FRK 122
CHAPTER 5: PRESENTATION OF
FINANCIAL STATEMENTS
INTRODUCTION:
Objective of financial statements (FS) is to provide information about the:
- Financial position (SFP)
- Financial performance (SPLOCI), and
- Cash flows (SCF)
that is useful for economic decision-making to various users (e.g. Investors,
Lenders, Owners, Managers, Employees)
A complete set of financial statements must include:
1. Statement of profit or loss and other comprehensive income (SPLOCI)
2. Statement of changes in equity (SOCIE)
3. Statement of financial position (SFP)
4. Statement of cash flows (SCF)
5. Notes to the financial statements
, SPOCLI:
SOCIE:
SFP:
NOTES:
Accounting policies are principles applied by an entity in preparing FS and serve
to inform users on what basis the FS were prepared
Examples of accounting policies:
- Measurement basis, e.g. historic cost
- Depreciation policy for tangible non-current assets
- Measurement of inventories, e.g. FIFO
CHAPTER 5: PRESENTATION OF
FINANCIAL STATEMENTS
INTRODUCTION:
Objective of financial statements (FS) is to provide information about the:
- Financial position (SFP)
- Financial performance (SPLOCI), and
- Cash flows (SCF)
that is useful for economic decision-making to various users (e.g. Investors,
Lenders, Owners, Managers, Employees)
A complete set of financial statements must include:
1. Statement of profit or loss and other comprehensive income (SPLOCI)
2. Statement of changes in equity (SOCIE)
3. Statement of financial position (SFP)
4. Statement of cash flows (SCF)
5. Notes to the financial statements
, SPOCLI:
SOCIE:
SFP:
NOTES:
Accounting policies are principles applied by an entity in preparing FS and serve
to inform users on what basis the FS were prepared
Examples of accounting policies:
- Measurement basis, e.g. historic cost
- Depreciation policy for tangible non-current assets
- Measurement of inventories, e.g. FIFO
