Page 9 - Finac1 Test 1 slides - 3. Presentation of Financial Statements

PRESENTATION OF FINANCIAL STATEMENTS

Purpose of financial statements (IAS 1

par .09–.10)

• The financial statements are a structured representation

of the financial position of the entity and the results of

the operations undertaken by the entity.

• The objective of preparing financial statements is to

provide information about the

• financial position (assets, liabilities and equity),

• performance (income and expenses, including gains and losses),

and

• cash flows of an entity

• in order to provide useful information to the users of the

financial statements in making economic decisions.

• It also serves as proof of the results of management's

stewardship of the resources of the entity.
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