Tuesday, November 19, 2013

Components or parts of financial statements

As per BAS-1:

Complete set of financial statements has following 5 components:
  • Balance sheet; (financial position at a particular time); (list of asset & liability at a particular time)
  • Income statement; (financial performance for a particular period); (income recognized and expense incurred for a particular period)
  • Statement of changes in equity;
  • Cash flow statement; and
  • Notes to the financial statements.

From 1 January 2010, name of the components of financial statements has been revised as:
  • Balance sheet                : Statement of financial position
  • Income statement          : Statement of comprehensive income
  • Cash flow statement       : Statement of cash flow

As per Companies Act 1994:
  • Balance sheet
  • Profit & loss account/ Income & expenditure account