Regulatory Framework Flashcards
What is the Statement of Financial Position?
Advises positions of companies Assets and Liabilities at a point in time.
What is the Statement of Profit and Loss and other Comprehensive Income?
Advises performance of a business includes gains / losses not classed as profit or loss.
What is the Statement of Changes in Equity?
How the equity of a company has changed over a period.
What is the statement of Cash Flow?
The movement of cash in and out of a business over a period of time.
What is Stewardship?
The accountability of management for the resources entrusted to it.
Who may need to see a companies Financial Statements?
Investors, Management, Employees, Government, Customers, Suppliers, Lenders and the Public.
What are the Investors needs?
Ability to pay dividends and manage resources
What are Managements needs?
Assess performance and take decisions, plan.
What are Lenders needs?
Ability of a company to repay it’s loans.
