C3 - Published FS Of LTD Companies Flashcards
What are statutory accounts?
These accounts are required to be produced under the company law. A copy is then files with the Registrar of companies where it is available to the public domain
What are the accounts filing deadlines after the end of the accounting period for..
- Private limited company
- Public limited company
- Nine months
2. Six months
What is the punishment for late filing of accounts?
Penalties and fines or a company can be struck off the companies register
IAS 1 - presentation of financial statements
Meaning
The objective is to provide information about the financial statements of an entity that is useful to a wide range of users in making economic decisions.
What are dividends?
Distributions to the shareholders who own the company as a return on their investment.
What are interim dividends?
Usually paid just over halfway through the financial year.
These can only be recorded in the financial statements as this is done in the accounting period.
What are final dividends?
Paid yearly in the next financial year.
These can not be recorded in the current FS as they are paid in the following accounting period and would therefore breach the accruals standard.
IAS 7 - Cash flows
Meaning
An overall view of money flowing in and out of the company during its accounting period.
It links profit with changes in assets and liabilities and the effect on the cash of the company.
What size companies are exempt from audit requirements?
Small and medium companies only
What does it mean if an auditors opinion is ‘unqualified’
- FS have been prepared properly
- they give a true and fair view of the companies affairs
- directors reports are consistent
What does it mean if an auditors opinion is ‘qualified’?
- certain parts of the FS have not been dealt with correctly
What is a bonus share?
When a company issued free shares to existing shareholders. It does this by using a build up of reserves.
What are rights issues?
Used by a company seeking to raise further finance through the issue of shares.
(Offering additional shares at a cheaper price to existing shareholders instead of the public)
