ExpertDisclosure Notes
Learning outcomes
- Explain the purpose of notes to the financial statements
- Draft disclosure notes for non-current assets, provisions, events after the reporting period, and inventories
Objective A & B: Disclosure Notes
Notes to the financial statements provide additional information that is not presented on the face of the main statements. They are an integral part of the financial statements and include:
- Accounting policies: The significant accounting policies used (e.g., depreciation methods, inventory valuation)
- Disaggregation: Breakdown of summarised figures (e.g., analysis of non-current assets by category)
- Additional disclosures: Information required by specific IFRS standards
Non-Current Assets Note
A typical non-current assets note shows:
| Land | Buildings | Equipment | Total | |
|---|---|---|---|---|
| Cost | ||||
| Opening balance | X | X | X | X |
| Additions | X | X | X | X |
| Disposals | (X) | (X) | (X) | (X) |
| Closing balance | X | X | X | X |
| Accumulated depreciation | ||||
| Opening balance | X | X | X | X |
| Charge for year | X | X | X | X |
| Disposals | (X) | (X) | (X) | (X) |
| Closing balance | X | X | X | X |
| Carrying amount | X | X | X | X |
Provisions Note
Shows opening balance, amounts charged, amounts used, and closing balance.
Inventories Note
Shows the breakdown of inventories by category (raw materials, work in progress, finished goods).
Notes to the financial statements are:
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ACCA FA — Financial Accounting Practice Exam 1
A complete mock exam replication for ACCA Financial Accounting (FA). This exam mirrors live computer-based testing parameters, featuring 35 Objective Test Questions (Section A) and 2 Multi-Task Questions broken down into 30 independent sub-questions (Section B). Covers double-entry accounting, ledger adjustments, group consolidations, and financial statement production.