February 2014 - ICE Exhibition in London

Sunday, April 13, 2014

Aristocrat Leadership changed

Executive Leadership

Board of Directors


Glossary of Formulas used in Accounting

Equity = Assets – Liabilities

Assets = Equity + Liabilities

Assets = Equity + (Revenue – Expenses) + Liabilities

Or (if we ‘add’ Expenses to each side)

Assets + Expenses = Equity + Revenue + Liabilities

Dividends (d) = Operating cash flow (C) – Capital outlays (I) + Net cash flow from debt owners (F) that is, d = C – I + F

Economic profit = (RNOA – cost of capital) × NOA Where, RNOA = OI/NOA

Where, PM = OI/Sales and ATO = Sales/NOA

Profit margin (PM) as:
PM = OI/Sales
Where OI = operating income after tax

Asset turnover (ATO)
ATO = Sales/NOA Where NOA = net operating assets

Overhead absorption rate would be calculated as:

Total overheads of a production department / Level of activity
Cost-volume-profit analysis
y = f(x)
Where y = the cost of the venue
x = the number of tickets sold

Production + Opening inventory = Sales + Closing inventory

Contribution margin (CM) is the difference between sales revenue (S) and variable costs (VC):

Contribution Margin = Sales – Variable Costs
CM = S – VC

The accounting rate of return (ARR) can be calculated as follows:

ARR (%) = (Average net profit /Initial investment) x 100

Where an investment is expected to provide constant cash flow each year, the payback period can be calculated as follows:

Payback period = Initial investment / Cash flow

Glossary - Acronyms used in Accounting

AASB - Australian Accounting Standards Board
ABR - Australian Business Register
ABN - Australian Business Number
A/C - Account
AS - Activity Statement
ASIC - Australian Securities and Investment Commission
ATI - Adjusted Taxable Income
ATO - Australian Taxation Office
BAS - Business Activity Statement
B/S - Balance Sheet
BSt - Bank Statement
CA - Chartered Accountant
C@B - Cash at Bank
C/F - Carry Forward
CFY - Current Financial Year
CGT - Capital Gain Tax
CPA - Certified Practicing Accountant
CWDV - Closing Written Down Value
DCL - Depreciation Car Limit
DRP - Dividend Reinvestment Plan/Scheme
EFT - Electronic Funds Transfer
ELD - Electronic Lodgement Declaration
ELS - Electronic Lodgement System
ETP - Employment Termination Payment
ETR - Education Tax Refund
FAO - Family Assistance Office
FAQ - Frequently Asked Questions
FBT - Fringe Benefit Tax
FY - Financial Year
GST - Goods and Services Tax
HECS - Higher Education Contribution Scheme
HELP - Higher Education Loan Programme
IAS - Instalment Activity Statement
ICAA - The Institute of Chartered Accountants Australia
ITAA - Income Tax Assessment Act
ITC - Input Tax Credits
ITR - Income Tax Return
KPI - Key Performance Indicator
LCT - Luxury Car Tax
LITO - Low Income Tax Offset
LFY - Last Financial Year
MAWTO - Mature Age Worker Tax Offset
M/L - Medicare Levy
MV - Market Value
M/V - Motor Vehicle
NIA - National Institute of Accountants
NOA - Notice of Assessment
NTAA - The National Tax and Accountants’ Association
OWDV - Opening Written Down Value
P&E - Plant and Equipment
P&L - Profit and Loss
PAYG-I - Pay As You Go Instalment
PAYG-W - Pay As You Go Withholding
PSB - Personal Services Business
PSE - Personal Services Entity
PSI - Personal Services Income
R&M - Repairs and Maintenance
RFB - Reportable Fringe Benefits
SATO - Senior Australian Tax Offset
SBDC - Small Business Development Corporation
SBE - Small Business Entity
SBR - Standard Business Reporting
SG - Superannuation Guarantee
SISA - Superannuation Industry Supervision Act
SISR - Superannuation Industry Supervision Regulations
SMSF - Self-managed Superannuation Fund
STS - Simplified Tax System
TAP - Tax Agent Portal
TD - Taxation Determination
TFN - Tax File Number
TIA - Taxation Institute of Australia
TPB - Tax Practitioners’ Board
TR - Taxation Ruling
WET - Wine Equalisation Tax
Y/E - Year End
YTD - Year to Date

Glossary of Terms used in Accounting

Balance sheet terminology

Balance sheet:
The financial statement that presents a snapshot of the company’s financial position as of a particular date in time. It’s called a balance sheet because the things owned by the company (assets) must equal the claims against those assets (liabilities and equity).

All the things a company owns in order to successfully run its business, such as cash, buildings, land, tools, equipment, vehicles, and furniture.

All the debts the company owes, such as bonds, loans, and unpaid bills.

All the money invested in the company by its owners. In a small business owned by one person or a group of people, the owner’s equity is shown in a Capital account. In a larger business that’s incorporated, owner’s equity is shown in shares of stock.

Another key Equity account is Retained Earnings
Tracks all company profits that have been reinvested in the company rather than paid out to the company’s owners. Small businesses track money paid out to owners in a Drawing account, whereas incorporated businesses dole out money to owners by paying dividends.

Here are a few terms related to the income statement that you’ll want to know:

Income statement:
The financial statement that presents a summary of the company’s financial activity over a certain period of time, such as a month, quarter, or year. The statement starts with Revenue earned, subtracts the Costs of Goods Sold and the Expenses, and ends with the bottom line — Net Profit or Loss.

All money collected in the process of selling the company’s goods and services. Some companies also collect revenue through other means, such as selling assets the business no longer needs or earning interest by offering short-term loans to employees or other businesses.

Costs of goods sold:
All money spent to purchase or make the products or services a company plans to sell to its customers.

All money spent to operate the company that’s not directly related to the sale of individual goods or services.

Some other common terms used in bookkeeping include the following:

Accounting period:
The time period for which financial information is being tracked. Most businesses track their financial results on a monthly basis, so each accounting period equals one month. Some businesses choose to do financial reports on a quarterly or annual basis. Businesses that track their financial activities monthly usually also create quarterly and annual reports.

Accounts payable:
The account used to track all outstanding bills from vendors, contractors, consultants, and any other companies or individuals from whom the company buys goods or services.

Accounts receivable:
The account used to track all customer sales that are made by store credit. Store credit refers not to credit card sales but rather to sales in which the customer is given credit directly by the store and the store needs to collect payment from the customer at a later date.

An accounting method used to track the aging and use of assets. For example, if you own a car, you know that each year you use the car its value is reduced (unless you own one of those classic cars that goes up in value). Every major asset a business owns ages and eventually needs replacement, including buildings, factories, equipment, and other key assets.

General Ledger:
Where all the company’s accounts are summarized. The General Ledger is the granddaddy of the bookkeeping system.

The money a company needs to pay if it borrows money from a bank or other company. For example, when you buy a car using a car loan, you must pay not only the amount you borrowed but also interest, based on a percent of the amount you borrowed.

The account that tracks all products that will be sold to customers.

Where bookkeepers keep records (in chronological order) of daily company transactions. Each of the most active accounts — including cash, Accounts Payable, and Accounts Receivable — has its own journal.

The way a company pays its employees. Managing payroll is a key function of the bookkeeper and involves reporting many aspects of payroll to the government, including taxes to be paid on behalf of the employee, unemployment taxes, and workman’s compensation.

Trial balance:
How you test to be sure the books are in balance before pulling together information for the financial reports and closing the books for the accounting period.