Introduction to Accounting for limited companies
Why limited companies?
Even though there are several businesses in the UK that trade as sole proprietorships, like partnerships and in other forms, overwhelmingly the most significant business form is the limited company. In terms of wealth created, sales revenue generated, number of people used, exports attained and practically any other measure, limited companies dominate the business scene. The limited companies are matter to a huge deal of regulation, specifically in the areas of finance and accounting. This is principally true of those limited companies whose shares are traded on the London Stock Exchange. All of this regulation can be very tiresome for the companies and, significantly extremely expensive.
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The standard requires that a distinction is normally made on the statement of financial position between current assets and non-current assets and between current liabilities and non-current liabilities.
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