2. 1) STATEMENT OF COMPREHENSIVE
INCOME
2) STATEMENT OF CHANGES IN EQUITY
3) STATEMENT OF FINANCIAL POSITION
3. 1) STATEMENT OF COMPREHENSIVE
INCOME
A Statement of Comprehensive income is done to report the
company‘s revenues and expenses over a period of time
- What is an expense ? Decrease in resources resulting from the
sales of goods or services
- What is a revenue ? Increase in resource resulting from the sales
of goods or services
4. EXAMPLE
A company makes the following transactions:
- Merchandise sales and services : $ 36 728
- Selling an administrative : $ 8418
- Credit revenues: $ 4343
- Cost of sales: $ 27 212
5. 2) STATEMENT OF CHANGES IN EQUITY
A statement of changes in equity is made to report all the
changes in a company’s retained earnings that can occur, and
other equity accounts as well
Beginning Balance
+/- Net profit (or loss)
Dividends
= Ending Balance
6. EXAMPLE
Quartz corporation information on
the 31th December 2009:
Beginning Balance: $ 400 000
Dividends: $ 35 000
Profit: $ 115 000
( The profit comes directly from the
Statement of Comprehensive
Income)
7. 3) STATEMENT OF FINANCIAL
POSITION
A statement of Financial Position will have has an aim to reports a
company’s assets, liabilities and equitiy
- What is an asset ? It is a ressource that we can measure and that will
provide information about future benefit (ex: accounts receivable,
cash, land etc..)
- What is a liability? It is an obligation of any business that will in a
certain way sacrifice resources in the future. It’s all the businness owe
to another entity. (ex: accounts payable, notes payable etc..)
- What is the equity? It is calculated with the difference between the
assets and liabilities, and that amount will represent the share of assets
that the business own (ex: retained earnings, shares etc..)
Statement of Financial
Position
Equity
Liability
Assets
8. EXAMPLE
Quartz Corporation information on
the 31th December 2009
Cash: $ 192 000
Account receivable: $128 000
Retained Earnings: $480 000
Equipment: $50 000
Account payable: $166 000
Other assets: $ 10 000
