The content of general purpose financial statements in line with IFRS is as follows
1. Statement of Accounting Policies
This first aspect of the financial statements gives information about the accounting policies adopted by management of the reporting entity in the preparation and presentation of their financial statements.
Such policies may include management decisions regarding:
a) The method(s) of depreciation adopted for non-current assets
b) The method of inventory valuation
c) Method of foreign currency translation
d) And many more
2. Statement of Financial Position
This aspect of the financial statements gives the balance sheet of the reporting entity. The balance sheet is a statement of assets, liabilities and equities of the reporting entity; hence, it is called the statement of financial position.
3. Statement of Profit or Loss and Other Comprehensive Income
This part of the financial statements gives information about the revenue, income and expenditure of the reporting entity as well as the profit or loss for the reporting period.
4. Statement of Cash Flow
The cash flow statement, as part of the financial statements, gives information about the changes in the position of cash and cash equivalent
5. Notes to the Financial Statement
This last part of the financial statements gives supporting explanation to the figures and other information in the financial statements
1. Statement of Accounting Policies
This first aspect of the financial statements gives information about the accounting policies adopted by management of the reporting entity in the preparation and presentation of their financial statements.
Such policies may include management decisions regarding:
a) The method(s) of depreciation adopted for non-current assets
b) The method of inventory valuation
c) Method of foreign currency translation
d) And many more
2. Statement of Financial Position
This aspect of the financial statements gives the balance sheet of the reporting entity. The balance sheet is a statement of assets, liabilities and equities of the reporting entity; hence, it is called the statement of financial position.
3. Statement of Profit or Loss and Other Comprehensive Income
This part of the financial statements gives information about the revenue, income and expenditure of the reporting entity as well as the profit or loss for the reporting period.
4. Statement of Cash Flow
The cash flow statement, as part of the financial statements, gives information about the changes in the position of cash and cash equivalent
5. Notes to the Financial Statement
This last part of the financial statements gives supporting explanation to the figures and other information in the financial statements
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