Page 68 - Ebook Financial Accounting 3

CHAPTER 4.0

PREPARATION FINANCIAL STATEMENT FOR COMPANY

MFRS 101

LEARNING OBJECTIVE:
At the end of this chapter, students should be able to:

• Discuss the various types of the Financial Statements

• Demonstrate the format of the Financial Statements
• Show the disclosure of Financial Statements

Introduction

The Companies Act 2016 requires the audited financial statements of a company to be prepared

every calendar year, at intervals of not more than 15 months. Companies are required to comply
with more regulations and rules in the presentation of financial statements compared to sole

traders and partnerships.

Based on the MFRS 101, financial statements are a structured representation of the financial

position and financial performance of an entity. A complete set of financial statement reports
required by MFRS 101 comprises the following:

1. Statement of Comprehensive Income for the period.

2. Statement of Financial Position as at the end of the period.
3. Statement of Changes in Equity for the period.

4. Statement of Cash Flow for the period.
5. Notes, comprising a summary of significant accounting policies and other relevant

explanatory information.

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