Format of financial statements

Question 1

What are the IAS1 principles of financial statements?

Answer 1

Fair presentation
Going concern
Accruals basis - recorded when transactions occur
Consistency of preparation
Materiality or aggregation
Offsetting - not allowed
Comparitive info
Disclosure of accounting policies

Question 2

What is the order for sections in the Statement of Financial Position?

Answer 2

Non-current assets (right)
Current Assets (left)
Total (right)
Equity (right)
Non-current liabilities (left)
Total (right)
Current liabilities (left)
Total (right)

Question 3

What are the double entries for payment of ordinary dividends, irredeemable, and redeemable preference shares

Answer 3

Dr Retained earnings Cr Cash
Dr Retained earnings Cr Cash/dividends payable
Dr Finance costs Cr Cash/other payables

Question 4

What is the format for the Statement of Profit or Loss?

Answer 4

Revenue
(COS)
GP
(Expenses)
Operating profit
(Finance costs)
P/L before tax
(Tax)
P/L for yr

Question 5

What are exceptional items?

Answer 5

Material items of income and expense which should be disclosed separately
Write downs of inventory or PPE
Disposal of PPE or investments
Restructuring/discontinued operations
Litigation settlements

Question 6

What is the format for a Statement of changes in equity?

Answer 6

Along top: Ordinary share capital, preference sc irredeemable, share premium, retained earnings, revaluation surplus, total
Down side: @20XY, changes in policy, restated balance, issue of sc, final div on ordinary shares, final div on irredeemable shares, total, comp income for yr, transfer to retained earnings, @ end 20XY

Question 7

What are the classifications of cash flow?

Answer 7

Operating activities - revenue producing
Investing activities - acquisition/disposal on nca
Financing activities - changes in equity

Question 8

What should the notes to the financial statements contain?

Answer 8

Amplify info
Basis FS prepared on
Specific accounting policies
Disclose info required by IFRS

Question 9

What should the accounting policies section include?

Answer 9

Measurement basis
Other policies used
Judgements
Key assumptions made about future and uncertainties

Question 10

What other disclosures can be made?

Answer 10

Amount of dividends proposed before FS authorised for issue
Amount of cumulative preference dividends not recognised
Domicile/legal form, country of inc, address of office
Description of nature
Name of parent entity