work sheet
multiple-column form used in preparing financial statements
not a permanent accounting record
may be a computerized worksheet using a electronic spreadsheet program such as excel
prepared using a five step process
use of worksheet is optional

Trial balance - adjustments-adjusted trial balance -income stm-balance sheet

stm of financial position
debit column cash / dividends
credit column accumulated depreciation accounts payable

income stm
debit column salaries and wages expense
credit column service revenue


Temporary accs
all revenue / expense accs dividends

Permanent accs
all asset / liability accs equity

closing entries formally recognize in the ledger the transfer of net income (or loss) and dividends to retained earnings
companies generally journalize and post closing entries only at the end of the annual accounting period
closing entries produce a zero balance in each temporary acc


the accing cycle
-analyze business transactions
-journalize the transactions
-post to ledger accs
-prepare a trial balance
-journalize and post adjusting entries
-prepare an adjustef trial balance
-prepare financial statements
-journalize and post closing entries
-prepare a post-closing trial balance

statement of financial position
presents a snapshot at a point in time
to improve understanding, companies group similar assets and similar liabilities together
Classification
assets intangible assets ppe long-term investments current assets
equity and liabilities
equity non-current liabilities current liabilities

order
intangible assets.
capitalized development costs    goodwill.   other intangible assets

PPE
land.  buildings structures machinery vehicles. other less accumulated depreciation

long-term investments
investment property. investments in associates.   other financial assets

current assets
inventories. trade and other receivables. derivative financial instruments. current tax assets. short-term investments. cash and cash equivalents
* accounts usually listed in the reverse order they expect to convert them into cash

equity
share capital -ordinary. share premium. other reserves(*less from equity) retained earnings

non-current liabilities
long-term debt. pension plans and  similar commitments. provisions. deferred tax liabilities. other non-current liabilities.

current liabilities
trade payables. current provisions other current financial liabilities. income taxes payable. current maturities of long-term debt. other current liabilities

reversing entries
A journal entry made on the first day of a new accounting period to undo the accrual type adjusting entries made prior to the preparation of the financial statements dated one day earlier.

IFRS officially use the term stm of financial position in its literature while in the US it is often refered to as the balance sheet
IFRS requires tha specific items be reported on the statement of financial position. whereas no such general standard exists om GAAP. however, under GAAP, public companies must follow US SEC regulations which require specific line items as well. In addition, specific GAAP standards mandate certain forms of reporting statement of financial position info.
The SEC guidelines are more detailed than IFRS
While IFRS companies often report non-current assets before current assets in their stms of financial position, this is never seen under GAAP.   Also, some IFRS companies report the subtotal \"net assets\", which equals total assets minus total liabilities. This practice is also not seen in under GAAP.

A key difference in valuation is that under IFRS, companies , under certain conditions, can report PPE at cost or at fair value, whereas under GAAP this practice is not allowed.
GAAP has many differences in terminology from what are shown in your textbook. For exm in the investment category shares are called stock. also note that Share Capital-Ordinary is referred to as Common Stock. In addition, the format used for stm of financial position presentation is often different between GAAP and IFRS