Accounting Fundamentals
Accounting is a process of identifying, measuring, recording and communicating financial transactions and information about an organisation. Follow this pathway to develop an understanding of the principles of accounting and the core concepts that underpin it.
CPD credits earned
Certificates
Watch all the videos and pass the test to obtain a certificate showing your completion of this Pathway. Certificates can be shared directly to your LinkedIn profile and social media accounts.
12 videos • 1 hour 6 minutes
The History of Accounting
In the first video on this series, Saket describes the evolution of accounting, tracing back 7000 years, noting key developments which have shaped accounting into the process we know today.
Saket Modi • 03:34
Introduction to IFRS
In the second video on this series, Saket outlines the importance of the International Financial Reporting Standards (IFRS), a global set accounting rules that govern the reporting of transactions and other accounting events in the financial statements.
Saket Modi • 05:28
Accounting Balance Sheet
In this video, Saket breaks down the different categories of the balance sheet including assets, liabilities and equity. He also outlines two different ways of presenting the balance sheet, the 'current and non-current' presentation, and the 'liquidity' presentation, and when it is appropriate to use each of them.
Saket Modi • 08:50
Accounting Income Statement
The income statement shows an entity’s sources of revenue, expenses incurred and the resulting profit or loss for the period, usually one year. In the fourth video of this series, Saket highlights what is included within the income statement, and the different ways of presenting the information.
Saket Modi • 06:24
Double-entry Accounting
In the fifth video of the Accounting Basics series, Saket explores the notion of double-entry bookkeeping, discussing the numerous rules associated with it along with its impacts on the financial statements.
Saket Modi • 05:16
Accrual Accounting
In the next video of this series, Saket outlines the two methods of accounting to recognise transactions, the accruals basis and the cash basis.
Saket Modi • 03:13
Return on Equity
The return on equity is a key financial metric which measures the magnitude of returns a company generates for its shareholders. In this video, Saket outlines its uses, and the way in which it is calculated.
Saket Modi • 04:16
Earnings Per Share
The earnings per share or EPS is a measure of the company’s financial performance during the period. Saket further explains the Price to Earnings ratio, and how both of them are calculated.
Saket Modi • 04:57
Corporate Cash Flow Statement
The cash flow statement provides useful information to analysts and investors in regards to the uses and sources of a firms cash. In this video, Saket outlines all the components within the statement.
Saket Modi • 08:39
Controlling vs Non-Controlling Interest
In this video, Saket defines and compares the terms controlling and non-controlling interest, and discusses under which circumstances they may arise.
Saket Modi • 04:16
Accounting Liquidity Ratios
Liquidity ratios are essential indicators of a firm's financial health, they measure the ability of a company to meet its short-term obligations. Saket stresses the importance of this ratio and highlights the calculations of; the current ratio, quick ratio, and the cash ratio.
Saket Modi • 04:02
Accounting Profitability Margin Ratios
The Profitability Margin Ratios allow users of the financial statements to assess the profits being generated. Within this video, Saket outlines the benefits of using these ratios, and how we calculate; gross profit margin, EBITDA margin, EBIT margin, and the net profit margin.
Saket Modi • 07:05
