Premium Essay

Final Accounts for Companies as Per Ias1

In: Business and Management

Submitted By kdiya
Words 2842
Pages 12
FINAL ACCOUNTS FOR COMPANIES

4.1 IAS 1 Presentation of financial statements

IAS 1 identifies three fundamental assumptions that must be taken into account when preparing accounts:

Going concern

Accruals

Consistency

'IAS 1 Presentation of financial statements was published in 1997 and revised in 2004.

IAS 1 gives details about the general requirements and what it says about accounting policies and fundamental assumptions and on the format and content of financial statements

4.1.1 Objectives and scope

The main objective of IAS 1 is:

to prescribe the basis for presentation of general purpose financial statements, to ensure comparability both with the entity's financial statements of previous periods and with the financial statements of other entities.'

IAS 1 applies to all general purpose financial statements prepared and presented in accordance with
International Financial Reporting Standards (IFRSs).

4.1.2 Purpose of Financial Statements

The objective of financial statements is to provide information about the financial position, performance and cash flows of an entity that is useful to a wide range of users in making economic decisions. They also show the result of management's stewardship of the resources entrusted to it.

In order to fulfill this objective, financial statements must provide information about the following aspects an entity's results.

• Assets • Liabilities
• Equity
• Income and expenses (including gains and losses)
• Other changes in equity • Cash flows

Along with other information in the notes and related documents, this information will assist users in predicting the entity future cash flows.
According to IAS 1, a complete set of financial statements includes the following components.
(a)…...

Similar Documents

Premium Essay

Mngt 5000 Final Paper, Bp Company

...Final Paper Management 5000 – OGF1 2010 Management Statement of the Problem From the perspective of strategic planning and leadership, how could British Petroleum Company (BP) have minimized the risk of the deepwater oil drilling incident of April 20, 2010, and done a better job of crisis management after the fact? This environmental emergency was the result of the Deepwater Horizon drilling rig explosion which killed 11 workers, injured 17 others, and resulted in a sea-floor oil gusher leaking 185 million gallons of crude oil into the Gulf of Mexico. The media is filled with stories criticizing BP for not taking proper precautions to prevent the accident, and for their public response immediately following it. The following are representative of the headlines covering media outlets across the country and internationally: “BP touts itself as ‘green’, but faces PR disaster with BP oil spill” (Farhi, 2010), “Another Torrent BP Works to Stem: Its C.E.O.” (Krauss, 2010) “BP contingency plans for dealing with oil spill was riddled with errors” (Clark, 2010), “BP’s failures made worse by PR mistakes” (Weber, 2010), “BP oil spill: Leadership and IT failure (Krigsman, 2010). Statement of major relevant principles to be applied The major relevant principles to be applied to this analysis are strategic planning and leadership as they relate to crisis management. Strategic Planning Strategic planning is the process by which organizations define their strategy and make......

Words: 2199 - Pages: 9

Premium Essay

Account

...AC 410B Intermediate Accounting II Final Exam Topics Chapter 11: Depreciation, Impairments, and Depletion Questions 1. Explain the meaning of depreciation. 2. Describe factors involved in the depreciation process. 3. Describe the different methods of depreciation. 4. Identify the conditions for impairment of fixed assets. 5. Explain the treatment of impairments for different kinds of assets. 6. Describe the full cost vs. successful efforts concepts for depletion. 7. Explain liquidating dividends. 8. Explain the required disclosures related to depreciation and depletion. Exercises 1. Calculate depreciation using the following methods: [E11-6] a. activity method b. straight-line method c. sum-of-the-years’ digits method d. declining balance method e. group & composite methods [E11-9] 2. Calculate partial-period depreciation. 3. Calculate depreciation based on revision of salvage value or estimated life. [E11-11], [E11-13] 4. Conduct a recoverability test for impairment. [E11-17] 5. Determine the amount of impairment to be recorded on a fixed asset. [E11-17] 6. Prepare the journal entries to record: a. depreciation expense b. the impairment of a fixed asset c. the restoration of impairments d. impairment and restoration of impairment for an asset held for disposal [E11-17] e. depletion of a natural......

Words: 1647 - Pages: 7

Premium Essay

Partnership Final Account

...proportion 75% and 25%. The partnership agreement provided as follows: (a) Interest at the rate of 10% per annum is to be allowed on the partners’ Capital Account balances. (b) Interest on drawings was to be calculated at 4% per annum. (c) Top was allowed a salary of RM400 per month. (d) Interest on partner loan was 6% per annum. Trial Balance As At 31 December 2009 RM Capital : Top : Middle Current Account : Top : Middle Drawings – Middle (1 October 2009) Loan from Top Furniture and Fittings (cost RM50,000) Premises Debtor and creditors Cash and bank Gross profit Employees Salary Insurance Rent Interest on Loan - Top Partner's Salary - Top Provision for bad debts Discount Stock 31 December 2009 RM 20,000 10,000 400 980 3,200 15,000 28,750 28,000 15,200 490 4,640 1,300 2,040 580 3,000 9,120 5,980 27,210 1,000 420 360 1,310 89,490 89,490 Additional information: (i) Loan interest still outstanding for the year; (ii) Part of premises was sub-let to a tenant with annual rent RM900; (iii) Insurance premium RM1,300 included RM300 is for the period January 2010; (iv) Bad debts written off RM200 and provision of doubtful debts is adjusted to RM750; (v) Provided depreciation of furniture and fittings at 10% p.a using straight line method; You are require to prepare: (in vertical form) (a) Profit and Loss Account for the year ended 31 December 2009 (b) Profit and Loss Appropriation Account for the year ended 31 December 2009 (c) Balance Sheet As At 31 December......

Words: 285 - Pages: 2

Premium Essay

Ias1 - Canada

...owners, showing separately contributions by and distributions to owners and changes in ownership interests in subsidiaries that do not result in a loss of control. IFRS requires that the reconciliation of the carrying amount at the beginning and ending of the reporting period for each component of equity on the face of the financial statements. CANADIAN GAAP - IFRS COMPARISON SERIES 4 Presentation of Income Statement CANADIAN GAAP Under Canadian GAAP, in arriving at the income or loss before discontinued operations and extraordinary items, the income statement should distinguish at least the following items: (a) Revenue recognized; (b) Income from investments, disclosing income from: (i) Companies subject to significant influence; (ii) Other affiliated companies; and (iii) All other investments. (c) Finance income from direct financing or sales-type leases; (d) Income from operating leases; (e) Government assistance credited direct to income; (f) The amount charged for amortization of property, plant and equipment; (g) The amount charged for amortization of intangible assets subject to amortization; (h) The amount of goodwill impairment losses; (i) The amount charged for amortization of property under a capital lease; (j) The amount of exchange gain or loss included in net income; (k) Interest expense, segregating interest on indebtedness initially incurred for a term of more than one year and other interest; (l) Interest expense related to capital lease......

Words: 3010 - Pages: 13

Premium Essay

Account

...Business Folio First Phase - Business Information Introduction Phase (Team Assignment) DUE DATE: in Week 5 (10 marks) LOCATION: both online electronic submission through the Blackboard and hard copy submission to SIM are required INTRODUCTION OF BUSINESS FOLIO The Business Folio consists of two related phases. This scaffolding exercise aims to reach the learning outcome that you will be able to record financial information through both manual accounting information systems and computerised accounting information systems, and compare and consolidate your knowledge within both systems. You will be given structured instructions to set up a business, create your own Chart of Accounts, and prepare a set of transations within a general journal. This forms the Business Information Introduction Phase. Based on the feedback from your tutors from this phase and supporting materials, demonstrations, instructions on computerised accounting system, you will then process the information that you created in the Introduction phase, through a computerised accounting system. Capability in this application is achieved through the development of generic capabilities. Therefore, the best preparation for this folio is to study the lecture materials and the readings from the text as well as consider real life examples of businesses. Each phase of your Business Folio must be accompanied by an Assignment Cover Sheet. Each phase of Business Folio must be submitted electronically......

Words: 3329 - Pages: 14

Premium Essay

Accounts

...67 Coppin Street, Bayside, VIC 3010 Tom Blakeney, a semi-retired truck driver started a retail business on 1 February 2014, supplying two grades of truck tyres for a specific truck model. They are Standard TT and Premium TT, and TT stands for Truck Tyres. As most of his customers are truck companies, Tom is not required to provide delivery services. Therefore, he did not have to invest in motor vehicles. Instead, he invested in equipment for loading and unloading tyres by paying $10,000 cash on the day of commencement of business. Tom sees great potential in this business and endeavours to maintain double entry accounting records. It has been two months since the start of business and now, he has engaged your service as an accountant to develop the double entry recording system. As there are small expenses paid directly by Tom, you recommended a Petty Cash Advance be established and a Petty Cash Book maintained. The trial balance below shows the summary of transactions in the first two months of business, now carried forward to the 1st of April 2014. CHOICE TRUCK TYRES TRIAL BALANCE AS AT 1 APRIL 2014 ACCOUNT Cash at bank Accounts Receivable Equipment (paid cash on 1 February 2014) Accounts Payable Loan from BankOnUs Ltd Capital – Tom Blakeney Drawings – Tom Blakeney (Equity) Sales Purchases Electricity Equipment Running Costs Insurance - Equipment Interest Office Supplies Rent Telephone Wages TOTAL DEBIT $ 15,320 46,500 10,000 25,000 41,670 20,000 5,000 66,000 65,000......

Words: 1202 - Pages: 5

Premium Essay

Account

...1 Aldi Supermarkets Marketing Report 2 Contents Contents and Appendix 2 Executive Summary 3 Audit and explanation of the business and its current customer related marketing strategy. 5 The Four P’s 5 Identifying and recommending new marketing objectives 8 Corporate and Social Responsibility Initiatives 9 Recommending new marketing objectives 10 The Marketing of Halal in the United Kingdom 11 Recommending new marketing objectives 12 Company Rebranding Initiative 12 Recommending new marketing objectives 13 Conclusion 14 SWOT Analysis 16 References 21 Insert 1.0: Marketing and Selling Models 28 Insert 1.1: Needle. D Model 29 Insert 1.2: New Organisational Structure 30 Insert 1.3: Porters Five Forces Model (1980) 31 Insert 1.4: Porters Generic Forces Model 32 Insert 1.5: Ansoff’s Matrix 33 Insert 1.6: Twelve-Month Marketing Plan: Gantt Chart 34 Notes to the Examiner:  All additional information is stored in the Appendix  The word count excludes the following: I. All references and bibliographies II. All references to diagrams and tables. III. All content within tables IV. Labels and titles of tables and diagrams V. The Learning Outcomes as Titles VI. The Contents Page VII. All content on page 2, 3 & 4  All Harvard referencing in this assignment is from the formatting illustrated in the Anglia Ruskin University document. http://libweb.anglia.ac.uk/referencing/harvard/htm  I would like all ‘Inserts’, which have been placed within the main......

Words: 9411 - Pages: 38

Premium Essay

Account

...quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a purchase order to a supplier is a legal offer to buy products or services. If the seller agrees to selling to the buyer it forms a contract between them. In this way, companies use the Purchase Order as it allows the buyers to clearly and explicitly communicate formally their intentions to the sellers of buying a certain product or service. Therefore, the purpose of a purchase order is specify the details of an order by a customer, and provides a document to support the entry and shipment of that order. The purchase order lists each item that the customer wishes to order, the quantity and expected price of each item, where the order is to be shipped, and the date the ordered is needed by. When a customer sends a purchase order the selling company uses that information to enter the order into their system to setup the shipment of the order. Once the order has been placed, and the items shipped, the seller then invoices the customer for the cost of goods shipped. The purchase order usually then gets filed, along with the invoice and shipping documents, as documentary evidence of a sale. In most companies, especially large ones, when they need to buy something they send a numbered purchase order to the supplier, this tells the supplier all the details of what goods they wish to buy and on what terms. Thereafter, the supplier or organisation supplying the wished goods......

Words: 4440 - Pages: 18

Free Essay

Account

...SOLUTIONS MANUAL Frank Wood’s Business Accounting 1&2 ELEVENTH EDITION Frank Wood BSc(Econ), FCA and Alan Sangster BA, MSc, CertTESOL, CA ISBN 978-0-273-71824-6 © Pearson Education Limited 2008 Lecturers adopting the main text are permitted to download and photocopy this manual as required. Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies around the world Visit us on the World Wide Web at www.pearsoned.co.uk Eleventh edition published in 2008 © Pearson Education Limited 2008 The rights of Frank Wood and Alan Sangster to be identified as authors of this Work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. Permission is hereby given for the material in this publication to be reproduced for OHP transparencies and student handouts, without express permission of the Publishers, for educational purposes only. In all other cases, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without either the prior written permission of the Publishers or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London ECIN 8TS. ISBN 978-0-273-71824-6 10 11 9 8 7 6 10 09 08 5 Printed in Great......

Words: 62664 - Pages: 251

Premium Essay

Accounts

...owner's equity, and statement of cash flows. The accounting cycle is a set of steps that are repeated in the same order every period. The culmination of these steps is the preparation of financial statements. Some companies prepare financial statements on a quarterly basis whereas other companies prepare them annually. This means that quarterly companies complete one entire accounting cycle every three months while annual companies only complete one accounting cycle per year. Accounting Cycle Steps This cycle starts with a business event. Bookkeepers analyze the transaction and record it in the general journal with a journal entry. The debits and credits from the journal are then posted to the general ledger where an unadjusted trial balance can be prepared. After accountants and management analyze the balances on the unadjusted trial balance, they can then make end of period adjustments like depreciation expense and expense accruals. These adjusted journal entries are posted to the trial balance turning it into an adjusted trial balance. Now that all the end of the year adjustments are made and the adjusted trial balance matches the subsidiary accounts, financial statements can be prepared. After financial statements are published and released to the public, the company can close its books for the period. Closing entries are made and posted to the post closing trial balance. At the start of the next accounting period, occasionally reversing journal entries are made to......

Words: 7143 - Pages: 29

Premium Essay

Account

... c. Cash was collected on accounts receivable. d. Product unit costs were assigned to cost of goods sold when the units were sold. CPA-00017 Explanation Choice "b" is correct. Revenues and gains are realized when assets are exchanged for cash or claims to cash. SFAC 5 para. 83. Choice "a" is incorrect. Assigning depreciation in a production department is an example of allocating overhead. There is no realization associated with the assignment. 5 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Becker CPA Review, PassMaster Questions Lecture: Financial 1 Choice "c" is incorrect. The realization concept is integral to accounting for revenues and expenses and is not connected to collection of receivables. Choice "d" is incorrect. Assignment of overhead costs to products and thus to cost of goods sold is an example of matching. There is no realization associated with this assignment. CPA-00018 Type1 M/C A-D Corr Ans: A PM#16 F 1-01 11. CPA-00018 PI Nov 93 #53 Page 11 In Yew Co.'s 1992 annual report, Yew described its social awareness expenditures during the year as follows: "The Company contributed $250,000 in cash to......

Words: 34349 - Pages: 138

Premium Essay

Accounts - Advice to Bplt Ltd About the Treatment of the Following in the Final Statement of Accounts for the Year Ended on 31st March 2002

... ACCOUNTS CASE STUDIES Q1) Advice to BPLT Ltd about the treatment of the following in the final statement of accounts for the year ended on 31st March 2002. A claim lodged with the railways in March 1999 for loss of goods of Rs 2,00,000 had been passed for payment in March 2002 for Rs 1,50,000. No entry was passed in the books of company, when the claim was lodged. Q2) Y. Co Ltd used certain resources of X Co Ltd. In return X Co. Ltd receives Rs 10 lakhs and Rs 15 lakhs as interest and royalties, respectively from Y Co Ltd during the year 2001-2002 you are required to state whether and on what basis their revenue can be recognized by X Co Ltd? Q3) On December 1, 2001 Royal Co. purchased Rs 4,00,000 worth of land for a factory site. Royal razed an old building on the property and sold the material its salvaged from the demolition. Royal incurred additional costs and realised salvage proceeds during December 2001 as follows : |Demolition of old building |Rs. 50,000 | |Legal fees for purchase contract and |Rs. 10,000 | |recording ownership | | |Title guarantee insurance |Rs. 12,000 | |Proceeds from Sale of Salvaged Materials |Rs. 8,000 | In its December 31, 2001 Balance Sheet Royal Co. should report a balance in the land......

Words: 596 - Pages: 3

Premium Essay

Blue Company Final

...Rachael Melendez To: PwC Auditor Introduction BLUE Company operates under an enterprise planning system which allows an organization to automate and integrate its essential business processes. There are many weaknesses within BLUE’s expenditure process that lead to potential risks. The internal controls in this company are poor; for example, certain departments are authorized too much power, such as the purchasing clerk and the cash disbursement department. These duties need to be segregated among other departments. By pre-approving transactions, such as an approved vendor list, preventative controls can eliminate the ability to engage in fraudulent activities. Also, this company needs to engage in a system of checks and balances among each department to ensure validity, accuracy and completeness. Analysis The first step in the expenditure process may create issues. All the employees should not have access to create a purchase requisition. For example, how can an employee that works in the cash disbursement department know about the inventory levels and make a purchase requisition. BLUE Company is lacking an inventory control department; this needs to be incorporated. BLUE Company should limit the number of employees with the access to create a purchase requisition within the inventory control department. Unauthorized access exposes assets to misappropriation, damage, and theft. By incorporating access controls, BLUE Company may be able to eliminate the......

Words: 954 - Pages: 4

Premium Essay

Accounts Final Project

...COSTING SYSTEMS OF TWO COMPANIES CERTIFICATE FROM THE ORGANISATION TABLE OF CONTENTS Sr. No. | Chapter Name | Page No. | 1. | Acknowledgement | 5 | 2. | Preface | 6 | 3. | Objective and Introduction | 7 | 4. | A Brief about the two Companies | 8 | 5. | Standard Costing System | 12 | 6. | Findings | 15 | 7. | Conclusion | 17 | ACKNOWLEDGEMENT We owe much gratitude to all the people who have helped and supported us during the conduct of this project. Our sincere thanks to our Professor Prof. L.N. CHOPDE for giving us the opportunity of practically studying standard costing systems of organizations with the help of this project. He has been a perfect guide through all the lectures and has helped a lot throughout the preparation of the project. Our deep sense of gratefulness to Mr. Anil Rasal for his support and guidance. Thank and appreciation to the staff of both the banks for their support too. We would also like to thank the institution – M.E.T. College and the faculty members without whom this project would have been a distant reality. PREFACE Comparative Study of Accounting System of Gunnebo India Pvt. Ltd and Ashok Leyland Ltd.: As part of the project we have studied the standard costing systems and the general accounting related to it followed by Gunnebo India Pvt. Ltd and Ashok Leyland Ltd. As per the guidelines given for the project we have taken the two companies. Both are manufacturing companies – while Gunnebo is......

Words: 4448 - Pages: 18

Premium Essay

Final Accounts

...Evaluate the value of a set of Final Accounts to a business. Who would be interesting in a Final Account. A final account is produced at the end of each financial year however it can be done more than once a year depending on the business and usually consists of trading account, profit and loss account and a balance sheet. There are different people who are interesting in the final accounts and want to know the business is doing financially. They each have different objectives for the business and they will use the final accounts to work out if they are getting what they want from the business. Interesting users of Final accounts are the: * Owner interesting in profit. * Shareholders interesting in profit and share price. * Managers interesting in the prestige and expansion. * Employees interesting in higher wages and keeping their job. * Customers interesting in low price, quality and credits. * Banks interesting in getting their money back. * Government interesting in tax (Inland Revenue). * Suppliers interesting in getting paid on time. * Competitors interesting in wining over customers. Which person would find the information of value the most. The owners of the business would find the final accounts most valuable because this would enable them to know how well the business has performed by looking at the profit and loss account and balance sheet. Which would give them information on the profitability,...

Words: 443 - Pages: 2