Main elements of published accounts Flashcards
Who are the rules regarding what should be in published accounts provided by?
International accounting standards
The companies act 2006
What can the Income Statement provide? 2
Profits and the calculation of profitability ratios
Figures for efficiency ratios
What can the sofp provide? 3
Calculation of solvency and capital gearing ratios.
Provides capital employed for ROCE
Provides some of the figures for efficiency ratios
What can the statement of changes in equity provide? 2
Movements in each element of equity section
Dividends paid in comparison to profit for the year
What can the Notes to the accounts provide? 2
Explanations and break-down of main items in income statement and sofp
Includes the schedule of non-current assets
What can the statement of accounting policies provide? 2
Especially depreciation of non-current assets
Helps ensure consistency and transparency
What can the directors report provide? 2
Provides shareholders with a summary of recent trading activities and outlines future prospects.
Also states the value of dividends that will be paid in respect of the current year
What can the auditor’s report provide? 1
Informs shareholders whether the financial statements give a true and fair view of the performance and financial position of the company
What can the comparative figures from previous years provide? 1
Provide some indication of what may happen in the future, by indicating trends rather than just the current year’s figures
