1. Slide 12.1 Frank Wood and Alan Sangster, Business Accounting, Volume 2, 11 th Edition, © Pearson Education Limited 2008 Financial statement formats The Companies Act 2006 defines a small company as one that lies within at least two of the following three criteria: Turnover not more than£5.6 million Balance sheet total not more than£2.8 million Employees not more than50

2. Slide 12.2 Frank Wood and Alan Sangster, Business Accounting, Volume 2, 11 th Edition, © Pearson Education Limited 2008 Financial statement formats (Continued) The Companies Act 2006 defines a medium- sized company as one that lies within at least two of the following three criteria: Turnover not more than£22.8 million Balance sheet total not more than£11.4 million Employees not more than250

3. Slide 12.3 Frank Wood and Alan Sangster, Business Accounting, Volume 2, 11 th Edition, © Pearson Education Limited 2008 Items to be presented on the face of the income statement for publication The following is the minimum information that must be shown on the face of the Income Statement: 1.Revenue. 2.Finance costs. 3.Share of the profits or losses of associates and joint ventures accounted for using the equity method. 4.Taxation expenses. 5.Post-tax profit or of discontinued operations plus the post-tax gain or loss recognised on the measurements to fair value less cost to sell of the assets or disposal groups constituting the discontinued operations. 6.Profit or loss for the period.

4. Slide 12.4 Frank Wood and Alan Sangster, Business Accounting, Volume 2, 11 th Edition, © Pearson Education Limited 2008 Allocation of expenses Most expenses will be classed as either: (a)Cost of sales; (b)Distribution costs; or (c)Administrative expenses.