Chapter 3

Question 1

What is filed with the registrar of companies?

Answer 1

• statutory accounts

Question 2

Another name for annual report and accounts

Answer 2

The Corporate Report

Question 3

What does the corporate report contain

Answer 3

• SoPoL
• SoFP
• SoCF
• SoCiE
• Notes to the financial statements
• directors’ report
• auditors’ report

Question 4

Main provisions of the companies acts for financial statements

two requiremements

Answer 4

Must:
- show and explain business transactions
- disclose with reasonable accuracy the financial position of the company

Question 5

A company’s financial statements must comply with which two bodies?

Answer 5

• either UK accounting reporting standards or IFRS
• Companies Act

Question 6

when must statutory accounts be filed for plc’s?

Answer 6

6 months after year end

Question 7

when must statutory accounts be filed for private limited company?

Answer 7

9 months after year end

Question 8

IAS 1 on the statements’ users

Answer 8

financial statements must provide information about financial position, performance and cash flows that is useful to wide range of users for decision making

Question 9

IAS 1: what makes a set of financial statements complete?

Answer 9

• SoFP
• SoPL
• SoCE
• SoCF
• accounting policies and explanatory notes
• comparative info for preceding period

Question 10

what would dividends issued be comprised of in the year end accounts?

Answer 10

• previous financial year’s final dividend
• current financial year’s interim dividend

Question 11

what is a current asset

Answer 11

An asset that is going to be realised or sold within the usual operating cycle or within 12 months

Question 12

What are the two things the director’s report contains?

Answer 12

• review of activities over last year
• likely developments in the future

Question 13

Three main sections of auditors’ report

Answer 13

• respective responsibilities of directors and auditors (directors prepare financial statements, auditors form an opinion on them)
• basis of opinion - details of how the audit was performed and assessments made
• opinion

Question 14

what does it mean for an auditor to say their opinion is ‘unqualified’

Answer 14

• financial statements are prepared properly and to good accuracy
• statements give a fair and true representation in line with IFRS
• directors’ statement is coherent with figures

Question 15

example of accounting policy

Answer 15

method of depreciation