

Performance Profit is frequently used as a measure of performance or as the basis for other measures, such as return on investment or earnings per share (IASB, CF). The elements directly related to the measurement of profit are income (revenues) and expenses (IASB, CF).

CARMEN BONACI CONTROLLING

CGB, 2012

Financial statements - revision

Performance Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants (IASB, CF). Exemplification.

CARMEN BONACI CONTROLLING

CGB, 2012

Financial statements - revision

Performance Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants (IASB, CF). Exemplification.

CARMEN BONACI CONTROLLING

CGB, 2012

Financial statements - revision

Recognition of the elements of financial statements Recognition is the process of incorporating in the balance sheet or income statement an item that meets the definition of an element and satisfies the criteria for recognition (IASB, CF).

CARMEN BONACI CONTROLLING

CGB, 2012

Financial statements - revision

Recognition criteria An item that meets the definition of an element should be recognised if (IASB, CF):
it is probable that any future economic benefit associated with the item will flow to or from the entity; and the item has a cost or value that can be measured with reliability

CARMEN BONACI CONTROLLING

CGB, 2012

Financial statements - revision

Recognition criteria Information is reliable when it is complete, neutral and free from error (IASB, CF) (see the qualitative characteristics of useful financial information).

CARMEN BONACI CONTROLLING

CGB, 2012

Thank you for attending this class.

CARMEN BONACI CONTROLLING

CGB, 2012