Chapter 2 shows how to produce a 5-year plan and discusses capital structures\u00a0and the importance of getting gearing right. The fictional business woman,\u00a0Amanda, raises equity through a wealthy business angel who operates as if he\u00a0were a venture capital firm. This chapter discusses the basic tools of analysis\u00a0to enable Amanda to assess her business and which ratios are of utmost importance\u00a0in certain circumstances. Finally, Amanda is made aware that controlling\u00a0cash is a key requirement in any business and why the Cash Flow Statement is\u00a0probably the most important statement in a set of accounts. The reader learns\u00a0the possible exit strategies for a small business in this position.<\/p>\n
Chapter 3 covers financial reporting and the International Financial Reporting\u00a0 Standards (IFRS) used by quoted companies that replaced UK GAAP (generally
\naccepted accounting principles). We see that the Profit and Loss Account is\u00a0replaced by an Income Statement and that the Balance Sheet and Cash Flow\u00a0Statement use different terminology and have a different format than before.\u00a0We discuss the essential changes from UK GAAP to IFRS being the move\u00a0away from historical cost accounting to fair value accounting and how the new\u00a0system is less prudent than the old.<\/p>\n
In Chapter 4, Amanda receives a telephone call that leads to the sale of her\u00a0business and a new company is set up by her acquirer. She becomes a director\u00a0of the new company: after all taxes are paid she has over \u00a31 million in the bank\u00a0and considers building an external portfolio. This chapter illustrates how IFRS\u00a0accounts might be interpreted and how such evaluations can sometimes give\u00a0the assessor a small advantage in the market place. Different methods used\u00a0to value companies are illustrated. Four case studies featuring real events and\u00a0real company accounts illustrate the points made in this chapter.<\/p>\n","protected":false},"excerpt":{"rendered":"
This book explains the methods used in accounting and business valuations\u00a0by using the fictional story of a new start-up business, from original concept to\u00a0eventual acquisition. Enamoured with entrepreneurial spirit, a business woman\u00a0buys her family\u2019s secret salad dressing recipe from her brother and sets up a\u00a0business.<\/p>\n
Chapter 1 illustrates double entry bookkeeping and how to prepare\u00a0a Trial Balance, Profit and Loss Account and Balance Sheet and also discusses\u00a0the working capital cycle, asset management and how to negotiate with banks.\u00a0At the forefront of this chapter is how the combination of inexperience and\u00a0insufficient funds can lead to near disaster, which is clearly illustrated via the\u00a0fictional story.<\/p>\n","protected":false},"featured_media":9877,"template":"","meta":{"inline_featured_image":false},"product_brand":[],"product_cat":[10379],"product_tag":[10303,10336,10337],"class_list":{"0":"post-9153","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-altax-library-en","7":"product_tag-accounting","8":"product_tag-financial-accounting","9":"product_tag-valuation","11":"first","12":"instock","13":"sale","14":"shipping-taxable","15":"purchasable","16":"product-type-simple"},"yoast_head":"\n