1. M ODULE 2 F INANCIAL S TATEMENTS CA. S RIPRIYA K UMAR Practical/ Article Training

2. L EARNING O BJECTIVES What are Financial Statements? What are the components of the term Financial Statements Attributes that must exist Building Blocks of Financial Statements 2

3. W HAT A RE F INANCIAL S TATEMENTS ? An Intro.

4. F INANCIAL S TATEMENTS Financial Statements are the formal record of transactions undertaken by the Company and generally comprise of: - Balance Sheet ( as at a particular date ) - Profit and Loss account or Income and expenditure account ( for a period ended ) - Cash flow statements - Notes on accounts and Accounting policies (Narrative disclosures) 4

5. C OMPONENTS OF F INANCIAL S TATEMENTS Balance Sheet Profit and Loss or Income and Expenditure Cash Flow Statements Notes and Disclosures Formal Record of Transactions undertaken by an entity during a specified period

6. A TTRIBUTES OF F INANCIAL S TATEMENTS Attributes Understandability RelianceRelevanceComparabilityDisclosure 6

7. B UILD U P OF F INANCIAL S TATEMENTS A Single Transaction Supporting is called a Voucher A Voucher is accounted in a particular Account Head – Eg. Printing and Stationery All Such Ledger accounts and groups are compiled in a Trial Balance The Balance Sheet, Profit and Loss Account and Cash flow statements are prepared from the Trial Balance Voucher Account Ledger Trial Balance Financial Statements

8. W HAT N EXT ? W HAT DO I D O ? I Know Assertions!