Page 129 - F1 Integrated Workbook STUDENT 2018

Introduction to Single Entity Accounts including Statement of
Cashflows

Purpose and contents of Financial

Statements

IAS 1 states that the objective of financial statements is to provide information about
the financial position, performance and cash flows of an enterprise that is useful in
making economic decisions. The financial statements will also show how effectively
management have looked after the resources of the entity, i.e. it will help users
assess the stewardship of management.

A complete set of financial statements includes:

 a statement of financial position

 either:

 a statement of profit or loss and other comprehensive income, or

 a statement of profit or loss plus a statement showing other comprehensive
income

 a statement of changes in equity

 a statement of cash flows

 accounting policies note and other explanatory notes.

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