The nature of equity

A pictorial presentation of a balance sheet showing assets of £50,000, liabilities of £30,000 and equity of £20,000.

Of the five financial statement elements, equity is the most mercurial. In part, because it's a function of recognised assets less recognised liabilities, simply expressed in this form of the accounting equation. Assets – Liabilities = Equity (net assets) It’s this residual aspect of equity that makes balance sheets balance. They balance because equity is… Continue reading The nature of equity

Top 5 most confusing things about accounting

At Accounting Cafe we’re discussing how we help our students ❤️ accounting. Accounting terms that we take for granted are confusing for students. Thinking about this in your teaching can make their learning journey that much faster and easier.Here are my top 5 most confusing things about accounting:⁉️ An entity's most valuable assets are rarely… Continue reading Top 5 most confusing things about accounting

Teaching liabilities

Paul Jennings gives some useful tips and sequences for teaching liabilities. Image by cocoparisienne from Pixabay The elements of financial statements are the building blocks of financial statements.  If your students understand what the elements are then they will understand the basis for reporting events in financial statements. Those elements - assets, liabilities, equity, income… Continue reading Teaching liabilities

The nature of assets

Photo by Krisztina Papp on UnsplashA retailer has recognisable rights to its retail units even though it does not own the shopping centre. The elements of financial statements are the building blocks of financial statements. If your students understand what the elements are then they have a good basis for understanding how events are reported… Continue reading The nature of assets

Concept maps in Accounting Education

Presentation by Toby York TACTYC Virtual Annual Conference on 15 May 2021 1. Background paper My presentation is based on a draft paper The benefits of concept mapping in accounting education [PDF] which is in three parts. Part one: identifies some common problems with current accounting education practices, drawn mostly from personal and anecdotal experiences.… Continue reading Concept maps in Accounting Education

Seminar: Deriving profit using a concept map

Toby York and Paul Jennings hosted a Zoom seminar on 20 May 2021 This was the third seminar in a series about using concept maps in accounting education. Session 1: Concept mapping in accounting education Session 2: The funding butterfly This approach emphasises the organisational structure of accounting knowledge, which makes it easier to teach… Continue reading Seminar: Deriving profit using a concept map

Concept mapping and playful learning through ‘Colour Accounting’

Presentation by Toby York at the Games and Simulations in Accounting and Finance Education ('GSAFE') conference hosted by Aston University on 20 April 2021 The benefits of concept mapping in accounting education My presentation is based on a draft paper The benefits of concept mapping in accounting education, which is in three parts. Part one:… Continue reading Concept mapping and playful learning through ‘Colour Accounting’