Preparing financial statements

Statement of financial position

Explain how the accounting equation, IFRS Accounting Standards and the business entity concept underlie the statement of financial position.

Statement of profit or loss and other comprehensive income

Calculate revenue, cost of sales, gross profit, operating profit, profit before financing and income taxes, profit before income taxes, profit (for the year) and total comprehensive income (for the year) from given information.

Disclosure notes

Explain the purpose of notes to the financial statements (disclosure notes).

Events after the reporting period

Define an event after the reporting period in accordance with IFRS Accounting Standards.

Statement of cash flows (excluding partnerships)

Differentiate between profit and cash flow.

Incomplete records

Apply techniques used in incomplete record situations: Use of accounting equation, Use of general ledger accounts to calculate missing figures, Use of cash and/or bank summaries, Use of profit percentages to calculate missing figures.

Section G Practice Questions

Test your knowledge across all Section G topics