Accounting project

By: Mee-lena Charles

Table of content
Introduction and features of financial statements page 3
Fundamental assumptions to be made when preparing a
Financial Statement page 4
Qualitative characteristics of financial statement page 5
Users of financial statements page 6
Objectives of IAS page 7
Main features of IAS page 8-9
Balance sheet page 10-11
Income statement page 12-13
Limitations of conventional financial statements page 14
Accounting concepts and principles page 15
Introduction of accounting concepts and principles page 16
Types of accounting concepts page 17
Business entity and money measurement page 18
Going concern and prudence concept page 19
Materiality and consistency concept page 20
Accruals concept and matching concept page 21
Conclusion page 22

Financial statements
Introduction:
Limited companies are required by law to prepare and publish accounts annually. The form and content of the accounts are regulated by the companies Act 1985 as amended by the Companies Act 1989 and also Companies act 2006. The general content of published financial statements is governed by IAS 1. IAS 1 lists the required contents of a company’s income statement and statement of financial position. It also gives guidance on items should be presented in the Financial Statements.
IAS 1 states that a complete set of Financial Statements must include:
1) Income Statement
2) Statement of Changes in Equity
3) Statement of Financial Position
4) Statements of Cash Flows
5) Notes to the Financial Statements

The Income Statement is the most significant indicator of a company’s financial statements. It is therefore, important that directors produce accounts which show a true and fair view of the financial affairs of the company and also conform to the relevant accountant standards

IAS 1 identifies four