It is important to consider how financial statements will appear on adoption of FRS 102, as users such as credit agencies, banks and other businesses that grant you credit are likely to see changes.
One of the more basic changes is that primary statements could consist of:
- income statement
- statement of comprehensive income
- statement of changes in equity
- statement of financial position
- statement of cashflows
OR
- statement of comprehensive income (which contains a subtotal showing items of other comprehensive income)
- statement of changes in equity
- statement of financial position
- statement of cashflows
OR
- statement of income and retained earnings (3.18 of the standard states - 'If the only changes to equity during the periods for which financial statements are presented arise from profit or loss, payment of dividends, corrections of prior period errors, and changes in accounting policy, the entity may present a single statement of income and retained earnings in place of the statement of comprehensive income and statement of changes in equity.')
- statement of financial position
- statement of cashflows
To obtain model accounts, please email our technical advisory team on advisory@accaglobal.com and quote your membership number.
