What is filed with the registrar of companies?
- statutory accounts
Another name for annual report and accounts
The Corporate Report
What does the corporate report contain
- SoPoL
- SoFP
- SoCF
- SoCiE
- Notes to the financial statements
- directors’ report
- auditors’ report
Main provisions of the companies acts for financial statements
two requiremements
Must:
- show and explain business transactions
- disclose with reasonable accuracy the financial position of the company
A company’s financial statements must comply with which two bodies?
- either UK accounting reporting standards or IFRS
- Companies Act
when must statutory accounts be filed for plc’s?
6 months after year end
when must statutory accounts be filed for private limited company?
9 months after year end
IAS 1 on the statements’ users
financial statements must provide information about financial position, performance and cash flows that is useful to wide range of users for decision making
IAS 1: what makes a set of financial statements complete?
- SoFP
- SoPL
- SoCE
- SoCF
- accounting policies and explanatory notes
- comparative info for preceding period
what would dividends issued be comprised of in the year end accounts?
- previous financial year’s final dividend
- current financial year’s interim dividend
what is a current asset
An asset that is going to be realised or sold within the usual operating cycle or within 12 months
What are the two things the director’s report contains?
- review of activities over last year
- likely developments in the future
Three main sections of auditors’ report
- respective responsibilities of directors and auditors (directors prepare financial statements, auditors form an opinion on them)
- basis of opinion - details of how the audit was performed and assessments made
- opinion
what does it mean for an auditor to say their opinion is ‘unqualified’
- financial statements are prepared properly and to good accuracy
- statements give a fair and true representation in line with IFRS
- directors’ statement is coherent with figures
example of accounting policy
method of depreciation
