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What are the contents of a set of public Ltd company accounts?
Chairman’s statement
Independent auditors reports
Income statement (profit and loss)
Statement of financial position (balance sheet)
Corporate governance report
Remuneration report
Other statutory information
What is a balance sheet?
Is a statement of the businesses financial position showing its assets and liabilities at a given date, usually at the end of the financial year
Assets can include cash, property, debtors and other investments
Liabilities can include borrowings, overdrafts, loans and creditors
What is a profit and loss account?
A summary of the business income and expenditure transactions, prepared usually on an annual basis
What are management accounts?
Prepared for internal use and are not audited
Who prepares an audited account?
An accountant
What is IFRS 16?
New lease accounting standards which all companies had to comply from 2019 when using the International Financial Reporting Standards.
The full costs of leases will have to be accounted for on the balance sheet.
An occupiers obligation to pay the rent will have to be recognised as a liability, though service charge payments would be accounted for separately.
Exemptions for leases less than 12 months
What is a cash flow statement?
Shows all the actual receipts and expenditure to include VAT.
Not included in the annual accounts but is prepared for management purposes
What are the guidelines that set regulation for how companies should set up accounts?
UK GAAP
IFRS
What is another term for a profit and loss account?
Income Statement
What is another term for a Balance Sheet?
Statement of financial position?
Author
andrewlister4
ID
351511
Card Set
Accounting Principles and Procedures
Description
Accounts
Updated
2020-05-07T13:04:49Z
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