Financial Statements Sample

Excel
Excel Skills
Skills || Financial
Financial Statements
Statements Template
Template
About
About this
this template
template
This
This template
template enables
enables users
users to to compile
compile comprehensive
comprehensive financial financial statements
statements based
based on on International
International Financial
Financial Reporting
Reporting Stan Stan
enterprises
enterprises (IFRS(IFRS forfor SME's)
SME's) from from any
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About
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the financial
statements template.
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on International
International Financial
Financial Reporting
Reporting Standards
Standards forfor small
small && medium
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Excel Skills | Financial Statements Template
Instructions
www.excel-skills.com
This template enables users to compile comprehensive financial statements based on International Financial Reporting
Standards for small & medium enterprises (IFRS for SME's) from any trial balance regardless of the structure of the On
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sheet:
accounts that are included in the trial balance. The financial statements are compiled by linking each account in the trial This
This sheet
sheet includes
includes detailed
detailed instructions
instructions
balance to a pre-defined financial statement reporting class code and all the amounts that are included on the financial on
on setting
setting up
up and
and using
using this
this template.
template.
statements are automatically calculated based on the linked class codes. The template can also easily be rolled forward or
back by simply changing the year value in a single input cell.
Disclaimer: The aim of this template is to assist users in compiling a standard set of financial statements and we can
therefore not guarantee that all the financial statement disclosures that are required for the particular business will be
accommodated in the template. The user therefore remains solely responsible for ensuring the accuracy and
completeness of financial statement disclosure.
The following sheets are included in the template:

Set-up - enter all the relevant business details on this sheet and specify the financial year end month and the current
financial reporting period. The reporting period that is specified determines which annual periods will be included in the
current and comparative periods on the financial statements.
BUY
BUY FULL
FULL VERSION
VERSION TO
TO
Classes - this sheet contains all the pre-defined financial statement reporting classes that should be used to link the UNLOCK!
UNLOCK!
accounts on the trial balance to the calculations on the financial statements. The classes are provided in order to simplify
the linking of accounts and are not linked to the financial statements. Changes that are made to the pre-defined classes
on this sheet will therefore have no effect on the financial statement calculations.
TB - a complete trial balance for each annual period should be included on this sheet and each account in the trial
balance should be linked to the appropriate financial statement reporting class by entering or copying the appropriate
class code into column A. The amounts that are included on the financial statements are automatically updated based on
the classes that are specified on this sheet.
FinInfo - this sheet contains financial statement information that is incorporated in the financial statements but not derived
from the trial balance. Users are therefore required to enter the appropriate values for each annual period that is included
in the template. The values that are specified on this sheet are automatically included on the financial statements based
on the pre-defined code that is included in column A.
AFS - this sheet includes a complete set of financial statements which is automatically compiled based on the current
reporting period that is selected on the Set-up sheet, the account balances that are included on the TB sheet and the
financial information that is included on the FinInfo sheet. No user input is required on this sheet but users can customize
the standard financial statements based on their own requirements if necessary.
TBImport - the calculations on this sheet enables users to review the sequence of trial balance accounts before copying
the account balances to the TB sheet. The sequence of accounts can be amended until no errors are reflected and the
calculations in column E round all trial balance amounts to the nearest integer value thereby ensuring that all the totals on
the financial statements are accurate.
Set-up
The input cells that contain a yellow cell background on the Set-up sheet need to be completed in order to include your
business details on the financial statements. The business name is included on all the financial statement page headings
and the business registration number is included on the index page (the first page of the financial statements).
The business address and country are included in the first note to the financial statements and the currency symbol that is
specified in cell B12 is included below the year on a number of pages of the financial statements. The year end month in
cell B14 is used to determine the appropriate year end date and previous year end date which are included in a number of
notes to the financial statements.
The current reporting year needs to be entered in cell B16 and determines which annual period is used as the current
reporting period in the financial statements. The comparative year is also determined based on the input in this cell and all
the values that are included on the TB sheet and the FinInfo sheet are included in the automated financial statement
calculations based on the year that is entered in this cell.
Note: You can therefore automatically roll the financial statements forward or back by simply changing the year that has
been entered in cell B16 on the Set-up sheet. All the calculations on the financial statements will be updated automatically
after editing the value in this cell.
Page 3 of 35
Instructions
The reporting date in cell B18 is determined based on the year end period that is specified in cell B12 and the current
financial reporting year that is specified in cell B14. This date is used in the headings of the financial statements and in On
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multiple notes. This
This sheet
sheet includes
includes detailed
instructions
on
on setting
setting up
up and
and using
using this
this template.
template.
The total number of pages that is entered in cell B20 is only used to determine the total number of pages that needs to be
included in the table of contents on the financial statements (on the first page in cell I17). The default value is 12 but may
need to be changed after customizing the financial statements and determining the total number of pages that will be
printed.
Trial Balance
A complete trial balance should be copied or entered on the TB sheet for each annual reporting period that needs to be
included in the financial statements. All the account numbers and account descriptions that form part of the trial balance
need to be copied or entered into column B and C on the TB sheet and the appropriate account balances need to be
entered into the columns from column D onwards.
Each account then needs to be linked to one of the pre-defined financial statement reporting classes that are listed on the
Classes sheet. The template will contain default data on the TB sheet when you use it for the first time but you can replace
all the account numbers and descriptions with your own and clear all the class codes in column A before you commence
with the exercise of linking your accounts to the appropriate pre-defined financial statement reporting classes.
After clearing all the class codes from column A, you need to refer to the Classes sheet in order to determine which
accounts need to be linked to which financial statement reporting classes. Note that you do not need to use all the default
classes if they are not required but it is imperative that each account is linked to a class. After completing the linking
exercise, there should therefore be no blank values in column A.
Note: We have included conditional formatting in column A in order to highlight all the cells that have not been linked to
one of the pre-defined reporting classes in red. If you therefore notice that a cell has been highlighted in red, it either
means that the account is not linked to a class at all or that the account is not linked to a valid class. After correcting the
input in column A, the red highlighting will be removed automatically.
Note: All the accounts that are included in your trial balance should be entered in a continuous cell range on the TB sheet
- there should not be any blank rows or columns in between account numbers or financial periods otherwise all the
accounts or periods may not be included in the financial statement calculations and your balance sheet may therefore not
balance!
We have also included totals above the column headings which will indicate if the sum of the account balances for any
annual period does not equal nil. If the total of all the account balances in a trial balance does not equal nil, it means that
the financial statements will not be accurate and that the balance sheet will probably not balance. You should therefore
always ensure that the trial balance for each annual period adds up to a nil value.
New businesses
When compiling financial statements for a new business, you only need to include the account balances of the current
financial reporting period on the TB sheet. All the amounts for the comparative financial year on the financial statements
will be nil.
The TB sheet contains a number of default years - you can therefore change the column heading in column D to the
appropriate current financial year and change all the subsequent columns to the appropriate subsequent years. Also
remember to enter the correct current financial reporting period in cell B16 on the Set-up sheet.
Existing businesses
When compiling financial statements for an existing business, you need to include the trial balances of at least the last two
financial years on the TB sheet but you will also need to include the balance sheet balances of a third year so that the
cash flow calculations in the financial statements are accurate.
Page 4 of 35
Instructions
We therefore recommend that users include the complete trial balances of at least three financial years on the TB sheet
when using the template to compile financial statements for existing businesses. If you only include the balance sheet of On
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the third financial year (the year prior to the comparative financial period), it is absolutely essential that the trial balance This
This sheet
sheet includes
includes detailed
instructions
still balances and that the retained earnings balance is calculated accurately, otherwise your financial statements for the on
on setting
setting up
up and
and using
using this
this template.
template.
comparative year may not be accurate.
The TB sheet contains four financial periods by default and in most instances, these financial periods will represent the
financial periods that are required for existing businesses. If you are compiling financial statements for previous periods,
you may however need to change the column headings accordingly (start with the year before the comparative period in
column D). Also remember to enter the correct current financial reporting period in cell B16 on the Set-up sheet so that the
financial statements are compiled for the correct period!
Adding new financial periods
After using the template to compile your first set of financial statements, you can add subsequent financial periods by
simply copying the last column on the TB sheet to the next available column, changing the column heading to the next
financial period and clearing all the account balances in the new column (we recommend replacing the existing values with
nil values before entering or copying the appropriate account balances into the new column).
Note: The same procedure can be followed to also add the new financial period to the FinInfo sheet but before you
replace all the values in the new column with nil values, note that some of these values will need to remain unchanged for
the next financial period.
Note: All the trial balance data on the TB sheet should form part of a continuous cell range and you should therefore not
include any blank rows or columns between rows or columns that contain data otherwise the financial statement
calculations will not be accurate.
Trial balance check & import
If you use a trail balance export file in order to compile financial statements, the trial balance export will have to be
converted so that the account numbers are in the exact same sequence as the accounts on the TB sheet before you will
be able to copy the balances onto the TB sheet. This is an absolute necessity in order to ensure that the correct account
balances are included next to the correct account number.
New accounts may also have been added during the current financial period which may not be included in the previous
trial balance on the TB sheet. These accounts therefore need to be identified and inserted in the correct row position
before the account balances can be copied. This could be quite a time consuming exercise and we have therefore created
the TBImport sheet to assist users in simplifying this exercise.
The following steps need to be completed in order to ensure that the trial balance for the new financial period is correctly
included on the TB sheet:
■ Sort the data on the TB sheet in an ascending order based on the account number in column B.
■ Sort the data on the trial balance export file in an ascending order based on the account number column.
■ Copy the account number, account description and account balance from the export file and paste the data into column
A to C on the TBImport sheet (replace the existing data on this sheet).
■ Copy cells D5 and E5 and paste these cells into all the rows in column D and E that contain account numbers. Note that
these two cells contain formulas and formatting that will assist you in identifying new accounts or changes that need to be
made to the sequence of the accounts in the export file.
■ Review the contents in column D - a row that contains a green "ok" cell is in the correct sequence but if an "error" is
displayed in orange, it means that the sequence of accounts on the TBImport sheet is not the same as the accounts on
the TB sheet.
■ Compare the contents of all the rows that contain errors by comparing the account sequence on the TBImport sheet with
the account sequence on the TB sheet.
■ Where an account is included on the TBImport sheet but not on the TB sheet, insert a new row on the TB sheet, copy
the account number and description into column B and C and enter a nil value into all the columns that relate to previous
financial periods. After completing these steps, the error in the particular row will automatically be removed from the
TBImport sheet.
■ Where an account is included on the TB sheet but not on the TBImport sheet, insert a new row on the TBImport sheet,
copy the account number & description from the TB sheet and copy the formulas in column D and E from one of the
existing rows. Column D should now contain a green "ok" message.
Page 5 of 35
Instructions
■ Repeat the previous two steps until the TBImport sheet contains no errors.
■ Ensure that the total of the amounts in column E on the TBImport sheet is nil - the total calculation is included in the row On
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above the column headings. If the total is not nil, the difference will be reflected in red in the cell above the column This
This sheet
sheet includes
includes detailed
instructions
headings with an "error" message next to it. Note that the difference may be attributable to rounding which is covered in on
on setting
setting up
up and
and using
using this
this template.
template.
the next section of these instructions.
■ If the column E total is not nil and the difference cannot be attributable to rounding, review your trial balance export and
make sure that the total of the export file is in fact nil. Also review the TBImport sheet and ensure that all the accounts on
the trial balance export have been added to this sheet.
■ Rounding errors can be corrected by amending the trial balance amounts of selected accounts in column C. When the
red cell background is removed from the total calculation and the "error" text is replaced by an "ok" message, it means that
the trial balance has been corrected.
■ The amounts in column E can now be copied and pasted as values in the appropriate column (for the new period) on the
TB sheet. After completing this step, the trial balance has successfully been imported into the template.
Rounding in financial statements
Rounding can have a significant impact on financial statements because the amounts that are displayed on the financial
statements may not always add up to the totals that are displayed. Even the most insignificant of errors could result in
financial statements appearing to be inaccurate and as a consequence also result in the value of the financial information
that is included in the financial statements being questioned.
Checking all the calculations in financial statements and making the appropriate adjustments could be quite a time
consuming and cumbersome approach and we therefore recommend making the required adjustments on a trial balance
level instead. This approach will ensure that the calculations that are included in the financial statements are always
accurate and negate the need to go through the entire cumbersome (manual) calculation exercise.
The problem with rounding in financial statement terms is that a trial balance typically includes two decimal values while
financial statements are typically compiled to the nearest integer value. When two amounts that contain decimal values
are rounded and added, the result is not necessarily the same as the rounded value of the total but if the decimal values
are rounded to the nearest integer value and then added, the total that is calculated is guaranteed to be accurate.
This approach is followed in the calculations in column E on the TBImport sheet in that the trial balance amounts in
column C are rounded to the nearest integer value in column E. If you therefore use the TBImport sheet to round all the
amounts on the trial balance to the nearest integer values before correcting any rounding differences that may exist and
copying & pasting the values onto the TB sheet, your financial statements are guaranteed to be accurate. We therefore
recommend always using the TBImport sheet before including the appropriate trial balance amounts for a new financial
period on the TB sheet.
Financial Information
The FinInfo sheet contains the financial information that needs to be included in our standard financial statements but can
typically not be derived from the amounts on a trail balance. These values therefore need to be entered for each financial
period that is included in the financial statements and for which a trial balance is therefore included on the TB sheet.
In terms of new and existing businesses and the addition of new columns, the same procedure that needs to be followed
in order to add new columns to the TB sheet needs to be completed for the FinInfo sheet. Refer to the Trial Balance
section of the instructions for guidance on how to amend the default columns and how to add new columns to this sheet.
Note: Some of the financial information that is listed on the FinInfo sheet may not be applicable to all businesses but we
recommend that you retain all the data on this sheet and that you simply enter nil values for the items that are not
applicable. Do not therefore delete any of these items as you may need some of them in future.
Page 6 of 35
Instructions
The values on the FinInfo sheet will have no bearing on whether the financial statements balance or not - this aspect of
the financial statements is entirely determined by the account balances that are included on the TB sheet. The values on On
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sheet:
the FinInfo sheet are mainly used to provide additional disclosures that may be required and in some instances to include This
This sheet
sheet includes
includes detailed
instructions
amounts that are required to be disclosed but typically do not get allocated to separate accounts in a general ledger (and on
on setting
setting up
up and
and using
using this
this template.
template.
therefore trial balance).
All the values on the FinInfo sheet are included on the financial statements based on the code that is included in column A
(note that all the codes start with an "F"). It is therefore imperative that you do not delete any of the pre-defined codes on
this sheet.
Note: We are not going to cover each individual item on the FinInfo sheet in these instructions but you can trace the codes
in column A to column A on the AFS sheet in order to see where the information is included in the financial statements.
Note that all the codes for the financial information that originates from the FinInfo sheet are displayed in orange on the
AFS sheet.
Annual Financial Statements
The annual financial statements are included on the AFS sheet. All the amounts that are included in the financial
statements are calculated from the trial balance that is included on the TB sheet and the additional financial information
that is included on the FinInfo sheet based on the reporting class codes that are included in column A on the AFS sheet. It
is therefore imperative that you do not delete these codes (this column does not form part of the printed pages).
The codes that are included in column A on the AFS sheet can be used to trace the appropriate amounts back to the
source sheet. Codes that are displayed in orange text can be found on the FinInfo sheet (all these codes begin with a "F")
and codes that are displayed in green text can be found on the TB sheet (all these codes begin with either an "I" for
income statement or a "B" for balance sheet).
Note: In some instances, multiple accounts on the Trial Balance may be linked to the same financial reporting class code.
We recommend that you filter the TB sheet based on the appropriate code by using the filter feature in the column heading
row in column A on the TB sheet. The totals that are displayed above the column headings are calculated by including
only filtered data and should therefore agree to the appropriate amount on the financial statements. Where a reporting
class consist of sub-codes, you will need to select all the codes that form part of the main code when filtering data.
Note: All the financial statement reporting class codes are pre-defined - you should therefore not amend any of these
codes because this will result in an amendment in the appropriate calculation which may lead to inaccuracies in the
financial statement calculations.
The standard financial statements on the AFS sheet do not require any user input but some amendments may be required
in order to customize the standard financial statements for your business. For example, some of the notes to the financial
statements may not be applicable to your business and the note numbers that are included in the yellow input cells next to
the heading of the retained notes therefore may need to be amended.
Note: We don't recommend deleting any of the contents on the AFS sheet because you will not be able to recover the data
and some of the data may also affect other calculations on this sheet. If you therefore don't want to include any of the
notes in your version of the financial statements, we recommend hiding the appropriate rows instead of deleting them.
This will ensure that none of the other calculations are affected.
Customizing the standard financial statements
After linking your trial balance to the reporting class codes on the TB sheet and entering all the required values on the
FinInfo sheet, we recommend that you review the standard financial statements on the AFS sheet. You can then hide all
the content that is not applicable to your business and change the note numbers next to the note headings accordingly. As
we mentioned before, you should not delete any of the data on the AFS sheet.
Page 7 of 35
Instructions
It is imperative that you read through all the contents that are included on the AFS sheet in order to determine whether all
the standard information is applicable to your business. This is especially necessary for the notes on the accounting On
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policies that have been applied in compiling the financial statements because these policies may very well differ between This
This sheet
sheet includes
includes detailed
instructions
different types of businesses. on
on setting
setting up
up and
and using
using this
this template.
template.
It is practically impossible to include financial statement information that will be suitable to all types of businesses in a
financial statement template and the responsibility for ensuring that all the required disclosures are included in the
financial statements remains that of the user. We will also not be able to assist you in adding additional notes to the
standard financial statements; instead we recommend that you contact your accountant in order to assist you in ensuring
that all the required disclosures are added to the template.
If you need to add a new reporting class to the template that is based on information that is included in the trial balance,
you can add the appropriate row(s) to the AFS sheet by inserting the required number of new rows, entering a new class
code in column A and copying the TB formulas which are included at the bottom of the AFS sheet into the current and
comparative financial period columns. The new class code then also needs to be linked to the appropriate accounts on the
TB sheet in order to update the relevant calculation.
You can also include new financial information items on the AFS sheet by following the same approach and simply copying
the FININFO formulas which are included at the bottom of the AFS sheet. The new codes also then need to be linked to
the appropriate new items on the FinInfo sheet in order to update the relevant calculations.
Note: When adding new codes to the TB or FinInfo sheets, it is imperative that the calculations be integrated into the
existing income statement or balance sheet and cash flow calculations in order to ensure that all the financial statement
calculations remain accurate. Due care should therefore be taken when customizing the standard financial statements
because errors may result in inaccurate financial statement info.
AFS Components
In this section of the instructions, we provide guidance on the information that is included in each section of the financial
statements on the AFS sheet. One of the most important points to note is that the current and comparative periods are
determined by the year that is specified in cell B16 on the Set-up sheet. Users therefore don't need to change the
individual dates on the AFS sheet when compiling financial statements for a new period.
Table of contents
The business registration number and the total number of pages that is included in the notes to the financial statements
row need to be specified on the Set-up sheet. The date of approval of the financial statements needs to be specified as
part of the financial statement info on the FinInfo sheet.
Statement of comprehensive income and retained earnings
Revenue, other income, finance costs and income tax are calculated in the respective notes to the financial statements.
Cost of sales, dividends paid and the default groups of expenses are calculated on the statement of comprehensive
income and retained earnings. The reporting class codes for these calculations are included in column A and formatted in
green text.
Note: The income statement includes four default expense groups and the codes in column A indicate to which reporting
class individual expense accounts should be linked in order to be included in these expense groups. Users can also
change the description of the expense groups in column B in order to change the groups that are included in the income
statement and also create additional groups if required.
Page 8 of 35
Instructions
Note: Additional expense groups can be created by inserting a new row, copying the formulas in column G and I and
entering a new reporting class code in column A. The new code should then be used to link individual expense accounts On
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to the expense group. When creating new expense reporting class codes, users should take care not to use one of the This
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sheet includes
includes detailed
instructions
existing reporting class codes. on
on setting
setting up
up and
and using
using this
this template.
template.
The retained earnings balances at the start of each financial year are calculated from the trial balance based on the
account(s) that are linked to the "B-RET" reporting code. If the retained earnings balance in the current reporting year is
not equal to the closing balance of the comparative year or the retained earnings balance in the comparative year is not
equal to the balance in the year before that year, the difference will be highlighted in orange in column K or L and the user
will need to review the trial balance in order to determine why the imbalance occurred.
Statement of financial position
Most of the amounts that are included on the balance sheet are calculated in the notes to the financial statements. The
only exceptions are the interest payable, dividends payable and the provision for taxation which are all calculated on the
balance sheet based on the reporting codes that are included in column A. The retained earnings amounts are calculated
on the income statement.
Note: The balance sheet includes three years but only the current and comparative years are included in the printed
pages. The third year is only included in order to facilitate accurate cash flow calculations for the comparative financial
year.
Note: If the balance sheet is not in balance, the appropriate total assets and total liabilities & equity totals will be
highlighted in orange. We suggest that users review the guidance in the Troubleshooting section in order to resolve any
imbalances that may have occurred.
Statement of changes in equity
The retained earnings calculations are based on the amounts that are included on the income statement and the share
capital calculations are based on the amounts that are calculated in note 15.
Statement of cash flows
The profit / (loss) for the year is calculated in the income statement while the income tax and finance costs are also
calculated in the income statement and are added back because the amounts that have been paid are included separately
on the cash flow statement (refer to rows 145 and 146).
The dividends received amounts are calculated in note 4 and deducted in the operating cash flow calculation because the
amounts are included separately under the cash flow from investing activities section of the cash flow statement.
Depreciation, amortisation and fair value adjustments / impairment losses are calculated in notes 8 and 9. The movement
in provisions is calculated on the balance sheet. All of these amounts do not represent actual cash flow movements and
are therefore added back in the operating cash flow calculation.
Gains / (Losses) on the sale of equipment are added back in the operating cash flow calculation because the proceeds
from the sale of equipment is included under the cash flow from investing activities section. Gains on the sale of
equipment are calculated in note 4 and losses are calculated in note 6.
Working capital movements are calculated on the balance sheet - note that a balance sheet for 3 financial years is
required in order to calculate these amounts accurately. If you therefore only include a trial balance for 2 financial years in
the template, the entire closing balances of these working capital items will be included in the cash flow statement for the
comparative financial period.
The interest and income tax paid amounts are calculated by deducting the opening balances and income statement
charges from the closing balances of the respective income tax and interest payable amounts. The net result is that only
the interest and income tax amounts that have actually been paid during the financial period are included in the cash flow
statement.
Page 9 of 35
Instructions
The proceeds from the sale of equipment are calculated by adding or deducting the profit or loss on the sale of equipment
from the book value of the equipment that has been sold. The profit on the sale of equipment is calculated in note 4, the On
Onthis
thissheet:
sheet:
loss on the sale of equipment is calculated in note 6 and the book value of the equipment that has been sold is calculated This
This sheet
sheet includes
includes detailed
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in note 8. on
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template.
The purchases of equipment amounts are calculated by deducting the new finance leases amounts from the additions to
property, plant & equipment that is calculated in note 8. The new finance leases amounts need to be specified as part of
the financial info on the FinInfo sheet.
The purchases of intangible assets and investments are calculated in note 9 and note 10 respectively. As we mentioned
before, the dividends received amounts are calculated in note 4 while the interest received amounts need to be specified
on the FinInfo sheet. We have included this item on the FinInfo sheet because many businesses do not allocate interest
receipts to a separate general ledger account.
The proceeds from the issuance of shares amounts are calculated in note 15. The proceeds from new loans need to be
specified on the FinInfo sheet and the repayment of loan amounts are calculated based on the balance sheet movement
of long term and short term loans and the proceeds from new loans.
The repayment of finance leases amounts are calculated based on the balance sheet movement of the long term and
short term finance lease liabilities and the new finance leases amounts that are specified on the FinInfo sheet. New
finance lease amounts are therefore removed from the additions to property, plant & equipment and also removed from
the finance lease liabilities in order to ensure that only the actual cash repayments of finance leases are included in the
cash flow statement.
The dividends paid amounts are calculated by deducting the opening balance and income statement charges for
dividends from the closing balance of dividends payable. The net result is that only dividends that have actually been paid
during the financial period are included in the cash flow statement.
The cash equivalents at the beginning of the year are calculated based on the balance sheet movements of the cash &
cash equivalents and bank overdraft lines. This is also an important point to note in terms of the closing cash balance - the
closing balance should agree to the cash & cash equivalents note (note 14) and includes the bank overdraft balance!
Note: If the closing cash equivalents balances on the cash flow statement do not agree to the balances that are calculated
in note 14, an error will be displayed in column K. This error is probably a result of an error with the retained earnings
balances but could also be attributed to changes that the user has made to the cash flow statement. We recommend that
you check the accuracy of all the changes that have been made to the template in order to resolve the error.
Note: A retained earnings imbalance can also result in an error on the cash flow statement. This will only occur if the
retained earnings balance at the beginning of the period plus the net profit or loss for the period does not equal the
retained earnings balance at the end of the period. If this is the case, it probably means that an amount has been
allocated to the retained earnings account that should not have been. The retained earnings account should therefore be
investigated and any incorrect allocations should be reallocated to the correct account.
Notes to the financial statements
This section deals with all the default notes that have been added to the financial statements. It is imperative that users
review all the default notes in order to ensure that all the information that is included in the default notes are applicable to
their businesses. Users may also need to add additional disclosure to this section of the financial statements and it is
imperative that any changes that are made are incorporated correctly within the existing template structure, otherwise the
amended financial statements may contain errors!
Note: If you delete some of the default notes that have been included in the standard financial statements, you will need to
change the note numbers of all of the remaining notes by entering a new number in the yellow input cells next to the
appropriate note headings.
Page 10 of 35
Instructions
Note: We have included a page heading which consist of the business name and a financial statement notes title in the
appropriate rows based on the notes that have been included in the standard financial statements. If you delete some of On
Onthis
thissheet:
sheet:
the default notes or add additional notes, you may have to move the rows which contain the page headings to new row This
This sheet
sheet includes
includes detailed
instructions
locations so that the page headings are included at the top of each printed page. on
on setting
setting up
up and
and using
using this
this template.
template.
General information and accounting policies
The general information and accounting policy notes need to be reviewed carefully and the user needs to ensure that the
descriptive text is correct and that all the accounting policies are applicable to the business. The form and nature of the
business in note 1 will probably need to be amended and some of the accounting policies in note 2 may need to be
deleted. Users may also need to include additional accounting policies that are not covered in our default accounting
policy notes.
The business name, country of incorporation and the business address need to be entered on the Set-up sheet. The
depreciation rates that are included in the accounting policy note need to be specified as part of the financial information
on the FinInfo sheet.
Revenue
This note includes two revenue categories namely sale of goods and other revenue. You can add additional categories to
this note by inserting the required number of rows, entering a new reporting class in column A, copying the formulas from
one of the existing rows and linking the new reporting class to the appropriate accounts on the trial balance. Note that all
the new reporting classes should start with the "I-REV" text string.
Note: Whenever you insert new rows in a note, you should always ensure that you also review and adjust the formula in
the total row. If the formula does not include all the relevant items, your balance sheet will not balance.
Other Income
The default note includes three other income items but you can add additional items if required by inserting the required
number of rows, entering a new reporting class in column A, copying the formulas from one of the existing rows and linking
the new reporting class to the appropriate accounts on the trial balance. Note that all the new reporting classes should
start with the "I-OTI" text string.
Finance Costs
The total of the finance costs note is calculated based on all the accounts that are linked to the "I-FIN" reporting class. The
interest on finance leases should be entered on the FinInfo sheet and this amount is deducted from the total in order to
calculate the interest on loans and overdraft amounts. The reason for including the finance lease interest on the FinInfo
sheet is that many entities do not allocate lease interest to separate accounts.
Profit before tax
All the expense items that require separate disclosure should be included under this note. The cost of sales amount is
calculated in the income statement but the reporting codes for all other expense items should be included in column A and
the formulas should be copied from one of the existing rows.
Note: The reporting codes for any additional items that you may want to add should be consistent with the codes that are
used to include the expense categories on the income statement. Simply add additional letters to the default expense
category codes in order to facilitate including the individual items under this note.
Example: In our standard financial statements, the account for foreign exchange losses is included under the Other
Expenses category on the income statement. This expense category has a default code of "I-OTX" and we have therefore
used the code "I-OTXXL" as the reporting code for foreign exchange losses. This means that the expense will be included
in the income statement under Other Expenses but can also be included under the Profit before tax note by using the full
reporting class code.
Page 11 of 35
Instructions
Income Tax Expense

On
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sheet:
The total of the income tax expense note is calculated based on all the accounts that are linked to the "I-TAX" reporting This
This sheet
sheet includes
includes detailed
instructions
class. The default tax charges for the year are calculated in the Deferred Tax note and these amounts are deducted from on
on setting
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and using
using this
this template.
template.
the total in order to calculate the current taxation amounts. The income tax percentages that are included below these
calculations need to be specified on the FinInfo sheet.
Property, Plant & Equipment
The property, plant & equipment note includes three default categories of assets namely land & buildings, plant &
equipment and furniture & fittings. Each of these categories is included in a separate column and the amounts in the Total
column are the sum of these three columns. The cost and accumulated depreciation of these categories are also
displayed separately.
The opening and closing costs of the three categories are calculated based on the accounts on the trial balance that have
been linked to the "B-PPEC" reporting code but a number which refers to the appropriate asset class also needs to be
included in the code. All accounts that are linked to code "B-PPEC1" are included in the first column, accounts linked to
code "B-PPEC2" are included in the second column and accounts that are linked to "B-PPEC3" are included in the third
column.
The cost of assets that have been disposed of during the period should be entered on the FinInfo sheet next to the "F-
PPEDC1", "F-PPEDC2" and "F-PPEDC3" codes and the amounts are included in the note on the same basis as described
in the previous paragraph.
The opening and closing balances and the cost of disposals are therefore determined based on formulas and the
additions line in the note is therefore simply the balancing figure. If you therefore don't enter your disposals amounts
correctly, the additions for the particular asset class will also not be accurate.
Note: The descriptions of the three asset categories can be amended by changing the text in the note but the same
default reporting codes need to be used in order to link the appropriate accounts in the trial balance to the financial
statements.
Note: If you only require one asset category, you can simply use the last ("B-PPEC3" and "F-PPEDC3") reporting codes in
order to only use the calculations in the third column. The calculations in the other columns will include zero amounts
because no accounts will have been linked to these reporting codes but you can clear the contents of these columns if you
don't want to include them in the financial statements.
The accumulated depreciation amounts are calculated in much the same way. The opening and closing balances are
determined based on the accounts on the trial balance that are linked to the "B-PPED1", "B-PPED2" and "B-PPED3"
reporting codes. The accumulated depreciation relating to the disposal of assets needs to be entered on the FinInfo sheet
next to the "F-PPEDD1", "F-PPEDD2" and "F-PPEDD3" reporting codes.
The accumulated depreciation section of the note also includes an additional line for the impairment of assets. Any
impairment losses relating to the three asset categories should be entered on the FinInfo sheet next to the "F-PPEI1", "F-
PPEI2" and "F-PPEI3" reporting codes.
The depreciation charge for the period relating to each asset category is the balancing figure in the note and if you
therefore do not enter the disposal and impairment amounts correctly, the depreciation amounts will also be inaccurate.
We therefore recommend that you compare the calculated depreciation amounts to the appropriate balances of the
depreciation expense accounts on the trial balance.
The carrying amounts of the assets that are held under finance leases are included below the depreciation section and
should be entered on the FinInfo sheet next to the "F-PPELA" reporting code.
Page 12 of 35
Instructions
Intangible Assets
On
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sheet:
The intangible assets note is compiled in much the same way as the property, plant & equipment note. The main This
This sheet
sheet includes
includes detailed
instructions
difference is however that different reporting codes are used in order to calculate the opening and closing balances and on
on setting
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template.
the impairment and amortisation amounts. The note also does not include disposal lines under the cost and accumulated
amortisation sections.
Note: The descriptions of the three asset categories can be amended by changing the text in the note but the same
default reporting codes need to be used in order to link the appropriate accounts in the trial balance to the financial
statements.
Note: If you only require one asset category, you can simply use the last ("B-IPC3" and "F-IPA3") reporting codes in order
to only use the calculations in the third column. The calculations in the other columns will include zero amounts because
no accounts will have been linked to these reporting codes but you can clear the contents of these columns if you don't
want to include them in the financial statements.
Investments
The cost of investments is calculated based on the accounts on the trial balance that are linked to the "B-VEST" reporting
code. Dividend income is also included in this note and is calculated based on all the accounts that are linked to the
dividend income reporting code ("I-OTIDV").
Note: If you require more than one investment to be included in the note, you can add a number to the reporting code
("BVEST1", "B-VEST2", etc.) and enter the new codes in column A next to each of the lines that you want to include. The
appropriate accounts on the trial balance should then be linked to these codes and the formulas for the existing
investment should be copied to the new investment lines. You will also need to insert a Total calculation and link this
calculation to the Investments totals on the balance sheet.
Deferred Tax
The opening and closing balances for deferred tax in the Total column are calculated based on the accounts on the trial
balance that have been allocated to the "B-DTAX" reporting code. The movement for the year in the same column is then
calculated by simply deducting the opening balance from the closing balance.
The default deferred tax note includes three deferred tax categories in three separate columns. The opening and closing
balances in the first column are calculated based on the amounts that are entered next to the "F-DTAX1" reporting code
on the FinInfo sheet. The opening and closing balances of the second column are calculated based on the amounts that
are entered next to the "F-DTAX2" reporting code on the FinInfo sheet.
The opening and closing balances in the third column are calculated by deducting the amounts that are calculated in the
first two columns from the amounts in the Total column. All the deferred tax charges in all the columns are calculated by
deducting the appropriate opening balances from the appropriate closing balances.
Note: The descriptions of the deferred tax categories can be changed without affecting any of the calculations as long as
the reporting code format that has been described in the previous paragraph is retained. Also, if you don't require three
categories of deferred tax, you can clear the contents of the columns that are not required for the purpose of the note (but
make sure that you always retain the third column).
Inventories
This note consists of three items namely raw materials, work in progress and finished goods. The inventory balances for
these default items are calculated based on the reporting codes in column A. You can add additional items if required by
simply entering the appropriate number of new reporting codes in column A, linking the new reporting codes to the
appropriate accounts on the trial balance, copying the formulas from one of the existing rows and ensuring that the total
calculations are accurate.
Page 13 of 35
Instructions
Trade and other receivables

On
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sheet:
This
This sheet
sheet includes
includes detailed
instructions
This note provides for two default trade receivable categories namely trade debtors and prepayments. The codes that are on
on setting
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template.
formatted in green text in column A are used to calculate the appropriate balances that need to be included in these rows.
All the accounts that are linked to these codes on the TB sheet will therefore be included in these calculations.
The amounts that are due by related parties need to be specified on the FinInfo sheet next to the "F-RELDB" reporting
code. These amounts are then deducted from the trade debtors amount and included in a separate row.
Note: You can add additional items if required by simply entering the appropriate number of new reporting codes in column
A, linking the new reporting codes to the appropriate accounts on the trial balance, copying the formulas from the
Prepayments row and ensuring that the total calculations are accurate.
Cash and cash equivalents
The cash and cash equivalents balances are calculated based on the reporting codes that are included in column A. All
the accounts that are linked to these codes on the TB sheet will be included in these calculations. All cash on hand
accounts like petty cash and cash floats should be linked to the "B-CASH" reporting code and all bank accounts that are
not in overdraft should be linked to the "B-BANK" code. The sum of these two calculations is included in the balance sheet
under current assets.
All bank accounts that are in overdraft should be linked to the "B-OVD" reporting code. The balances that are calculated in
this row are included on the balance sheet under current liabilities and deducted from the current asset calculation in order
to determine the net cash and cash equivalents amount. This amount must agree to the cash balance at the end of the
appropriate period that is calculated on the cash flow statement.
Note: The information about the security that is provided for the bank overdraft and the interest rates that are in effect are
provided as an example. You should therefore review these details and amend the text to what is applicable to your bank
overdraft.
Share Capital
The opening and closing share capital balances are calculated based on the accounts on the trial balance that have been
linked to the "B-SCAP" reporting class and the shares issued amounts are calculated by deducting the appropriate
opening balance from the appropriate closing balance.
The number of fully paid shares in issue and the number of authorised shares need to be specified on the FinInfo sheet
next to the "F-SCPAID" and "F-SCAUTH" reporting codes. The par values of the shares are calculated by dividing the
share capital balances by the number of fully paid shares.
Loans
The long term loan balances are calculated based on the accounts that have been linked to the "B-LOAN" reporting class
on the trial balance. The short term portion of long term loans needs to be entered on the FinInfo sheet next to the "F-
LOANST" reporting code and these amounts are then deducted from the long term loan balances.
The long term portion of the long term loans are included under the non-current liabilities on the balance sheet while the
short term portion of long term loans are included under current liabilities on the balance sheet.
Note: The information about the security that is provided for the long term loans and the interest rates that are in effect are
provided as an example. You should therefore review these details and amend the text to what is applicable to your long
term loans.
Page 14 of 35
Instructions
Finance Leases
On
Onthis
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sheet:
This
This sheet
sheet includes
includes detailed
instructions
The non-current finance lease balances are calculated based on the accounts that have been linked to the "B-FLEASE" on
on setting
setting up
up and
and using
using this
this template.
template.
reporting class on the trial balance. The current portion of finance leases needs to be entered on the FinInfo sheet next to
the "F-LEASEST" reporting code and these amounts are then deducted from the non-current finance lease balances.
The non-current portion of the finance leases are included under the non-current liabilities on the balance sheet while the
current portion of finance leases are included under current liabilities on the balance sheet.
The finance leases note also requires that the future finance lease repayments be split into three ageing categories
namely less than one year, greater than one year but less than 5 years and greater than 5 years. These amounts need to
be entered on the FinInfo sheet next to the "F-FLEASEP1", "F-FLEASEP2" and "F-FLEASEP3" reporting classes. Note
that the full lease payments should be included in these totals and not just the capital portions of the finance lease
repayments.
Commitments under operating leases
The operating lease commitments that have been recognised as an expense during the current and comparative periods
need to be entered on the FinInfo sheet next to the "F-OLEASEXP" reporting code. The average lease period also needs
to be specified next to the "F-OLEASEAP" code.
In addition, future operating lease payments that have been contracted need to be disclosed in the same ageing
categories that have been covered under the finance lease section. These totals also need to be entered on the FinInfo
sheet next to the "F-OLEASEP1", "F-OLEASEP2" and "F-OLEASEP3" reporting codes.
Trade and other payables
This note provides for two default trade payables categories namely trade payables and accrued expenses. The codes
that are formatted in green text in column A are used to calculate the appropriate balances that need to be included in
these rows. All the accounts that are linked to these codes on the TB sheet will therefore be included in these calculations.
The amounts that are due to related parties need to be specified on the FinInfo sheet next to the "F-RELCR" reporting
code. These amounts are then deducted from the trade payables amount and included in a separate row.
Note: You can add additional items if required by simply entering the appropriate number of new reporting codes in column
A, linking the new reporting codes to the appropriate accounts on the trial balance, copying the formulas from the Accrued
Expenses row and ensuring that the total calculations are accurate.
Provisions
The opening and closing balances for provisions in the Total column are calculated based on the accounts on the trial
balance that have been allocated to the "B-PROV" reporting code. The additions, charges and reversals for the year in the
same column are calculated by adding the amounts in the three provision category columns.
The default provisions note includes three provision categories in three separate columns. The opening and closing
balances in the first column are calculated based on the amounts that are entered next to the "F-PROV1" reporting code
on the FinInfo sheet. The opening and closing balances of the second column are calculated based on the amounts that
are entered next to the "F-PROV2" reporting code on the FinInfo sheet.
The additions to provisions that are included in the first two columns are calculated based on the amounts that are
specified next to the "F-PROVAD1" and "F-PROVAD2" codes on the FinInfo sheet and the reversals are based on the
amounts that are specified next to the "F-PROVRV1" and "F-PROVRV2" codes. The charges for the year in these two
columns are calculated as a balancing figure and the accuracy of these amounts are therefore dependent on the accuracy
of the other amounts that have been entered.
Page 15 of 35
Instructions
The opening and closing balances in the third column are calculated by deducting the amounts that are calculated in the
first two columns from the amounts in the Total column. The additions and reversals amounts in the third column are On
Onthis
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sheet:
calculated based on the amounts that have been specified next to the "F-PROVAD3" and "F-PROVRV3" codes on the This
This sheet
sheet includes
includes detailed
instructions
FinInfo sheet and the charges for the year is again the balancing figure. on
on setting
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and using
using this
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template.
Note: The descriptions of the provision categories can be changed without affecting any of the calculations as long as the
reporting code format that has been described in the previous paragraphs are retained. Also, if you don't require three
categories of provisions, you can clear the contents of the columns that are not required for the purpose of the note (but
make sure that you always retain the third column).
Contingent Liabilities
This note is provided as an example of the information that needs to be included in a contingent liability note and can be
hidden if it is not required. The information in the default note needs to be replaced by your own info if the note is to be
retained in the financial statements.
Events after the end of the reporting period
This note is provided as an example of the information that needs to be included in a post reporting period event note and
can be hidden if it is not required. The information in the default note needs to be replaced by your own info if the note is
to be retained in the financial statements.
Related Party Transactions
This note includes the amounts owed by and to related parties of the reporting entity. The amounts owed by related parties
need to be entered on the FinInfo sheet next to the "F-RELDB" reporting code and are also disclosed under the trade
receivables note. The amounts owed to related parties need to be entered on the FinInfo sheet next to the "F-RELCR"
reporting code and are also disclosed under the trade payables note.
The note also includes the disclosure of the total remuneration of directors and other key management which needs to be
recorded on the FinInfo sheet next to the "F-REMUN" reporting code.
Troubleshooting
If after linking your trial balance to the appropriate financial statement reporting codes the balance sheet is not in balance,
complete the following steps in order to resolve the imbalance:
■ Check that the appropriate totals above the column headings on the TB sheet are nil. If your trial balance does not
balance, your balance sheet will also not balance.
■ Check whether there are any cells in column A on the TB sheet that are formatted with a red cell background. If a cell
contains a reporting code and the cell is formatted in red, it means that the reporting code is not included in the financial
statements on the AFS sheet. If a cell contains a red cell background and the cell is blank, it means that a reporting code
needs to be entered in the cell.
■ If you've added new reporting codes to the financial statements, ensure that these codes are all linked to the correct
accounts. Also ensure that all the affected totals on the AFS sheet incorporate the rows that you've added.
■ If some of the calculations on the AFS sheet contain a #REF! error, it means that you've deleted cells that form part of
the financial statement calculations. In order to resolve this issue, you will have to undo the delete action or revert back to
a previous saved version of the template. Remember, we recommend hiding the appropriate sections of the financial
statements instead of deleting them.
■ Review all the notes that contain multiple columns and check that you have not allocated any accounts to columns that
may have been cleared. All allocations that end with a "1" will be included in the first column, all allocations that end with a
"2" will be included in the second column and all allocations that end with a "3" will be included in the third column.
■ Refer to the income statement and ensure that the retained earnings at the beginning of both the current and
comparative periods are correct and that no errors are reflected next to the income statement. If an error message is
noted, check that your retained earnings balances have been linked to the correct reporting class codes and that you have
included a trial balance for three annual periods.
Page 16 of 35
Instructions
■ If an error is displayed next to the cash flow statement, it means that the appropriate closing balance on the cash flow On
Onthis
thissheet:
sheet:
statement does not agree to the cash & cash equivalents balance that is calculated in note 14. This could be the result of This
This sheet
sheet includes
includes detailed
instructions
changes that you have made to the template or that the retained earnings balance at the end of the period does not agree on
on setting
setting up
up and
and using
using this
this template.
template.
to the sum of the balance at the beginning of the period and the net profit or loss for the period. Review all changes that
you have made to the template and check the calculation of the retained earnings balances in order to correct the error.
■ If none of these steps resolve the imbalance, we suggest filtering the TB sheet by individual allocation codes and tracing
the totals at the top of the sheet to the appropriate amounts on the financial statements. Start with the income statement
items and make sure that you include all sub codes in your filter selections.
Help & Customization
If you experience any difficulty while using this template and you are not able to find the appropriate guidance in these
instructions, please e-mail us at support@excel-skills.com for assistance. This template has been designed with flexibility
in mind to ensure that it can be used in most business environments. If however you need an Excel based template that is
customized specifically for your business requirements, please e-mail our Support function and provide a brief explanation
of your requirements.
© Copyright
This template remains the intellectual property of www.excel-skills.com and is protected by international copyright laws.
Any publication or distribution of this template outside the scope of the permitted use of the template is expressly
prohibited. In terms of the permitted use of this template, only the distribution of the template to persons within the same
organisation as the registered user or persons outside the organisation who can reasonably be expected to require access
to the template as a direct result of the use of the template by the registered user is allowed. Subsequent distribution of
the template by parties outside of the organisation is however expressly prohibited and represents an infringement of
international copyright laws.
Page 17 of 35
Financial Statements Template
Set-up
© www.excel-skills.com
Business Name ABC Trading (Pty) Limited
Registration Number 2011 999999 99
Business Address 10 Berkshire Avenue, Northcliff, Johannesburg
Country South Africa
On
Onthis
thissheet:
sheet:
Currency Symbol R R
Enter
Enter all
all the
the relevant
relevant business
business details
details on
on this
this sheet
sheet and
and specify
specify the
the
financial
financial year
year end
end month
month andand thethe current
current financial
financial reporting
reporting period.
period.
Year End Period February The
The reporting
reporting period
period that
that isis specified
specified determines
determines which
which annual
annual
periods
periods will
will be
be included
included inin the
the current
current and
and comparative
comparative periods
periods on
on
Reporting Year 2018 the
the financial
financial statements.
statements.
Reporting Date 28 February 2018
Total Number of Pages 12
January
February
March
April
May
June
July
August
September
October
November
December
Page 18 of 35
Financial Statement Reporting Classes
Class Description
Income Statement
I-REVS Sale of goods
I-REVO Other revenue
I-OTIDV Dividends received
On
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sheet:
I-OTIPP Gain on disposal of property, plant & equipment
This
This sheet
sheet contains
contains allall the
the pre-defined
pre-defined financial
financial statement
statement reporting
reporting
I-OTIM Miscellaneous classes
classes thatthat should
should be be used
used to to link
link the
the accounts
accounts on
on the
the trial
trial balance
balance
I-COS Cost of sales to
to the
the calculations
calculations on on the
the financial
statements. The
The classes
classes are are
I-DIS Distribution costs provided
provided in in order
order to
to simplify
simplify the the linking
linking of
of accounts
accounts and
and are
are not
not
linked
linked to to the
the financial
statements. Changes
Changes that
that are
are made
made to to the
the pre-
pre-
I-ADV Advertising & marketing costs
defined
defined classes
classes onon this
this sheet
sheet will
will therefore
therefore have
have no
no effect
effect onon the
the
I-ADM Administrative expenses financial
financial statement
statement calculations.
calculations.
I-OTX Other expenses
I-OTXPP Loss on disposal of property, plant & equipment
I-OTXXL Foreign exchange (gains) / losses
I-FIN Finance costs
I-TAX Income tax expense
I-DIV Dividends
Balance Sheet - Assets
B-PPEC1 Property, plant & equipment - Cost - Column 1
B-PPED1 Property, plant & equipment - Accumulated depreciation - Column 1
B-IPA1 Intangible assets - Accumulated amortisation - Column 1
B-IPC1 Intangible assets - Cost - Column 1
B-VEST Investments
B-DTAX Deferred tax
B-INVFG Finished goods
B-INVRM Raw materials
B-INVWP Work in progress
B-DEBT Trade debtors
B-DEBP Prepayments
B-CASH Cash on hand
B-BANK Cash at bank
B-BOVD Bank overdraft
Balance Sheet - Equity
B-SCAP Share capital
B-RET Retained earnings at start of year
Balance Sheet - Liabilities
B-LOAN Long term loans
B-FLEASE Finance leases
B-CREDT Trade payables
B-CREDA Accrued expenses
B-PROV Provisions
B-INT Interest payable
B-DIV Dividends payable
B-TAX Current tax liability
Page 19 of 35
Trial Balance
© www.excel-skills.com - - - -
Class Acc No Account Description 2016 2017 2018 2019
B-PPEC1 BS-100 Land & Buildings - Cost 1,900,000.00 1,900,000.00 1,950,000.00 -
B-PPEC2 BS-105 Plant & Equipment - Cost 794,677.00 1,102,045.00 1,346,045.00 -
B-PPEC3 BS-110 Furniture & Fittings - Cost 160,000.00 180,000.00 210,000.00 -
B-PPED1 BS-150 Land & Buildings - Accum Depreciation -360,000.00 -390,000.00 -420,000.00 -
B-PPED2 BS-155 Plant & Equipment - Accum Depreciation -182,675.00 -228,590.00 -278,100.00 -
B-PPED3 BS-160 Furniture & Fittings - Accum Depreciation -26,000.00 -42,000.00 -58,000.00 -
B-IPC1 BS-200 Goodwill - Cost 50,000.00 50,000.00 50,000.00 -
B-IPC2 BS-205 Trademarks - Cost 27,500.00 27,500.00 39,500.00 -
B-IPC3 BS-210 Software - Cost 8,500.00 18,500.00 18,500.00 -
B-IPA1 BS-250 Goodwill - Accum Amortization -15,000.00 -20,000.00 -50,000.00 -
B-IPA2 BS-255 Trademarks - Accum Amortization -5,000.00 -7,500.00 -11,450.00 -
B-IPA3 BS-260 Software - Accum Amortization -4,250.00 -8,950.00 -13,650.00 -
B-VEST BS-270 Investments 107,500.00 132,500.00 142,500.00 -
B-CASH BS-300 Petty Cash 3,478.00 2,075.00 2,700.00 -
On
On this
this sheet:
sheet:
B-BOVD BS-305 Bank Overdraft -20,435.00 -115,507.00 -83,600.00 -
AA complete
complete trial
trial balance
balance for
for each
each annual
annual period
period should
should bebe included
included onon this
this
B-BANK BS-310 Bank Accounts sheet 15,000.00 in the 33,000.00 47,000.00 -
sheet and
and each
each account
account in the trial
trial balance
balance should
should bebe linked
linked to
to the
the
B-DEBT BS-500 Trade Debtors appropriate 679,044.00
appropriate financial
financial statement 728,381.00
statement reporting
reporting class
class by728,788.00
by entering
entering or or copying the-
copying the
B-DEBP BS-510 Prepayments appropriate
appropriate class
class code
code into
into column
42,190.00 A.
A. The
The amounts
column45,478.00 that
that are
amounts56,760.00are included
included onon the
the
-
B-INVRM BS-600 Raw Materials financial
statements are
are automatically
automatically
32,892.00 updated
updated based
36,450.00 based on
on the
the classes
42,600.00 classes that
that are
are
-
specified on this
this sheet.
B-INVWP BS-605 Work in progress 1,800.00specified on 900.00 sheet. 1,140.00 -
B-INVFG BS-610 Finished goods 10,358.00 10,570.00 13,640.00 -
B-CREDT BS-700 Trade Creditors -335,190.00 -348,520.00 -275,030.00 -
B-CREDA BS-705 Accruals -55,000.00 -67,000.00 -79,500.00 -
B-INT BS-710 Interest Payable - -1,200.00 -2,000.00 -
B-TAX BS-715 Taxation Provision -173,211.00 -190,316.00 -271,647.00 -
B-DIV BS-720 Dividends Payable -80,000.00 -100,000.00 -150,000.00 -
B-PROV BS-730 Provision for Bonuses -211,637.00 -214,870.00 -214,823.00 -
B-LOAN BS-800 Long Term Liabilities -250,000.00 -260,000.00 -250,000.00 -
B-FLEASE BS-810 Finance Leases -82,931.00 -64,508.00 -44,624.00 -
B-DTAX BS-900 Deferred Tax 2,155.00 2,912.00 -4,309.00 -
B-SCAP BS-950 Share Capital -30,000.00 -40,000.00 -45,000.00 -
B-RET BS-990 Retained Earnings - Opening Balance -1,756,159.00 -2,003,765.00 -2,171,350.00 -
I-REVS IS-100 Sales -4,920,788.00 -5,688,650.00 -6,743,544.00 -
I-REVO IS-105 Royalties -100,000.00 -120,000.00 -120,000.00 -
I-OTIM IS-150 Other Income -5,000.00 - - -
I-OTIDV IS-155 Dividends Received -25,000.00 -25,000.00 -27,000.00 -
I-OTIPP IS-160 Profit on Disposal of Assets - - -61,850.00 -
I-COS IS-200 Cost of Sales 3,755,262.00 4,422,575.00 5,178,530.00 -
I-DIS IS-305 Distribution Costs 76,830.00 79,700.00 97,460.00 -
I-ADV IS-310 Advertising & Marketing 65,200.00 77,100.00 78,090.00 -
I-ADM IS-315 Administration Expenses 523,980.00 660,389.00 810,230.00 -
I-FIN IS-600 Interest Paid 45,390.00 36,712.00 26,366.00 -
I-TAX IS-650 Taxation Paid 167,290.00 189,559.00 278,868.00 -
I-OTX IS-700 Other Expenses 75,210.00 92,690.00 100,500.00 -
I-OTXXL IS-705 Foreign Exchange Loss 3,100.00 - 1,000.00 -
I-OTXPP IS-710 Loss on Disposal of Assets 10,920.00 7,340.00 5,260.00 -
I-DIV IS-900 Dividends Paid 80,000.00 100,000.00 150,000.00 -
Page 20 of 35
Financial Statement Information
Class Description 2016 2017 2018 2019
F-APPDATE Approval date of financial statements 3/15/2016 3/18/2017 3/20/2018 3/20/2019
F-LEASENEW New finance leases 30,000.00 20,000.00 45,000.00 -
F-INTREC Interest received 3,000.00 4,200.00 5,100.00 -
F-LOANNEW Proceeds from new loans 50,000.00 40,000.00 20,000.00 -
F-DEPR1 Depreciation rate - Buildings 2.0% 2.0% 2.0% 2.0%
F-DEPR2 Depreciation rate - Plant & Equipment 20.0% 20.0% 20.0% 20.0%
F-DEPR3 Depreciation rate - Furniture & Fixtures 16.7% 16.7% 16.7% 16.7%
F-LINT Interest paid on finance leases -7,205.00 -6,577.00 -5,116.00 -
F-TAX% Income tax percentage 28.00 28.00 28.00 28.00
F-PPEDC1 Land & Buildings - Disposals - Cost - - - -
F-PPEDC2 Plant & Equipment - Disposals - Cost -88,000.00 -50,000.00 -241,000.00 -
F-PPEDC3 Furniture & Fittings - Disposals - Cost - - -6,000.00 -
F-PPEI1 Land & Buildings - Impairment - - 10,000.00 -
F-PPEI2 Fixtures & Equipment - Impairment - - On
On this
this sheet:
30,000.00
sheet: -
F-PPEI3 Furniture & Fittings - Impairment This
This sheet
sheet contains
contains
- financial
financial statement
statement
- information
3,000.00 that
information that is
is incorporated
incorporated
- into
into
the
the financial
financial -statements
statements but but not
not derived
derived from
from the
the trial
trial balance.
balance. Users
Users are
are
F-PPEDD1 Land & Buildings - Disposals - Accum Depr - - -
therefore
therefore required to enter the appropriate values for each annual period that
required to enter the appropriate values for each annual period that
F-PPEDD2 Plant & Equipment - Disposals - Accum Depr is -62,000.00
is included
included in
in the -40,000.00
the template.
template. The values-204,850.00
The values that
that are
are specified
specified on thissheet
on this sheet are
are
F-PPEDD3 Furniture & Fittings - Disposals - Accum Depr automatically included
- on the financial
- statements
-5,000.00 based
automatically included on the financial statements based on the pre-defined on the pre-defined
-
F-PPELA Carrying amount of leased assets 80,000.00 code
code that
that is
60,000.00is included in
in column
column A.
included40,000.00 A. -
F-IPI1 Goodwill - Impairment - - 25,000.00 -
F-IPI2 Trademarks - Impairment - - - -
F-IPI3 Software - Impairment - - - -
F-DTAX1 Deferred tax - Trademarks 2,800.00 3,700.00 3,100.00 -
F-DTAX2 Deferred tax - Software 1,700.00 1,020.00 340.00 -
F-RELDB Amounts due by related parties 3,000.00 5,000.00 8,000.00 -
F-SCPAID Number of full paid shares 30,000.00 40,000.00 45,000.00 -
F-SCAUTH Number of authorized shares 100,000.00 100,000.00 100,000.00 -
F-LOANST Current portion of long term loans 50,000.00 100,000.00 10,000.00 -
F-FLEASEP1 Minimum finance lease payments: < 1 year 25,000.00 25,000.00 25,000.00 -
F-FLEASEP5 Minimum finance lease payments: 1 - 5 years 75,000.00 50,000.00 25,000.00 -
F-FLEASEP9 Minimum finance lease payments: > 5 years - - - -
F-LEASEST Current portion of finance leases 18,423.00 19,884.00 21,461.00 -
F-OLEASEAP Operating lease average period 3.00 3.00 3.00 -
F-OLEASEXP Operating lease expenses for the year 12,500.00 13,400.00 11,850.00 -
F-OLEASEP1 Minimum operating lease payments: < 1 year 12,000.00 12,000.00 12,000.00 -
F-OLEASEP5 Minimum operating lease payments: 1 - 5 years 28,000.00 30,000.00 24,000.00 -
F-OLEASEP9 Minimum operating lease payments: > 5 years - - - -
F-RELCR Amounts due to related parties 5,000.00 8,000.00 12,000.00 -
F-PROV1 Provision 1 - Claims - Balance 50,000.00 54,300.00 61,800.00 -
F-PROV2 Provision 2 - Leave - Balance 71,200.00 61,500.00 82,650.00 -
F-PROVAD1 Provision 1 - Claims - Additions 32,000.00 58,900.00 61,000.00 -
F-PROVAD2 Provision 2 - Leave - Additions 70,300.00 60,600.00 81,010.00 -
F-PROVAD3 Provision 3 - Bonuses - Additions 90,437.00 99,070.00 70,373.00 -
F-PROVRV1 Provision 1 - Claims - Reversals -8,000.00 -9,200.00 -7,800.00 -
F-PROVRV2 Provision 2 - Leave - Reversals -50,000.00 -45,300.00 -53,600.00 -
F-PROVRV3 Provision 3 - Bonuses - Reversals -1,500.00 -2,400.00 -1,900.00 -
F-REMUN Total remuneration of directors & management 284,300.00 311,700.00 362,900.00 -
Page 21 of 35
ABC Trading (Pty) Limited
(Registration Number: 2011 999999 99)
Financial statements for the year ended 28 February 2018
Table of contents Page

On
Onthis
thissheet:
sheet:
Statement of comprehensive income and retained earnings This
This sheet
sheet includes
includes aa complete
complete set
2set of
of financial
financial statem
statem
automatically
automatically compiled
compiled basedbased on
on the
the current
current reporting
reporting
selected
selected on
on the
the Set-up
Set-up sheet,
sheet, the
the account
account balances
balances thatthat
Statement of financial position the
the TBTB sheet
sheet and
and the
the financial 3
financial information
information that
that is
is include
include
sheet.
sheet. No
No user
user input
input isis required
required on
on this
this sheet
sheet butbut users
users
Statement of changes in equity the
the standard
standard financial
statements4based
based on on their
their own
own rr
necessary.
necessary.
Statement of cash flows 5
Accounting policies and explanatory notes to the financial statements 6 - 12
Approval of financial statements
These financial statements were approved by the board of directors and authorised for issue on 20 March 2018.
Page 22 of 35
Statement of comprehensive income and retained earnings for the year ended 28 February 2018
Notes 2018 2017

R R
Revenue 3 6,863,544 5,808,650

Cost of sales (5,178,530) (4,422,575)
Gross profit 1,685,014 1,386,075
Other income 4 88,850 25,000
Distribution costs (97,460) (79,700)
Advertising & marketing costs (78,090) (77,100)
Administrative expenses (810,230) (660,389)
Other expenses (106,760) (100,030)
Finance costs 5 (26,366) (36,712)
Profit / (Loss) before tax 6 654,958 457,144
Income tax expense 7 (278,868) (189,559)
Profit / (Loss) for the year 376,090 267,585
Retained earnings at start of year 2,171,350 2,003,765
Dividends (150,000) (100,000)
Retained earnings at end of year 2,397,440 2,171,350
Page 23 of 35
Statement of financial position at 28 February 2018
Notes 2018 2017

R R
ASSETS
Non-current assets
Property, plant & equipment 8 2,749,945 2,521,455
Intangible assets 9 32,900 59,550
Investments 10 142,500 132,500
Deferred tax asset 11 0 2,912
2,925,345 2,716,417
Current assets
Inventories 12 57,380 47,920
Trade and other receivables 13 785,548 773,859
Cash and cash equivalents 14 49,700 35,075
892,628 856,854
Total assets 3,817,973 3,573,271
EQUITY & LIABILITIES
Equity
Share capital 15 45,000 40,000
Retained earnings 2,397,440 2,171,350
2,442,440 2,211,350
Non-current liabilities
Long term loans 16 240,000 160,000
Finance leases 17 23,163 44,624
Deferred tax liability 11 4,309 0
267,472 204,624
Current liabilities
Short term loans 16 10,000 100,000
Current portion of finance leases 17 21,461 19,884
Bank overdraft 14 83,600 115,507
Trade payables 19 354,530 415,520
Provisions 20 214,823 214,870
Interest payable 2,000 1,200
Dividends payable 150,000 100,000
Current tax liability 271,647 190,316
1,108,061 1,157,297
Total liabilities 1,375,533 1,361,921
Total equity & liabilities 3,817,973 3,573,271
Page 24 of 35
Statement of changes in equity for the year ended 28 February 2018
Retained
Share Capital Earnings Total
R R R
At 01 March 2016 30,000 2,003,765 2,033,765
Profit / (Loss) for the year 0 267,585 267,585
Dividends 0 (100,000) (100,000)
Shares issued 10,000 0 10,000
At 28 February 2017 40,000 2,171,350 2,211,350
Profit / (Loss) for the year 0 376,090 376,090
Dividends 0 (150,000) (150,000)
Shares issued 5,000 0 5,000
At 28 February 2018 45,000 2,397,440 2,442,440
Page 25 of 35
Statement of cash flows for the year ended 28 February 2018
Notes 2018 2017

R R
Cash flows from operating activities

Profit / (Loss) for the year 376,090 267,585
- Finance costs 26,366 36,712
- Income taxes 278,868 189,559
- Dividends received (27,000) (25,000)
Adjustments for non-cash income and expenses:
- Depreciation 262,360 131,915
- Amortisation 13,650 12,200
- (Fair value gains) / Impairment losses 68,000 0
- Increase / (Decrease) in provisions (47) 3,233
Cash flow included in investing activities:
- (Gains) / Losses on sale of equipment (56,590) 7,340
Changes in operating assets and liabilities:
- Decrease / (Increase) in trade and other receivables (11,689) (52,625)
- Decrease / (Increase) in inventories (9,460) (2,870)
- Increase / (Decrease) in trade and other payables (60,990) 25,330
Cash generated from operations 859,558 593,379
Interest paid (30,666) (39,712)
Income tax paid (190,316) (173,211)
Net cash from operating activities 638,576 380,456
Cash flows from investing activities

Proceeds from sale of property, plant & equipment 93,740 2,660
Purchases of property, plant & equipment (526,000) (357,368)
Purchases of intangible assets (12,000) (10,000)
Purchases of investments (10,000) (25,000)
Interest received 5,100 4,200
Dividends received 27,000 25,000
Net cash used in investing activities (422,160) (360,508)
Cash flows from financing activities

Proceeds from issuance of shares 5,000 10,000
Proceeds from loans 20,000 40,000
Repayment of loans (30,000) (30,000)
Repayment of finance leases (64,884) (38,423)
Dividends paid (100,000) (80,000)
Net cash used in financing activities (169,884) (98,423)
Net increase / (decrease) in cash and cash equivalents 46,532 (78,475)

Cash and cash equivalents at beginning of year (80,432) (1,957)
Cash and cash equivalents at end of year 14 (33,900) (80,432)
Page 26 of 35
Accounting policies and explanatory notes to the financial statements for the year ended
28 February 2018
1. General information
ABC Trading (Pty) Limited is a limited company incorporated in South Africa. Their principal business activities are the
manufacture and sale of frozen foods. The address of its registered office and principal place of business is:
10 Berkshire Avenue, Northcliff, Johannesburg.
2. Basis of preparation and accounting policies
These financial statements have been prepared in accordance with the International Financial Reporting Standard for Small
and Medium-sized Entities issued by the International Accounting Standards Board. They are presented in the currency units
of South Africa.
Revenue recognition
Revenue from sales of goods is recognised when the goods are delivered and title has passed. Revenue is measured at the
fair value of the consideration received or receivable, net of discounts and sales-related taxes collected on behalf of the
government of South Africa.
Borrowing costs
All borrowing costs are recognised in profit or loss in the period in which they are incurred.
Income tax
The income tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based
on the taxable profit for the year.
Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements
and their corresponding tax bases (known as temporary differences). Deferred tax liabilities are recognised for all temporary
differences that are expected to increase taxable profit in the future. Deferred tax assets are recognised for all temporary
differences that are expected to reduce taxable profit in the future, and any unused tax losses or unused tax credits. Deferred
tax assets are measured at the highest amount that, on the basis of current or estimated future taxable profit, is more likely
than not to be recovered. The net carrying amount of deferred tax assets is reviewed at each reporting date and is adjusted to
reflect the current assessment of future taxable profits. Any adjustments are recognised in profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the taxable profit (tax loss) of the periods in which it
expects the deferred tax asset to be realised or the deferred tax liability to be settled, on the basis of tax rates that have been
enacted or substantively enacted by the end of the reporting period.
Property, plant and equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated
impairment losses. Depreciation is charged so as to allocate the cost of assets less their residual values over their estimated
useful lives, using the straight-line method. The following rates are used for the depreciation of property, plant and equipment:
Buildings 2%
Plant & equipment 20%
Furniture & fixtures 16.7%
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of an asset,
the depreciation of that asset is revised accordingly to reflect the new expectations.
Page 27 of 35
28 February 2018 (continued)
Intangible assets
Intangible assets are stated at cost less accumulated amortisation and any accumulated impairment losses. It is amortised
over its estimated life of five years using the straight-line method. If there is an indication that there has been a significant
change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised accordingly to
reflect the new expectations.
Impairment of assets
At each reporting date, property, plant and equipment and intangible assets are reviewed to determine whether there is any
indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable
amount of any affected asset (or group of related assets) is estimated and compared with its carrying amount. If the
estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an
impairment loss is recognised immediately in profit or loss.
Similarly, at each reporting date, inventories are assessed for impairment by comparing the carrying amount of each item of
inventory (or group of similar items) with its selling price less costs to complete and sell. If an item of inventory (or group of
similar items) is impaired, its carrying amount is reduced to selling price less costs to complete and sell, and an impairment
loss is recognised immediately in profit or loss.
If an impairment loss subsequently reverses, the carrying amount of the asset (or group of related assets) is increased to the
revised estimate of its recoverable amount (selling price less costs to complete and sell, in the case of inventories), but not
in excess of the amount that would have been determined had no impairment loss been recognised for the asset (or group of
related assets) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of
ownership of the leased asset to the company. All other leases are classified as operating leases.
Rights to assets held under finance leases are recognised as assets of the company at the fair value of the leased property
(or, if lower, the present value of minimum lease payments) at the inception of the lease. The corresponding liability to the
lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned
between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining
balance of the liability. Finance charges are deducted in measuring profit or loss. Assets held under finance leases are
included in property, plant and equipment, and depreciated and assessed for impairment losses in the same way as
owned assets.
Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the term of the lease.
Inventories
Inventories are stated at the lower of cost and selling price less costs to complete and sell. Cost is calculated using the
first-in, first-out (FIFO) method.
Trade and other receivables
Most sales are made on the basis of normal credit terms, and the receivables do not bear interest. Where credit is extended
beyond normal credit terms, receivables are measured at amortised cost using the effective interest method. At the end of
each reporting period, the carrying amounts of trade and other receivables are reviewed to determine whether there is any
objective evidence that the amounts are not recoverable. If so, an impairment loss is recognised immediately in profit or loss.
Page 28 of 35
Trade payables
Trade payables are obligations on the basis of normal credit terms and do not bear interest.
Bank loans and overdrafts
Interest expenses are recognised on the basis of the effective interest method and are included in finance costs.
3. Revenue
2018 2017
R R
Sale of goods 6,743,544 5,688,650

Other revenue 120,000 120,000
6,863,544 5,808,650
4. Other income
2018 2017
R R

Gain on disposal of property, plant & equipment 61,850 0
Miscellaneous income 0 0
88,850 25,000
5. Finance costs
2018 2017
R R
Interest on loans and overdraft (21,250) (30,135)

Interest on finance leases (5,116) (6,577)
(26,366) (36,712)
6. Profit before tax
The following items have been recognised as expenses (income) in determining profit before tax:
2018 2017
R R
Cost of inventories recognised as expense 5,178,530 4,422,575

Foreign exchange (gains) / losses (1,000) 0
Loss on disposal of property, plant & equipment (5,260) (7,340)
7. Income tax expense

2018 2017
R R
Current taxation (271,647) (190,316)

Deferred taxation (refer to note 11) (7,221) 757
(278,868) (189,559)
Page 29 of 35
Income tax is calculated at 28.0 per cent (2017: 28.0 per cent) of the estimated assessable profit for the year.
Page 30 of 35
8. Property, plant & equipment

Land & Plant & Furniture &
Buildings Equipment Fittings Total
R R R R
Cost
At 01 March 2017 1,900,000 1,102,045 180,000 3,182,045
Additions 50,000 485,000 36,000 571,000
Disposals 0 (241,000) (6,000) (247,000)
At 28 February 2018 1,950,000 1,346,045 210,000 3,506,045
Accumulated depreciation
At 01 March 2017 390,000 228,590 42,000 660,590
Depreciation for the year 20,000 224,360 18,000 262,360
Impairment 10,000 30,000 3,000 43,000
Disposals 0 (204,850) (5,000) (209,850)
At 28 February 2018 420,000 278,100 58,000 756,100
Carrying amount
At 28 February 2018 1,530,000 1,067,945 152,000 2,749,945
The carrying amount of the company’s property, plant & equipment includes an amount of R40,000 (2017: R60,000) in
respect of assets held under finance leases.
9. Intangible assets
Goodwill Trademarks Software Total
R R R R
Cost
At 01 March 2017 50,000 27,500 18,500 96,000
Additions 0 12,000 0 12,000
At 28 February 2018 50,000 39,500 18,500 108,000
Accumulated amortization
At 01 March 2017 20,000 7,500 8,950 36,450
Amortisation for the year 5,000 3,950 4,700 13,650
Impairment 25,000 0 0 25,000
At 28 February 2018 50,000 11,450 13,650 75,100
Carrying amount
At 28 February 2018 0 28,050 4,850 32,900
10. Investments
2018 2017
R R
Cost of investment - XYZ Company 142,500 132,500
Page 31 of 35
11. Deferred tax
The following are the deferred tax liabilities (assets) recognised by the company:
Foreign
Trademarks Software Exchange Loss Total
R R R R
At 01 March 2017 3,700 1,020 (7,632) (2,912)

Charge (credit) for the year (600) (680) 8,501 7,221
At 28 February 2018 3,100 340 869 4,309
The company has not recognised a valuation allowance against the deferred tax assets because, on the basis of past
years and future expectations, management considers it probable that taxable profits will be available against which the
future income tax deductions can be utilised.
12. Inventories
2018 2017
R R
Raw materials 42,600 36,450

Work in progress 1,140 900
Finished goods 13,640 10,570
57,380 47,920
13. Trade and other receivables

2018 2017
R R
Trade debtors 720,788 723,381

Amounts due by related parties 8,000 5,000
Prepayments 56,760 45,478
785,548 773,859
14. Cash and cash equivalents

2018 2017
R R
Cash on hand 2,700 2,075

Cash at bank 47,000 33,000
49,700 35,075
Bank overdraft (83,600) (115,507)
(33,900) (80,432)
The bank overdraft is secured by a floating lien over land & buildings owned by the company with a carrying amount of
R1,530,000 at 28 February 2018 (R1,510,000 at 28 February 2017). Interest is payable on the bank overdraft at 1 point
above the prime interest rate.
Page 32 of 35
15. Share capital
At 01 March 2017 40,000

Shares issued during the year 5,000
At 28 February 2018 45,000
The share capital balance as at 28 February 2018 comprise 45,000 ordinary shares (2017: 40,000) with a par value of
R1.00 fully paid, issued and outstanding. An additional 55,000 shares (2017: 60,000) are legally authorised
but unissued.
16. Loans
2018 2017
R R
Non-current
Long term loans 240,000 160,000
Current
Short term loans 10,000 100,000
The long term loans are secured by a floating lien over land & buildings owned by the company with a carrying amount of
R1,530,000 at 28 February 2018 (R1,510,000 at 28 February 2017). Interest is payable on the 5-year bank loan at a
fixed rate of 9 per cent of the principal amount.
17. Finance leases
The future minimum lease payments are as follows:

2018 2017
R R
Within one year 25,000 25,000

Later than one year but within five years 25,000 50,000
Later than five years 0 0
50,000 75,000
The obligation is classified as:
2018 2017
R R
Current liability 21,461 19,884

Non-current liability 23,163 44,624
44,624 64,508
18. Commitments under operating leases
The company rents equipment under operating leases. The leases are for an average period of 3 years, with fixed rentals
over the same period.
2018 2017
R R
Operating lease payments recognised as an expense during the year 11,850 13,400
Page 33 of 35
At year-end, the company has outstanding commitments under non-cancellable operating leases that fall due as follows:
2018 2017
R R
Within one year 12,000 12,000

Later than one year but within five years 24,000 30,000
Later than five years 0 0
36,000 42,000
19. Trade and other payables

2018 2017
R R
Trade payables 263,030 340,520

Amounts due to related parties 12,000 8,000
Accrued expenses 79,500 67,000
354,530 415,520
20. Provisions
Claims Leave Bonuses Total
R R R R
At 01 March 2017 54,300 61,500 99,070 214,870

Charged/(credited) to profit or loss:
- Additions during the year 61,000 81,010 70,373 212,383
- Charges during the year (45,700) (6,260) (97,170) (149,130)
- Reversed during the year (7,800) (53,600) (1,900) (63,300)
At 28 February 2018 61,800 82,650 70,373 214,823
21. Contingent liabilities
During 20?? a customer initiated proceedings against the company for faulty products. The customer asserts that
its total losses are CU?50,000 and has initiated litigation claiming this amount. The company’s legal counsel do not
consider that the claim has merit and no provision has therefore been recognised in these financial statements.
22. Events after the end of the reporting period
On 14 March 20?? the directors voted to declare a dividend of CU?1.00 per share (CU?30,000 total) payable on 15 April
20?? to shareholders registered on 31 March 20??. Because the obligation arose after the end of the reporting period,
a liability is not shown in the statement of financial position at 28 February 20??.
23. Related party transactions

2018 2017
R R
Amounts owed by related parties and included in trade receivables 8,000 5,000
Amounts owed to related parties and included in trade payables (12,000) (8,000)
The total remuneration of directors and other members of key management in 2018 (including salaries and benefits) was
R362,900 (2017: R311,700).
Page 34 of 35
Trial Balance Import Control
© www.excel-skills.com - ok
Acc No Account Description Amount Check Amount
BS-100 Land & Buildings - Cost 1,950,000.00 ok 1,950,000.00
BS-105 Plant & Equipment - Cost 1,346,045.00 ok 1,346,045.00
BS-110 Furniture & Fittings - Cost 210,000.00 ok 210,000.00
BS-150 Land & Buildings - Accum Depreciation -420,000.00 ok -420,000.00
BS-155 Plant & Equipment - Accum Depreciation -278,100.00 ok -278,100.00
BS-160 Furniture & Fittings - Accum Depreciation -58,000.00 ok -58,000.00 On
On this
this sheet:
sheet:
BS-200 Goodwill - Cost 50,000.00 ok
The
The calculations
calculations on
50,000.00 on this
this sheet
sheet enables
enables users
users to
to review
review the the sequence
sequence of of
trial
trial balance
balance accounts
accounts before
before copying
copying the
the account
account balances
balances to to the
the TB
TB
BS-205 Trademarks - Cost 39,500.00 ok 39,500.00
sheet. The sequence of accounts can be amended until no errors are
sheet. The sequence of accounts can be amended until no errors are
BS-210 Software - Cost 18,500.00 ok reflected and
and the
18,500.00
reflected the calculations
calculations inin column
column EE round
round all
all trial
trial balance
balance amounts
amounts
BS-250 Goodwill - Accum Amortization -50,000.00 ok to
to the
the nearest
nearest integer
-50,000.00 integer value
value thereby
thereby ensuring
ensuring that
that allall the
the totals
totals on
on the
the
BS-255 Trademarks - Accum Amortization -11,450.00 ok -11,450.00 financial
statements are
are accurate.
accurate.
BS-260 Software - Accum Amortization -13,650.00 ok -13,650.00
BS-270 Investments 142,500.00 ok 142,500.00
BS-300 Petty Cash 2,700.00 ok 2,700.00
BS-305 Bank Overdraft -83,600.00 ok -83,600.00
BS-310 Bank Accounts 47,000.00 ok 47,000.00
BS-500 Trade Debtors 728,788.00 ok 728,788.00
BS-510 Prepayments 56,760.00 ok 56,760.00
BS-600 Raw Materials 42,600.00 ok 42,600.00
BS-605 Work in progress 1,140.00 ok 1,140.00
BS-610 Finished goods 13,640.00 ok 13,640.00
BS-700 Trade Creditors -275,030.00 ok -275,030.00
BS-705 Accruals -79,500.00 ok -79,500.00
BS-710 Interest Payable -2,000.00 ok -2,000.00
BS-715 Taxation Provision -271,647.00 ok -271,647.00
BS-720 Dividends Payable -150,000.00 ok -150,000.00
BS-730 Provision for Bonuses -214,823.00 ok -214,823.00
BS-800 Long Term Liabilities -250,000.00 ok -250,000.00
BS-810 Finance Leases -44,624.00 ok -44,624.00
BS-900 Deferred Tax -4,309.00 ok -4,309.00
BS-950 Share Capital -45,000.00 ok -45,000.00
BS-990 Retained Earnings - Opening Balance -2,171,350.00 ok -2,171,350.00
IS-100 Sales -6,743,544.00 ok -6,743,544.00
IS-105 Royalties -120,000.00 ok -120,000.00
IS-150 Other Income - ok -
IS-155 Dividends Received -27,000.00 ok -27,000.00
IS-160 Profit on Disposal of Assets -61,850.00 ok -61,850.00
IS-200 Cost of Sales 5,178,530.00 ok 5,178,530.00
IS-305 Distribution Costs 97,460.00 ok 97,460.00
IS-310 Advertising & Marketing 78,090.00 ok 78,090.00
IS-315 Administration Expenses 810,230.00 ok 810,230.00
IS-600 Interest Paid 26,366.00 ok 26,366.00
IS-650 Taxation Paid 278,868.00 ok 278,868.00
IS-700 Other Expenses 100,500.00 ok 100,500.00
IS-705 Foreign Exchange Loss 1,000.00 ok 1,000.00
IS-710 Loss on Disposal of Assets 5,260.00 ok 5,260.00
IS-900 Dividends Paid 150,000.00 ok 150,000.00

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The following sheets are included in the template:

Adding new financial periods

Trial balance check & import

Rounding in financial statements

Annual Financial Statements

Customizing the standard financial statements

Statement of comprehensive income and retained earnings

Statement of financial position

Statement of changes in equity

Statement of cash flows

Notes to the financial statements

Profit before tax

Income Tax Expense

Property, Plant & Equipment

Trade and other receivables

Cash and cash equivalents

Commitments under operating leases

Trade and other payables

Events after the end of the reporting period

Related Party Transactions

Help & Customization

Registration Number 2011 999999 99

Business Address 10 Berkshire Avenue, Northcliff, Johannesburg

Country South Africa

Reporting Date 28 February 2018

Total Number of Pages 12

Table of contents Page

Accounting policies and explanatory notes to the financial statements 6 - 12

Approval of financial statements

Notes 2018 2017

Revenue 3 6,863,544 5,808,650

Statement of financial position at 28 February 2018

Notes 2018 2017

EQUITY & LIABILITIES

Statement of changes in equity for the year ended 28 February 2018

At 01 March 2016 30,000 2,003,765 2,033,765

Profit / (Loss) for the year 0 267,585 267,585

Dividends 0 (100,000) (100,000)

Shares issued 10,000 0 10,000

At 28 February 2017 40,000 2,171,350 2,211,350

Profit / (Loss) for the year 0 376,090 376,090

Dividends 0 (150,000) (150,000)

Shares issued 5,000 0 5,000

At 28 February 2018 45,000 2,397,440 2,442,440

Statement of cash flows for the year ended 28 February 2018

Notes 2018 2017

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Net increase / (decrease) in cash and cash equivalents 46,532 (78,475)

2. Basis of preparation and accounting policies

Property, plant and equipment

Trade and other receivables

Bank loans and overdrafts

Sale of goods 6,743,544 5,688,650

Dividends received 27,000 25,000

Interest on loans and overdraft (21,250) (30,135)

6. Profit before tax

Cost of inventories recognised as expense 5,178,530 4,422,575

7. Income tax expense

Current taxation (271,647) (190,316)