← Company financial statement preparation
How this connects to the other Level 3 Accounting standards
The three externals share a way of thinking, even though the outputs look different: 91406 prepares the statements, 91408 uses figures like them to plan and decide.Shared habits across the three externals
- The accrual basis (recognise when earned/incurred, not when cash moves) is what makes an accrued expense a liability here, and what makes a budgeted figure in 91408 different from a cash figure.
- An "explain in detail" answer always follows the same shape everywhere on this site's accounting content: name the relevant account(s), state the figure, then state the effect — on profit, on a balance, or on a decision.
- Distinguishing operating/investing/financing (91406's cash flow statement) is the same classification instinct as separating fixed from variable costs (91408's CVP analysis) — both are "which category does this actually belong to", not just "what is the number".