Chapter 2 - Steps in Preparing FS

Question 1

TRANSFER TO FS

Answer 1

Statement of Profit or Loss
*Classification of Costs
 Revenue
 Other costs
 Taxation

*Classification of Costs
 Expenses

Statement of Financial Position
 Assets
 Liabilities

Statement of Changes in Equity
 Opening balance of Equity
 Interim dividend

Notes to the Property, plant and equipment
 Opening balance of PPE
 Opening balance of Accumulated depreciation

Question 2

BASICS BEFORE TRANSFER

Answer 2

Classify items from TB into:
Assets
Expenses
Revenue
Equity
Liability

Debit (RM)
Asset, Expenses

Credit (RM)
Revenue, Equity, Liability

Question 3

CHANGES TO FS

Answer 3

Transfer all the cost from Classification of Cost to the SOPL

Statement of Profit or Loss:
> Transfer Profit after Tax to the SOCIE

> Only Surplus on Revaluation will be recorded in the Other Comprehensive Income

> Transfer Surplus on Revaluation to the SOCIE

> Earnings per Share at the bottom of SOPL

Statement of Changes in Equity:
> Transfer the total share capital and reserves to the SOFP

Notes to the PPE:
> Transfer the total carrying value to the SOFP

Statement of Financial Position:
> Total up all items in SOFP