The topic of final accounts in the IB Business Management syllabus examines financial accounting (the published accounts of businesses available to and used by different stakeholders), rather than management accounting (which is created by and used for internal and confidential purposes). This topic looks at the two main final accounts of businesses: the balance sheet and the profit and loss account (or income statement). Both sets of final accounts are required to be published for legal reasons, but are also essential for the organization’s own strategic planning.

The learning outcomes (or assessment objectives) for this section of the IB Business Management syllabus are:

• The purpose of accounts to different stakeholders (AO3)
• The principles and ethics of accounting practice (AO3)
• Final accounts (AO2, AO4):
  • profit and loss account
  • balance sheet
• Different types of intangible assets (AO1)
• Depreciation using the following methods (HL only) (AO2, AO4):
  • straight line method
  • reducing / declining balance method
• The strengths and weaknesses of each method of depreciation (AO2)