book

Financial Accounting

by Robert Nothhelfer

September 2017

Beginner to intermediate

301 pages

7h 14m

English

De Gruyter Oldenbourg

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1.1 Purpose of accounting1.1.1 The fundamental question and the fundamental equation1.1.2 Financial and managerial accounting1.1.3 Content of accounting/basic terms1.2 Elements of financial statements1.2.1 Balance sheet1.2.2 Income statement and changes-in-equity statement1.2.3 Cash flow statement1.2.4 Notes and management report1.3 Accounting procedures1.3.1 Accounts, debiting, crediting1.3.2 Journalizing and posting1.3.3 Opening and closing of accounts1.3.4 Specific topics of double-entry accounting1.3.4.1 Taxes1.3.4.2 Received price reductions1.3.4.3 Granted price reductions
2.1 Legal framework2.1.1 Legal regulations2.1.2 Applicability and simplifications2.1.2.1 Applicability of Commercial Code depending on legal form2.1.2.2 Applicability of Commercial Code depending on size class2.1.3 Consequences of legal form and size classes2.1.4 Consolidated financial statements2.2 Reporting conception2.3 Generally Accepted Accounting Principles2.3.1 Overview2.3.2 Principles of documentation2.3.3 Principles of accounting2.3.3.1 General principles2.3.3.2 Recognition principles2.3.3.3 Measurement principles2.4 Balance sheet: general recognition rules2.4.1 Recognition of assets2.4.2 Initial measurement of assets2.4.2.1 Acquisition costs2.4.2.2 Production costs2.4.3 Recognition of liabilities2.4.4 Measurement of liabilities2.5 Stock taking/inventory2.6 Definition of income and expense
3.1 Balance sheet3.1.1 Structure3.1.2 Recognition prohibitions3.1.3 Non-current assets3.1.3.1 Classification non-current–current3.1.3.2 Subsequent measurement3.1.3.3 Presentation3.1.3.4 Intangible assets3.1.3.5 Tangible assets3.1.3.6 Financial assets3.1.4 Excursus: accounting for financial instruments according to IFRS 3.1.5 Current assets3.1.5.1 Inventories3.1.5.2 Accounts receivable3.1.5.3 Securities and cash/cash equivalents
3.1.6.1 Subscribed capital and capital reserves3.1.6.2 Revenue reserves and retained earnings3.1.7 Provisions3.1.7.1 Accounting for provisions3.1.7.2 Specifics for pension provisions3.1.8 Debt/payables3.1.9 Contingent liabilities3.1.10 Specific topics3.1.10.1 Deferrals and accruals3.1.10.2 Deferred taxes3.1.10.3 Hedge accounting3.1.10.4 Accounting for leases
3.3 Notes3.3.1 Overview3.3.2 General information (§ 284)3.3.3 Additional information about balance sheet and income statement3.3.4 Additional information not related to balance sheet or income statement3.4 Cash flow statement3.4.1 Purpose and methods3.4.2 Structure of cash flow statement3.5 Management report3.5.1 Purpose and principles3.5.2 Structure and content3.5.3 Upcoming extended CSR reporting
4.1 Purpose4.2 Legal requirements4.2.1 Mandatory preparation4.2.2 Applicable rules4.3 Elements and content4.4 General principles4.5 Consolidation scope4.6 Consolidation procedures4.6.1 Full consolidation4.6.1.1 Comparability of data4.6.1.2 Currency conversion4.6.1.3 Capital consolidation4.6.1.4 Liability consolidation4.6.1.5 Consolidation of intercompany profits4.6.1.6 Income consolidation4.6.1.7 Deferred taxes on consolidation procedures4.6.2 Proportional consolidation 4.6.3 Associated companies/at-equity consolidation4.7 Consolidated notes
5.1 Bookkeeping and basic terms5.2 Exercises on fundamental concepts and GAAP 5.3 Exercises on non-current assets
5.5 Exercises on equity5.6 Exercises on provisions5.7 Exercises on debt5.8 Exercises on deferred items and deferred taxes5.9 Exercises on income statement and cash flow statement

Overview

Every German student of business administration needs to have a basic understanding of accounting according to German GAAP, and thanks to globalization many courses about German accounting are nowadays held in English to improve the language skills of the students.

In addition many foreign subsidiaries of German companies have to prepare their part of consolidated financial statements according to German GAAP. So far, these professionals can rely on German literature only.

The first part of the book offers a compact introduction to financial statements according to German GAAP, the second part comprises exercises on individual topics with solutions and case studies for in-depth and effective learning.

This introduction provides ideal support for German-speaking students taking Englishspeaking lectures in the field and is furthermore valuable for professionals looking for explanations when preparing the data for consolidated financial statements.

Includes exercises and case studies for practice
Ideal textbook for students of German Universities attending English-speaking lectures in financial management
Ideal introduction for professionals with a succinct explanation and additional support with a glossary and vocabulary