3: Single entity financial statements

Question 1

What are the 5 things that a complete set of financial statements comprises of?

Answer 1

▪ a statement of financial position
▪ a comprehensive income statement
▪ a statement showing changes in equity
▪ a statement of cash flows
▪ notes for accounting policies and other explanatory notes.

Question 2

What are the 5 headings of statement of changes in equity?

Answer 2

Share capital
Share premium
Revaluation reserve
Retained earnings 
Total

Question 3

What is the first section in statement of changes in equity?

Answer 3

Balance at start of year

Changes in accounting policy

Question 4

What is the second section in statement of changes in equity? (3)

Answer 4

Restated balance
Surplus on revaluation of properties
Deficit on revaluation of investments

Question 5

What is the third section in statement of changes in equity? (3)

Answer 5

Net gains and losses not recognised in the income statement
Net profit for the period
Dividends
Issue of share capital

Final balance