会计学英文版经典教程 (4)

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Understand presentation requirements for Statement of Changes in Equity
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Key reconciling items
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• All financial statements, except cash flow info, to be prepared using accrual basis.
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Materiality and Aggregation
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Offsetting
• Not allowed to offset assets and liabilities, income and expenses
• Offsetting is different from netting
tool
• Top source of information for shareholders, lenders, potential investors etc.
• Provide information about the company from company visions, goals to financial information and changes in strategy.
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Know the general features of financial statements
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Complete set of financial statements
• Acknowledgement of responsibility for preparing financial statements by management
• Auditor’s report • 3 types of opinions:
Unqualified Qualified Adverse
• Cannot rectify inappropriate policies
▫ By notes or explanatory material
Байду номын сангаас
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Accrual basis and going concern
• Going concern: Entity intends to, and has ability to, operate into the foreseeable future.
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Statement of Financial Position
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Statement of Financial Position
• Liquidity • Current assets and current liabilities
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Categorizing expenses by nature
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Categorizing expenses by function
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Frequency of reporting
• Entities are to present financial info at least annually
• Listed companies might have to publish interim reports
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Notes to the accounts
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management personnel • Organization structure • Awards and accolades • Key markets and products • Operating Statistics and financial highlights
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Statement of financial postion
• Account format
Assets
• Report format
Assets Liabilities Equities
Liabilities Equities
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Comparative information and
Consistency of presentation
• Numbers from previous periods must be disclosed
Minimum 2 years of information Under certain situations, 3 ears Comparatives made in narrative and descriptive
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Accounting changes
• Dealt with in IAS 8 • Changes due to new accounting standards or
pronouncements • Changes in accounting estimates • Changes in accounting policies • Prior-period errors
Fair presentation and compliance with IFRS
• Faithful representation of effects of transactions
▫ Cannot selectively apply standards and proclaim compliance with IFRS
Appreciate the role of annual reports as a communication tool
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Chapter 4
Presentation of Financial Statements
Annual reports as a communication
Name of reporting entity
If consolidated or individual entity’s account
Date of the end of reporting period
Presentation currency used
Level of rounding
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Statement of financial
position
Statement of comprehensive
income
Statement of changes in
equity
Statement of cash flows
Notes
Proper labeling of financial statements
• Substance over form
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Typical structure of an annual report
Corporate
Analysis and
information commentaries
Other statements or
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Analysis and commentaries
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Other statements and disclosure
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Financial Statements
• Accounts can be aggregated if they are immaterial • An item is material when its omission or
misstatement can influence the economic decisions of users based on financial statements.
information
• Firms are expected to maintain presentation and classification of items period to period