Chapter 8 - Single entity accounts

Question 1

What is the objective of financial statements according to IAS 1?

Answer 1

Provide info about the financial position, performance and cash flow of an enterprise

Question 2

What does IAS 1 define a complete set of financial statements as?

Answer 2

• SOFP
• P/L
• Changes in equity
• Cash flow
• Notes

Question 3

Who is responsible for the prep and presentation of statements?

Answer 3

Board of directors

Question 4

What does a fair representation require entities to do?

Answer 4

• Fair representation of transactions
• Select definitions and recognition criteria in accordance with conceptual framework
• Present info well
• Provide additional disclosure if required

Question 5

What concepts should be applied when preparing IAS 1?

Answer 5

Going concern

Accrual basis (except cash flow)

Consistency

Off-setting

Question 6

What info should be disclosed regarding share capital?

Answer 6

• Number of authorised shares
• Number of shares issued and fully paid/not
• Per value per share

Question 7

What is total comprehensive income?

Answer 7

P/L for the period plus other comprehensive income (OCI)

Question 8

What is OCI?

Answer 8

Includes income and expenses not recognised in P/L

Question 9

What needs to be shown on the face of SOFP?

Answer 9

• Revenue
• Finance costs
• IT expense

Question 10

What items are shown in the statement of changes in equity?

Answer 10

• Profit for the period
• Dividends paid
• Issues of shares
• Revaluation surplus

Question 11

What appears separately in the statement of changes in equity?

Answer 11

Dividends paid and proceeds from share issue