MFRD
Task One
Comparison between the different organisations and their financial statements
The International Accounting Standards Board is the independent, accounting standard-setting body of the IFRS Foundation.[1]
It is responsible for developing and promoting the use and application of these standards.
Trading Profit and Loss Account:
A company keeps different types of financial records in order to monitor their performance and ensure that their taxes are paid. These will include cash flow statements, profit and loss accounts and a balance sheet.
A trading, profit and loss account shows the firm’s financial performance over a given time period, usually one year.
The trading account of the Trading Profit and Loss Account will show the businesses gross profit before taking into account other expenses such as overheads.
The profit and loss account shows them their final net profit of that year. http://www.bbc.co.uk/schools/gcsebitesize/business/finance/accountsrev1.shtml
Balance Sheet:
This is a financial statement used by a given firm to summarize their company assets, liabilities and shareholders’ equity at a specific time. The three balance sheet segments will give investors of the company an idea of just what exactly the company owes and owns and well as outlining the amount total invested by all shareholders.
A common rule for Balance Sheets is as follows: Assets = Liabilities + Shareholders' Equity http://www.investopedia.com/terms/b/balancesheet.asp
Cash Flow Statement:
This can also be known as a Statement of Cash Flows. It is a financial statement which shows a business how any change in their Balance Sheet Account and their income will affect the cash flow in the firm. It breaks down the analysis of such change down to the operating, investing, and financing activities. This statement is primarily concerned with the cash flow in and out of the business. It captures both the current operating results for the business as well as the
Comparison between the different organisations and their financial statements
The International Accounting Standards Board is the independent, accounting standard-setting body of the IFRS Foundation.[1]
It is responsible for developing and promoting the use and application of these standards.
Trading Profit and Loss Account:
A company keeps different types of financial records in order to monitor their performance and ensure that their taxes are paid. These will include cash flow statements, profit and loss accounts and a balance sheet.
A trading, profit and loss account shows the firm’s financial performance over a given time period, usually one year.
The trading account of the Trading Profit and Loss Account will show the businesses gross profit before taking into account other expenses such as overheads.
The profit and loss account shows them their final net profit of that year. http://www.bbc.co.uk/schools/gcsebitesize/business/finance/accountsrev1.shtml
Balance Sheet:
This is a financial statement used by a given firm to summarize their company assets, liabilities and shareholders’ equity at a specific time. The three balance sheet segments will give investors of the company an idea of just what exactly the company owes and owns and well as outlining the amount total invested by all shareholders.
A common rule for Balance Sheets is as follows: Assets = Liabilities + Shareholders' Equity http://www.investopedia.com/terms/b/balancesheet.asp
Cash Flow Statement:
This can also be known as a Statement of Cash Flows. It is a financial statement which shows a business how any change in their Balance Sheet Account and their income will affect the cash flow in the firm. It breaks down the analysis of such change down to the operating, investing, and financing activities. This statement is primarily concerned with the cash flow in and out of the business. It captures both the current operating results for the business as well as the