Page 9 - Microsoft Word - 00 IWB ACCA F7.docx

Introduction to published accounts

Preparation of financial statements for

companies

A complete set of financial statements comprises:

 statement of financial position – assets, liabilities and equity

 statement of profit or loss (and other comprehensive income) – income
and expenditure (and unrealised gains and losses)

 statement of changes in equity – movement in all components of equity

 statement of cash flows – cash movements during the period (see later
chapter for detail)

 accounting policies and explanatory notes – explains how financial
statements have been produced

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