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3.4
Final
Accounts (some HL)

All organizations, profit and non-profit, have stakeholders who want to be informed of the organization's financial position and performance. The Income Statement is a financial statement that shows the profit made by a business over a period of time. This is calculated by deducting the expenses of the business from the revenues. The Balance Sheet is a financial statement that shows the current value of a business at a specific date. This is calculated by deducting the liabilities of the business from the assets. The balance is the capital / equity payable to the owners. What these statements are for, why they are important to different stakeholders and how they can be interpreted will be learned in this unit.

Additionally, students will investigate the intangible assets of businesses such as goodwill, patents, trademarks and copyrights. These are commonly known as intellectual property rights and are vital to a businesses balance sheet, especially in this period of globalization.

Finally, Higher Level students will learn how to calculate fixed asset depreciation using two different calculation methods. The choice depends on the business type and each has a different impact on the net profit figure of a business.
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