spb/ultra-sharp-agent-skills Public

1<!--2Author: Simon-Pierre Boucher3Contact: contact@spboucher.ai4-->56# Reference — Preparing Financial Statements78## Contents9- Account classification table10- Worked example: trial balance → three tied statements11- Framework comparison (US GAAP / IFRS / ASPE)12- Gotchas1314## Account classification table1516| Account | Statement | Line |17|---|---|---|18| Cash, AR, inventory, prepaid | Balance sheet | Current assets |19| Equipment, vehicles, leaseholds | Balance sheet | Non-current assets |20| Accumulated depreciation | Balance sheet | Contra to non-current assets |21| AP, credit cards, sales tax payable, payroll liabilities | Balance sheet | Current liabilities |22| Loan principal due ≤12 months | Balance sheet | Current portion of long-term debt |23| Loan principal due >12 months | Balance sheet | Non-current liabilities |24| Capital, draws, retained earnings | Balance sheet | Equity |25| Sales, refunds/discounts | Income statement | Revenue (net) |26| COGS | Income statement | Cost of goods sold |27| Rent, wages, software, insurance, depreciation | Income statement | Operating expenses |28| Interest expense | Income statement | Below operating income |2930## Worked example (year 1, small consultancy)3132**Trial balance (Dec 31, 2026):**3334| Account | Dr | Cr |35|---|---|---|36| Cash | 34,000 | |37| Accounts receivable | 6,000 | |38| Equipment | 10,000 | |39| Accumulated depreciation | | 2,000 |40| Accounts payable | | 3,000 |41| Loan payable | | 8,000 |42| Owner's capital | | 5,000 |43| Owner's draws | 20,000 | |44| Revenue | | 90,000 |45| Operating expenses | 36,000 | |46| Depreciation expense | 2,000 | |47| **Totals** | **108,000** | **108,000** |4849**Income statement:** Revenue 90,000 − Operating expenses 36,000 − Depreciation 2,000 = **Net income 52,000**5051**Balance sheet:**52- Assets: Cash 34,000 + AR 6,000 + Equipment 10,000 − Accum. dep. 2,000 = **48,000**53- Liabilities: AP 3,000 + Loan 8,000 = 11,00054- Equity: Capital 5,000 + Net income 52,000 − Draws 20,000 = 37,00055- Liabilities + Equity = **48,000** ✔ balances5657**Cash flow (indirect):**58- Operating: 52,000 + 2,000 depreciation − 6,000 AR increase + 3,000 AP increase = 51,00059- Investing: −10,000 equipment60- Financing: +5,000 capital +8,000 loan −20,000 draws = −7,00061- Net change: 34,000; beginning cash 0 → **ending cash 34,000** ✔ ties to balance sheet6263All three ties hold: balance sheet balances; RE roll-forward uses 52,000; ending cash matches.6465## Framework comparison6667| Aspect | US GAAP | IFRS | ASPE (Canada, private) |68|---|---|---|---|69| Who must use | US companies (public: SEC GAAP) | Canadian public companies; optional elsewhere | Default for Canadian private enterprises |70| Complexity | High | High | Simplified, made-in-Canada |71| Revaluation of fixed assets | No | Allowed | No |72| Development costs | Expensed (mostly) | Capitalize if criteria met | Policy choice |73| Statement titles | Flexible | "Statement of financial position" etc. | Traditional titles common |7475Disclose the basis on the statements (e.g., "Prepared in accordance with ASPE, unaudited").7677## Gotchas78- **Draws/dividends never touch the income statement** — equity only. A P&L with "owner draw expense" overstates costs.79- **Working-capital signs** in the cash flow trip everyone: asset increases consume cash (subtract); liability increases provide cash (add).80- **Current portion of long-term debt** must be split out yearly or current liabilities are understated.81- **Refunds** net against revenue, not expenses.82- **Comparative columns must use the same account mapping** — a reclassified account needs the prior year restated or a note.83