Page 229 - F3 -FA Integrated Workbook STUDENT 2018-19

Preparing basic financial statements

Presentation of financial statements

4.1 Introduction

The financial statements will be prepared from either a final trial balance (after
adjustments have been made) or from the extended trial balance working paper.

IAS 1 Presentation of Financial Statements requires that the following components to
be presented within the financial statements:

 a statement of financial position

 a statement of profit or loss (and other comprehensive income if applicable)

 a statement of changes in equity

 disclosure notes to the financial statements

 a statement of cash flows.

Standard formats are used as far as possible so that financial information presented
is consistently classified and to enable that financial information to be compared
against relevant benchmarks.

223