The document provides information about types of companies and final accounts preparation for limited companies in Hong Kong. It discusses key aspects such as types of limited companies (private and public), share capital structure, means of funding, reserves, appropriation of profits, and bonus share issues. The final accounts include the trading and profit & loss account and balance sheet, with details on treatment of expenses like debenture interest and dividends for limited companies.
Presentation by Pooya Hedaytinia, PhD at the University of Rennes 1 (France), at the FogGuru training Business Modeling and Development in November 2019.
statement of cash flow and statement of retained earnings.sabaAkhan47
its a lecture on statement of cash flow....in this lecture the following things are explained...
1) objectives of cash flow.
2) purpose and uses of cash flow.
3) methods to determine net cash flow
4)relation between different statements...
5) statement of retained earnings,
6) and a case study of D'Leon Inc.
7)security,debt security, equity security, amortization,accruals.
Presentation by Pooya Hedaytinia, PhD at the University of Rennes 1 (France), at the FogGuru training Business Modeling and Development in November 2019.
statement of cash flow and statement of retained earnings.sabaAkhan47
its a lecture on statement of cash flow....in this lecture the following things are explained...
1) objectives of cash flow.
2) purpose and uses of cash flow.
3) methods to determine net cash flow
4)relation between different statements...
5) statement of retained earnings,
6) and a case study of D'Leon Inc.
7)security,debt security, equity security, amortization,accruals.
Financial statement analysis (or financial analysis) is the process of reviewing and analyzing a company's financial statements to make better economic decisions. These statements include the income statement, balance sheet, statement of cash flows, and a statement of changes in equity.
IFRS for SME update ICAC June 2014 Andrew Brathwaithe and Cyril Soeri Cyril Soeri
On the 32nd Conference of the Institute of Chartered Accountants of the Caribbean in 2014, we presented the recent amendments made in IFRS for SME and introduced the "Guide for Micro-sized Entities Applying the IFRS for SMEs" published by the IASB. Special thanks goes out to Andrew Brathwaithe of the SME Implementation Group (working and advising group of the IASB) in his valuable insights for this presentation.
Financial statement analysis (or financial analysis) is the process of reviewing and analyzing a company's financial statements to make better economic decisions. These statements include the income statement, balance sheet, statement of cash flows, and a statement of changes in equity.
IFRS for SME update ICAC June 2014 Andrew Brathwaithe and Cyril Soeri Cyril Soeri
On the 32nd Conference of the Institute of Chartered Accountants of the Caribbean in 2014, we presented the recent amendments made in IFRS for SME and introduced the "Guide for Micro-sized Entities Applying the IFRS for SMEs" published by the IASB. Special thanks goes out to Andrew Brathwaithe of the SME Implementation Group (working and advising group of the IASB) in his valuable insights for this presentation.
how can i use my minded pi coins I need some funds.DOT TECH
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Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
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Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
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@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
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Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
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Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
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A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
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@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
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The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
2. 2
Introduction
Limited companies are so popular compared with
partnership business.
Limited companies enable larger businesses to be
formed, and help an owner safeguard his private
assets
The owners’ (shareholders’) loss is only limited to
the amount of shares they bought
The law governing the preparation and
publication of final accounts of limited companies
in Hong Kong is the Companies Ordinance of
Hong Kong
4. 4
Unlimited Company
Some businesses which are small in size
or provide highly specialized professional
services
E.g. firms of solicitors or accountants are
not limited liability companies
5. 5
Limited Company
The capital of a limited company is divided into
shares
The par value of each share can be $1,$5 or
other
A person who buy the shares, become the
member of company called shareholder
Their liabilities of a company can be limited by
shares.
This means that shareholders are not obliged to
introduce funds to pay off the debts of the
company beyond the amount of share capital
they have purchased
7. 7
Private Company
The number of members is limited to 50
Prohibited to subscribe for any shares or
debentures to the public
Strict the right to transfer its shares
8. 8
Public Company
All public companies’ shares are traded on
the Stock Exchange
The ones that are traded in are known as
‘listed companies’ meaning that their
shares have prices quoted (i.e. quoted
shares) on the Hong Kong Stock Exchange
They have to comply with Hong Kong
Stock Exchange requirement
11. 11
Preference Shares
Preference shares are entitled to a fixed
percentage of dividends before any
ordinary dividends are paid
They usually do not have voting rights
The different types of preference shares
are:
Cumulative preference shares
Non-cumulative preference shares
13. 13
Non-cumulative preference shares
If the profits are insufficient to pay the
dividends, the unpaid dividends cannot be
carried forward to later years
14. 14
Ordinary Shares
The dividends of ordinary shares are not
fixed. They depend on the return of the
company
Ordinary shareholders are paid only after
all other claim (e.g. loan interest and
preference share dividends) have been
met
Ordinary shareholders usually have voting
rights
15. 15
Debentures
Debentures are long-term loans evidenced
by deeds which set out the rate of interest
payable and the date of redemption
16. 16
Reserves
Reserves are profits or gains which accrue
to ordinary shareholders
They are undistributed profits which have
been retained within the company
There are two types of reserves:
Revenue reserves
Capital reserves
17. 17
Revenue reserves
They are undistributed trading profits
They can be used to pay dividends
E.g. the balance on the profit and loss
account and general reserve
18. 18
Capital reserves
They are gains or profits arising from non-
trading or non-operating activities
They are not available for distribution as
dividends
E.g. Share premium, revaluation reserve,
capital redemption reserve and debenture
redemption reserve
19. 19
Share premium
When a company issues shares at a price
above par, the excess amount is called
share premium
The reserve is restricted to be used in the
following ways:
To write off preliminary expenses
To write off expenses of issuing shares
To write off commission paid and discounts on
shares
To pay up a bonus issue
To provide premium on redemption of
debentures
21. 21
Capital redemption reserve and
Debenture redemption reserve
This arises as a result of a company
redeeming its shares or debentures by
using its retained profits
22. 22
Capital Structure
Authorized
Capital
It is the maximum amount of share
capital which the company is
allowed to issue
Issued Capital It is the nominal value of a portion
of the authorized capital which has
been taken up (purchased) by
shareholders
Called Up Capital It is the amount of issued capital
which the company has called to
be paid
Paid Up Capital It the amount of issued capital
which has actually been received
Calls in Arrears It the amount of called up capital
which has not been received
24. 24
Final accounts
For internal reporting and management
purposes, the final accounts of the limited
liability companies are similar as those of
the sole trader and partnership with the
exception of certain types of expenses and
the appropriation of net profit
25. 25
XX Ltd. Company
Trading and Profit and Loss Account for the year ended 31 Dec XXXX
Sales X
Less: Returns inwards X
(X)
Less: Cost of Goods Sold
Opening Stock X
Add: Purchases X
Add: Carriage inwards X
Less: Returns outwards (X)
Less: Closing Stock (X) X
Gross profit X
Add: Gains on disposal X
X
Less: Expenses
Rent X
Directors’ remuneration X
Debenture interest (% * Debenture) X X
Profit for the year before taxation (PBIT) X
Less: Taxation (X)
Profit for the year after taxation (PAT) X
26. 26
Add: Retained profit b/f X
X
Less: Appropriations:
Goodwill written off X
Preliminary expenses X
Transfer to general reserve X
Preference dividend – interim (paid) X
- proposed (final) X
Ordinary dividend - interim (paid) X
- proposed (final) X X
Retained profit c/f X
27. 27
Balance Sheet as at 31 Dec XXXX
Fixed Assets Cost Dep Net
Machinery X X X
Furniture X X X
X X X
Current Assets
Stock X
Debtors X
Bank X
X
Less: Current Liabilities
Creditors X
Proposed dividend X
Debenture interest accrued X
Provision for taxation X
Working Capital X
X
Financed by:
Share Capital Authorized Issued
XXXX Ordinary Shares of $1 each X X
XXXX 8%Preference Shares of $1 each X X
X X
No. of shares Par value
29. 29
Special types of expenses
Debenture interest
Director’s remunerations/fees/emolument
30. 30
Debenture interest
The amount of the debenture interest will
be calculated according to the pre-set
percentage of debenture as the interest
expenses of the company
31. 31
Trial Balance as at 31 Dec 20-1
Dr Cr
10% Debentures 10000
Debenture interest 5000
Ans.:
Trading and profit and loss a/c for the year ended 31 Dec 20-2
$ $
Gross profit X
Less: Expenses
Debenture interest (10000*10%) 10000
Balance Sheet as at 31 Dec 21-1
$ $
Less: Current Liabilities
Paid debenture interest
Actual debenture interest
Accrued expenses
(1000-5000) 5000
Debenture interest not yet paid
Example
32. 32
Director’s fee/emolument
Directors fee and director’s emolument are
salaries and services charges of the
directors of the limited company
It will be treated as one of expenses in the
profit and loss account
33. 33
Appropriation of net profit
Taxation payable on profit
Amounts written off as goodwill
Preliminary expenses
Retained profit from last year/after next
year
Dividends
Transfer to/(from) reserve
34. 34
Taxation payable on profits
Profit tax is not an expenses, it is an
appropriation of profits
However, for the purpose of presentation
and to make the accounts more
understandable, it is not shown with the
other appropriation
It is shown as a deduction form profit for
the year before taxation (i.e. this is the
net profit figure) to show the net result
(i.e. profit for the year after taxation)
35. 35
Amounts written off as goodwill
Goodwill, in a company, may have been
written off it from time to time.
When this is done, the amount written off
should be shown in the appropriation
account
36. 36
Preliminary expenses
When a company is formed, there are
many kinds of expenses concerned with its
formation
These include, for example, legal
expenses and various government taxes
These cannot be shown as an asset in the
balance sheet, and can be charged to the
appropriation account
37. 37
Retained profit to next year/ from last
year
All profits may not be appropriated during
a period
This then will be balance on the
appropriation account as brought forward
from the previous year or carried forward
to next year
38. 38
Dividends
Net profit from ordinary activities of the
business of a company will be distributed
to its shareholders of preference shares
and ordinary shares according to the level
of net profit and the dividend policy of the
company
Dividend can be divided into:
Interim/paid dividend
Final/proposed dividend
39. 39
Interim/Paid Dividend
Interim dividend is the paid dividend to
the shareholders in the middle of the
financial year
The amount of interim dividend will be
subject to the performance of the business
in the first half of the financial year
Descriptions Book-keeping entries
Interim dividend paid Dr Interim Dividend
Cr Bank
Transfer interim dividend
paid to appropriation
account
Dr Profit & loss appropriation
Cr Interim Dividend
40. 40
Proposed/Final Dividend
The amount of proposed dividend will be
subjected to the performance of the
business in whole financial year and the
shareholders’ approvals in the Annual
General Meeting
Proposed dividend will be paid in the early
of next financial year, it will be treated as
one of appropriations to the shareholders
in the profit & loss account of current
financial year and as ‘current liabilities’ in
the balance sheet
41. 41
Descriptions Book-keeping entries
Transfer proposed
dividend to appropriation
account
* Proposed dividend will
be shown in balance
sheet under the heading
of current liabilities
Dr Profit & loss
appropriation
Cr Proposed dividend
42. 42
Transfer to /(from) Reserve
Part of the net profit for the financial year
may be transferred from the appropriation
account to the reserves to meet the future
requirements or specific reason
Revenue reserve can be transferred back
to appropriation account for dividends
purposes in the future financial period
43. 43
Descriptions Book-keeping entries
Transfer part of net profit
from appropriation
account to specific
reserves
Dr Profit & loss
appropriation account
Cr Reserves
Transfer specific reserves
back to appropriation
account
Dr Reserves
Cr Profit & loss
appropriation
44. 44
Example
Trial Balance as at 31 Dec 2000(extract)
Dr Cr
400000 ordinary shares of $0.5 each, fully paid 200000
250000 10% preference shares of $1 each, fully paid 250000
General reserves 15000
Interim ordinary dividend 5000
Interim preference dividend 8000
Additional information:
• The director proposed a final dividend of $0.05 per ordinary share
• The director resolved to transfer $5000 to the general reserve
45. 45
Ans.:
Trading and profit and loss a/c for the year ended 31 Dec 20-2
$ $
Net profit X
Add: Retained profit from last year X
X
Less: Appropriation
Balance Sheet as at 31 Dec 21-1
$ $
Less: Current Liabilities
Dividend owning(17000+20000) 37000
Dividend not yet paid to shareholders
Preference dividend – interim 8000
- final (250000*0.1-8000) 17000
Ordinary dividend - interim 5000
- final (400000*0.05) 20000
Transfer to general reserve 5000
46. 46
Bonus Shares/Script Issue
Bonus shares are ‘free’ shares issued to
shareholders without any cash being paid
for them
The reserves are utilised for the purpose
The accounting entry is:
Dr Reserve/Share premium/Retained earnings
Cr Ordinary share capital
47. 47
Example
$
20000 Ordinary Share Capital of $1 each 20000
Reserves 12000
A bonus issue of 1 for 4 were made. (i.e. 1 bonus share for every 4
shares already held)
Ans:
Bonus issue (20000/4)=5000 shares
The entry: Dr Reverse (5000*$1) $5000
Cr Ordinary share capital $5000
Ordinary share capital (20000+5000) 25000
Reserve (12000-5000) 7000