The Statement of Financial Position - ACCA Financial Accounting (FA) lectures
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19 Comments
J
James·
Thank you so much for your lectures, Sir.
I wonder if this lecture is still valid till July 2026.
I read one of the comments in the previous lecture that read "there would be changes beginning July 2026."
I am currently studying, taking all the lectures and planning to take the test in the middle of July. Would that still be okay?
J
John MoffatTutor·
There are no changes and the lectures are valid :-)
J
James·
thank you for your comment
S
Stessi·
Hello Mr. Moffat, are there situations where even in limited companies drawings are made and if so how would they be accounted for.
J
John MoffatTutor·
No. Money going to shareholders is called dividends and they are explained in the lectures on Limited Companies.
F
Faizan·
In the above lecture, in the case of Limited companies, he has been accumulating retained earnings but not share capita Why is this?
J
John MoffatTutor·
The share capital does not change (unless they issue more shares). The total capital (share capital + retained earnings) obviously does change as they make more profit, but the extra profit increases the retained earnings while the share capital stays the same.
A
An·
best wishes to you, mr Moffat
J
John MoffatTutor·
Thank you :-)
J
Joanne·
Hello John,
Quick question if it's alright, for a limited company, how is share capital determined if it's not provided? Do we use the accounting equation?
Many thanks,
T
tarmugi·
Thank you so much sir. May God bless you sir.
J
John MoffatTutor·
Thank you for your comment.
R
rm67·
Thank you very much Mr. John Moffat. As I understood the limited company has the different presentation from sole trader on equity because is important to show the retained earnings changed every year, which is extra from the share capital.
S
shakir7385·
Very well explained Mr. John. Just a short query here, why sole trader do not use the term "Retained earning" and presenting it the same why as in limited companies. I understand it is requirement for limited companies to present this why but why can't the sole trader follow the same rule? same presentation?
J
John MoffatTutor·
He/she can if they want to but it is a bit pointless since it is all owed to the owner.
I wonder if this lecture is still valid till July 2026.
I read one of the comments in the previous lecture that read "there would be changes beginning July 2026."
I am currently studying, taking all the lectures and planning to take the test in the middle of July. Would that still be okay?
Quick question if it's alright, for a limited company, how is share capital determined if it's not provided? Do we use the accounting equation?
Many thanks,