Week 5

Question 1

A complete set of financial statements comprises of….

Answer 1

a) Statement of financial position - SFP
b) Statement of changes in equity - SCIE
c) Statement of profit or loss and other comprehensive income– SCI
d) Statement of cash flows - SCF

Question 2

What does the SCIE show?

Answer 2

This shows how equity totals have changed from one statement of
financial position to the next.

Question 3

What does the SCIE include?

Answer 3

It includes the effect of share issues, dividends paid and
revaluations of NCAs.

Question 4

What does the SCIE help the user of financial statements understand?

Answer 4

Opening equity doesn’t always equal closing equity.