Accounting concepts A to Z

Accounting essentials General ledger explained: accounts, posting, review What a general ledger is, how it differs from journals and subledgers, how posting and control accounts work, and how to review a GL, with worked EUR examples. 9 min read Accounting essentials Accounts payable vs accounts receivable Accounts payable vs accounts receivable: definitions, journal entries, ageing, DSO and DPO with worked EUR figures, plus the controls that stop costly errors. 9 min read Accounting essentials What is depreciation? Methods and worked examples What depreciation is, how to calculate straight-line, reducing balance, sum-of-years' digits and units of production, with EUR schedules and IAS 16 rules. 10 min read Accounting essentials Retained earnings explained: formula and examples Retained earnings explained: the formula, a worked EUR roll-forward with dividends and an error correction, closing entries, deficits and changes in equity. 9 min read Accounting essentials Gross profit vs net profit: formulas and margins Gross profit vs net profit explained with formulas, a worked EUR income statement, gross and net margin, markup vs margin, and what really moves each figure. 9 min read Accounting essentials What is EBITDA? Formula, margin and pitfalls What EBITDA means, how to calculate EBITDA, EBIT and EBITDA margin from a worked EUR income statement, and how IFRS 16 and IFRS 18 change the number. 9 min read Accounting essentials Cash flow statement: the indirect method, worked How to prepare a cash flow statement using the indirect method under IAS 7, with a full EUR example that reconciles to the cash movement and the IFRS 18 changes. 10 min read Accounting essentials Deferred revenue accounting: entries and schedule Deferred revenue explained: why unearned revenue is a liability, IFRS 15 contract liabilities, journal entries and a worked monthly release schedule in EUR. 9 min read Accounting essentials VAT accounting entries with worked examples VAT journal entries explained: output and input VAT, the VAT control account, reverse charge, irrecoverable VAT and bad-debt relief, with worked EUR examples. 10 min read Accounting essentials Invoice vs receipt vs bill: the differences explained Invoice, receipt, bill, pro forma, credit and debit note compared: who issues each, what the law requires on it and the journal entry each one triggers. 11 min read Accounting essentials Petty cash accounting: imprest, entries, controls Petty cash accounting explained: the imprest system, journal entries for set-up, top-up and shortages, a worked EUR reconciliation, VAT receipts and the controls. 9 min read Accounting essentials Cost accounting basics: methods and examples Cost accounting explained: direct and indirect costs, job vs process costing, overhead absorption, marginal costing and standard cost variances, worked in EUR. 9 min read Accounting essentials Goodwill and intangible assets under IFRS How goodwill is calculated under IFRS 3, when IAS 38 lets you capitalise an intangible, amortisation versus impairment testing, with worked examples in EUR. 11 min read Accounting essentials Provisions and contingent liabilities (IAS 37) When to recognise a provision or disclose a contingent liability under IAS 37, with worked warranty, lawsuit, onerous contract and restructuring examples. 10 min read Accounting essentials Consolidation accounting: a worked group example How to consolidate a parent and subsidiary under IFRS 10: control, goodwill, non-controlling interest, intragroup eliminations and unrealised profit, in EUR. 10 min read Accounting essentials Intercompany accounting: entries and reconciliation Intercompany accounting explained: mirror entries, matching and reconciling balances, netting, consolidation eliminations, FX and transfer pricing basics. 10 min read