Nội dung

Revise lecture 3 1 Revise lecture 3 • Development of IFRS 2 Revise lecture 3 • GAAP • A conceptual framework • Qualitative characteristics of FS 3 • Introduction to Published accounts 4 Introduction to Publishes accounts Preparation of FS for companies In most jurisdictions the structure and content of FS are defined by local law. IASs, however, designed to work in any jurisdiction and therefore require their own set of requirements for presentation of FS. This is provided in IAS1, revised June 2011 5 Introduction to Publishes accounts A complete set of financial statements comprises: 1. A statement of financial position (SFP) 2. A statement of comprehensive income 3. A statement of changes in equity 4. A statement of cash flows 5. Accounting policies and explanatory notes 6 Introduction to Publishes accounts • IAS 1 (revised) does not require the above titles to be used by companies. It is likely in practice that many companies will continue to use the previous terms of balance sheet rather than statement of financial position and cash flow statement rather than statement of cash flows 7 Draw - SFP 8 Draw – Statement of changes in equity 9 Introduction to Publishes accounts IAS 1 Presentation of financial statements requires that you prepare either; 1. A statement of comprehensive income showing total comprehensive income or 2. An income statement showing the realised profit or loss for the period PLUS a statement showing other comprehensive income 10 Draw – Statement of comprehensive income 11 Draw – Income statement plus 12 Draw – Statement of comprehensive income 13 Introduction to Publishes accounts Not-for-profit and public sector entities The main aim of not-for-profit and public sector entities are very different to those of profit-orientated entities 14 Introduction to Publishes accounts Profit-orientated sector Financial aim is to make profit and increase shareholder wealth Not-for-profit / Public sector Financial aim is to achieve value for money / provide service 15 Introduction to Publishes accounts Profit-orientated sector • Directors are accountable to shareholders Not-for-profit / Public sector • Manager are accountable to trustees / government / public 16 Introduction to Publishes accounts Profit-orientated sector • External finance freely available in the form of loans and share capital Not-for-profit / Public sector • Finance limited to donations / government subsidies 17