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Contents of Financial Statements

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Contents of Financial Statements
Regular scrutiny of annual reports and accounts of various organisations has really established the fact that financial statements shall contain the following information according to section 334(2) of the companies and allied matters act (CAMA) 1990 as well as statement of accounting standards (SAS) 2:profit and lossaccount;balance sheet; a statement of cash flow; value added statement; five-year financial summary; statement of significant accounting policies; notes to the accounts; group financial statement (in case of a group); chairman's report; directors's report; audit committee's report; auditors's reports CRITICAL EXAMINATION OF THE CONTENTS OF FINANCIAL STATEMENT
In this note only eight shall be discussed succinctly,viz PROFIT ANS LOSS ACCOUNT this shows the true position of the operating result of an enterprise for the year.Bacically,it shows the operatons of the company for the reporting period. BALANCE SHEET
Perhaps best described as a "position" statement,it report the position at the close o business on a given day,detailing the value of assets and liabilities at the balance sheet date and offering considerable scope for the analysis of the relationship between different classes of assets and liabilities STATEMENT OF CASH FLOWS
This statement provides information on the sources of the sources of cash flows into the company and the utilization of the cash by the company.(SAS 18).It helps in assessing the liquidity and short term viability position of a company VALUE ADDED STATEMENT
This statement shows the wealth created by organisation and its employees and the manner in which these are distributed among various interest groups likeemployess,government,owners of capital etc STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES This spells out significant accounting polocies used in preparing the financial statements.It is the totality of assumptions made in applying accounting concepts on every transaction so as to
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