Limited

Companies
Financial
Statements

Financial Statements

• Company Law
• Accounting profession accounting standards

Must • FRSSE (micro companies)

• FRS 101, FRS 102 and FRS 103 (UK and
Ireland companies that are not listed on
comply Stock Exchange from 1 Jan 2015)
• International Accounting Standards (IAS)

with
and International Financial Reporting
Standards (IFRS) if listed company in EU
since 1 Jan 2005
• Stock exchange rules – if listed

Financial Statements

Level of detail Financial Statements

• Face of financial statements
• Notes to the accounts
Required:
• Statement of Profit or Loss
• Statement of Changes in
Equity
• Statement of Financial Position
• Statement of Cash Flows
• Notes to the accounts

1
 Revenue
Cost of sales
Gross profit
Statement of Other income
Profit/Loss Distribution costs
[Income Administration expenses
Statement]– Other expenses
main Finance Costs
headings Profit before tax
Taxation
Profit for the period

Statement of Changes in Equity

Shows movement in all elements of equity

and reserves [shareholders funds] from start
of the year to the end of the year

Shows total income and expense recognised

in equity during the year

Shows dividends paid to shareholders

• Non current assets

Statement • Property, plant and equipment

of •
•
Intangible assets
Financial assets
Financial • Investments

Position– • Current assets

• Inventories
main • Trade and other receivables

headings • Cash and cash equivalents

• Total assets

2
 • Equity
• Issued capital and reserves
• Minority interest
Statement • Non current liabilities
of • Non-current interest-bearing liabilities

Financial • Current liabilities

• Trade and other payables
Position– • Tax liabilities

main • Provisions
• Total Liabilities
headings • Total Equity and Liabilities

Statement of Cash Flows

See IAS 7

n/a for this module, will be covered

in accounting stream of B Comm

Notes to the Financial Statements

Presents information about the
basis of preparation of the
financial statements
• E.g. Going concern basis, applying the
accruals concept
Specific accounting policies
selected and applied for significant
transactions and events
• E.g. Property, plant and equipment is
measured at cost, plant and machinery is
depreciated on a straight line basis over a
useful life of 15 years, assuming nil
residual value

To provide additional information

To disclose information required which is not presented on the face
by IAS’s/IFRS’s that is not of the financial statements but is
presented elsewhere
necessary for a fair presentation

3
 Examples of the type of information to
be disclosed in Notes

Details of property plant and equipment

Details of trade and other receivables

Details of Inventories

Details of employee benefits

Details of equity capital and reserves

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