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Financial Statements: Based On Philippine Accounting Standards (PAS) #1
Financial Statements: Based On Philippine Accounting Standards (PAS) #1
Financial Statements: Based On Philippine Accounting Standards (PAS) #1
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STATEMENT OF FINANCIAL
POSITION (SFP)
This financial statement presents the company’s financial position
at a given period. It consists of the three elements making up the
financial position – assets, liability, and equity.
non-current.
PRESENTATION OF non CURRENT LIABILITIES
• Retained Earnings
consist of among other things, the accumulated earnings
of the company, prior period adjustments for errors, dividends
declared/paid, effect of changes in accounting policy and
appropriated retained earnings.
Income Statement and its Form
This statement presents the result of the firm’s operation or
performance for a given time. Elements found in the statement
consist of revenue and expenses.
Forms
Functional Approach – follows the function of expenses
Cash receipts from rental fees, service, professional fees, legal fee
s, tuition fee, etc.
Cash used to pay salaries, utilities, purchases and payables.
Cash receipt or disbursement from securities kept by the company
for dealing or trading. They are like merchandise held for sale.
Investing activities
Cash flows from purchasing or selling long-term assets
and other long-term investments. Cash flow from Investing activities may includ
e:
Cash disbursement used to buy buildings, paints, equipment, f
urniture, and other fixed assets
Cash receipts or payments from derivative transactions like fut
ure or forward contracts, swap contracts and option contracts.
Cash receipts or payments from selling or buying of equity sec
urities or shares or debt instruments like bonds of other compa
nies for short-term or long-term purposes.
Financing activities
These are the company’s cash inflows or outflows involving its owners
and creditors. Examples of cash flow from Financing Activities may include:
Cash receipts from issuance of the company’s ordinary shares, and preferred
shares.
Cash disbursements used to pay acquisition of treasury shares or redeemable
preferred shares.
Cash receipts from issuing the company’s bonds or notes.
Cash receipts from short-term or long-term loans payable, bank payables, or
mortgage payables.
Cash disbursement used to pay bank loan and other form of borrowings.
Notes to the Financial Statements
These are bits or sets of information that cannot be disclosed on
the face of the financial statement.