MODULE 2FINANCIAL STATEMENTS

CA. SRIPRIYA KUMAR

Practical/ Article Training

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LEARNING OBJECTIVES

What are Financial

Statements?

What are the components of

the term Financial

Statements

Attributes that must exist

Building Blocks of Financial

Statements

WHAT ARE FINANCIAL STATEMENTS ?An Intro.

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FINANCIAL STATEMENTS

Financial Statements are the formal record of transactions undertaken by the Company and generally comprise of: - Balance Sheet ( as at a particular date )- Profit and Loss account or Income and expenditure account ( for a period ended )- Cash flow statements- Notes on accounts and Accounting policies (Narrative disclosures)

COMPONENTS OF FINANCIAL STATEMENTS

Balance

Sheet

Profit and

Loss or

Income and

Expenditur

e

Cash Flow Statement

s

Notes and Disclosures

Formal Record of Transactions

undertaken by an entity during a specified period

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ATTRIBUTES OF FINANCIAL STATEMENTS

Attributes

Understandability

Reliance

RelevanceComparability

Disclosure

BUILD UP OF FINANCIAL STATEMENTS

A Single Transaction Supporting is called a Voucher

A Voucher is accounted in a particular Account Head – Eg. Printing and Stationery

All Such Ledger accounts and groups are compiled in a Trial Balance

The Balance Sheet, Profit and Loss Account and Cash flow statements are prepared from the Trial Balance

VoucherAccount Ledger

Trial Balance

Financial Statements

WHAT NEXT? WHAT DO I DO?I Know Assertions!