Summary how to prepare financial statement for a limited company as per international accounting standard 1l

Financial statements of Limited companies
Unit 02 - Accounting
Preparation of Financial statements

1. What are the publish accounts by limited companies

I. Statement of comprehensive income
II. Statement of changes in equity
III. Statement of financial position.
IV. Cash flow statement

2. What are the limited company final accounts
I. statement of comprehensive income
II. statement of financial position.
III. statement of changes in equity


statement of comprehensive income accordance with IAS 1

statement of comprehensive income
for …………………………………………PLC
for the year ended……………………… £
Revenue xxx
Cost of sales (W1) (xxx)
Gross profit xxx
Other income (w2) (xx)
Distribution costs(W3) (xx)
Administrative costs (W4) (xx)
Financial costs (w5) (xx)
Profit on ordinary activities before tax xxx
Corporation tax (xx)
Profit on ordinary activities after tax xxx




Accounting by F.Jiyana Page 1

, Cost of sales (W1) Administrative costs (W4)
 Direct materials  Bad debts written off
 Inventory adjustment WIP  Office staff wages
 inventory adjustment  Finance directors’ salaries
finished goods  Office stationery
 Finished goods  Accountancy staff wages
 Direct labour  Cash discounts allowed
 Factory staff  Professional fee
wages  Computer depreciation
 Fees to debt collection agency
 Production staff
 Administration staff
wages
wage
 Stock Adjustment
 Accountancy staff
 Production Director salaries
wages
 Research and Development
 Hire of photocopiers
 Discounts received on purchases
 Insurance
(trade discounts)
 Discounts received on raw
materials Financial costs (w5)
 Factory rent and power  Interest bank loan
 Factory power  Debenture interest
 Factory depreciation  Interest bank overdraft
 Machinery maintenance  Legal fees
 Machinery depreciation
 Hire of plant and machinery



Other income (w2)
 Dividend received
 Rent received
 Discounts received (cash)
 Interest received/ interest on
bank balance
 Canteen sales


Distribution costs(W3)
 Motor lorries
expenses
 Transport staff wages
 Fuel for lorries
 Advertising and
promotions
 Discount sales
 Lorry drivers wages
 Shop staff wages
Accounting by F.Jiyana Page 2