Purpose of financial statements: IAS 1 (Revised) states that the objective of financial statement is to provide information about the financial position, performance, and cash flows of an enterprise that is useful in making economic decisions

1. FINANCIAL
OPERATIONS PAPER: F1
LESSON 9: Introduction To Published Accounts
LECTURER : ABIODUN MAMORA
Thursday, April 12, 2012
LAGOS
Mamora Abiodun +234802 415 7105
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2. LESSON 9: Introduction To Published Accounts
IAS 1 (Revised) Presentation of financial statements
All entities preparing their financial statements in
accordance with IAS should follow the requirement of
IAS 1, revised 2007.
Purpose of financial statements:
IAS 1 (Revised) states that the objective of financial
statement is to provide information about the financial
position, performance, and cash flows of an enterprise
that is useful in making economic decisions
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3. LESSON 9: Introduction To Published Accounts
Contents of financial statements
A complete set of financial statements includes:
• A statement of financial position
•Either:
-a statement of comprehensive income or
- an income statement 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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4. LESSON 9: Introduction To Published Accounts
Responsibility for financial statements
The board of directors (and/or other governing body) of an
entity is responsible for the preparation and presentation of its
financial statements.
concepts affecting financial statement
•Fair presentation
•Going concern
•Accruals basis
•Consistency
•Materiality and aggregation
•Off-setting
•Comparative information
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5. LESSON 9: Introduction To Published Accounts
The statement of financial position
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6. LESSON 9: Introduction To Published Accounts
Statement of changes in equity
This statement provides a summary of all changes in
equity arising from transactions with owners in their
capacity of owners.
Illustration 1
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7. LESSON 9: Introduction To Published Accounts
Statement of comprehensive income
Total comprehensive income is the realised profit or loss for the
period plus other comprehensive income
Other comprehensive income is income and expenses that are
not recognised in profit or loss. This include any changes in the
revaluation surplus.
Illustration 2
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8. LESSON 9: Introduction To Published Accounts
Note to the financial statement
The note to the financial statement of an entity should:
• Present information about the basis of preparation of the FS
and the specific accounting policies adopted for significant
transactions.
•Disclose information required by other IFRSs that is not
presented else where in the FS
•Provide additional information that is relevant to an
understanding of the FS
Test your understanding 3
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9. Abiodun Mamora
abiodunmamora@gmail.com
Thanks!
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