10 articles
Granting EMI share options feels like a cash-free way to reward senior staff, but accounting standards say otherwise. Learn how IFRS 2 and FRS 102 require you to expense a £40,000 EMI grant over its vesting period, with worked journals, a leaver pitfall, and the deferred tax issue most SMEs miss.
When a major customer collapses just weeks after your year end, the real question is not when they failed but whether warning signs existed before your balance sheet date. This article explains how adjusting and non-adjusting events under FRS 102 and IAS 10 determine whether you rewrite your December figures or simply disclose the risk, with a full worked example and journal entry.
Most SME owners understand their profit and loss account and balance sheet, but the Statement of Changes in Equity often goes unread. It reconciles exactly why shareholders' funds moved — through profit, dividends, share issues, or revaluations — and misunderstanding it can lead to illegal dividends, bad lending decisions, or a false sense of business health.
When a business sells for more than the value of everything you can see and touch, the difference has a name: goodwill.…
Your profit and loss account tells you whether you made money. Your balance sheet tells you what you own and what you…
If your business sells a physical product — or buys in goods to resell — then Cost of Goods Sold is one…
If you have ever stared at your bank balance thinking the business is doing fine, only to discover at year end that…
Running out of cash while your profit and loss looks healthy is one of the most common — and most avoidable —…
A profitable business can still run out of cash — and that is one of the most common reasons small businesses fail.…
Understanding financial statements is crucial for anyone learning accounting or managing a business. Among these statements, the balance sheet holds a special…
