Purpose of Financial Statements

If you consider more comfortable for you to take notes, you may download your notebook here!

 

Objective and scope

IAS 1 aim to enhance the quality of financial statements by:

• Setting minimum requirements for the presentation of primary statements;
• Setting minimum requirements for notes to FS;
• Reporting full compliance with all applicable standards and interpretations;
• Providing practical guidance on issues such as going concern, consistency, materiality and comparative information.

According to IAS 1 the objective of FS is to provide information about financial position, financial performance and cash flow of an entity that is useful to a wide range of users in making economic decisions. The objective is met by providing information on:

• Assets
• Liabilities
• Equity
• Income
• Expenses
• Contribution by and distribution to owners
• Cash flows

 

You know it!

This lesson is not to be considered complete until you successfully solve the questions below 🙂

Use what you learned in this lesson and what you know from before and try your best!

You need to be registered and logged in to take this quiz. Log in or Register