Presentation
In this lesson, you'll learn how to present allowances for receivables in both the statement of financial position and statement of profit and loss.
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
In this lesson
- 0:00 Receivables presentation on statements
- 0:26 Trade receivables net figure explained
- 0:44 Statement of profit and loss impact
- 1:01 Netting off expenses and gains
About this lesson
You'll discover why allowances are kept separate in the ledger but netted off on the financial statements—similar to how accumulated depreciation is shown against PPE—and how movements in allowances and irrecoverable debts flow through to profit and loss, typically within admin expenses. Understanding this presentation is essential for Financial Reporting and Strategic Business Reporting papers, where accurate treatment of receivables directly affects both balance sheet and income statement figures.
Duration: 2m
Transcript
Every lesson comes with a full searchable transcript - included with the course.
Get the Financial Accounting course
All 105 video lessons, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in