Page 173 - Microsoft Word - 00 - Prelims.docx

Chapter 15

Preparing basic financial statements

Outcome

By the end of this session you should be able to:

 prepare a statement of financial position and statement of profit or loss and
other comprehensive income from given information

 understand, identify and report equity (reserves) in a company statement of
financial position

 understand the interrelationship between the main financial statements

 identify items requiring separate disclosure on the face of the statement of profit
or loss

 explain the purpose of disclosure notes

 define and classify events after the reporting period as either adjusting or non-
adjusting events

 define revenue recognition and apply the five-step approach to revenue
recognition

and answer questions relating to these areas.

The underpinning detail for this Chapter in your Notes can be found in
Chapter 17 of your Study Text

167