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.

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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 Modi03:34

  • 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 Modi05:28

  • 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 Modi08:50

  • 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 Modi06:24

  • 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 Modi05:16

  • 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 Modi03:13

  • 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 Modi04:16

  • 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 Modi04:57

  • 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 Modi08:39

  • 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 Modi04:16

  • 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 Modi04:02

  • 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 Modi07:05

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