1. © Pearson Education Limited 2003 Atrill, McLaney: Accounting and Finance for Non-Specialists, 4th edition OHT 4.1 Accounting for limited companies OBJECTIVES You should be able to: Describe the main features of the owner’s claim in a limited company Discuss the nature of the limited company Explain how the profit and loss account and balance sheet of a limited company differ in detail from that of a sole proprietorship business Outline the statutory and non-statutory rules that surround accounting for limited companies

2. © Pearson Education Limited 2003 Atrill, McLaney: Accounting and Finance for Non-Specialists, 4th edition OHT 4.2 Share issues Long-term loans Long-term finance Retained profits Sources of long-term finance for the typical company

3. © Pearson Education Limited 2003 Atrill, McLaney: Accounting and Finance for Non-Specialists, 4th edition OHT 4.3 Not available for dividend Share capital (at nominal or par value) Capital reserves Revenue reserves Available for dividend Availability for dividends of various parts of the shareholders’ claim

4. © Pearson Education Limited 2003 Atrill, McLaney: Accounting and Finance for Non-Specialists, 4th edition OHT 4.4 Company law Accounting standards External accounting rules Financial Services Authority rules Sources of accounting regulations for a UK limited company listed on the London Stock Exchange

5. © Pearson Education Limited 2003 Atrill, McLaney: Accounting and Finance for Non-Specialists, 4th edition OHT 4.5 The relationship between the shareholders, the directors and the auditors elect report elect review account Shareholders Auditors Directors