Page 39 - Finac1 Test 1 slides

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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