1 Introduction to published accounts Flashcards
1
Q
What does IAS 1 state that a complete set of financial statements should comprise off?
A
- statement of financial position
- P&L
- statement of changes in equity
- statement of cash flow
- accounting policies and explanatory notes
2
Q
When does IAS 1 require an asset or liability to be classified as current?
A
- will be settled within 12 months of the reporting date
- part of the entity’s normal operating cycle
3
Q
What are the other components of equity?
A
- revaluation surplus
- share premium
- investment reserve
4
Q
What is the total comprehensive income?
A
The realised profit or loss for the period plus other comprehensive income
5
Q
What is the aim of a profit orientated sector business?
A
- financial aims to make profit and increase shareholder wealth
- directors are accountable to shareholders
- external finance freely available in forms of loans and share capital
6
Q
What is the aim of not for profit or public sector businesses?
A
- financial aim to achieve value for money/provide service
- managers are accountable to trustees/government/public
- finance limited to donations/government subsidies
