4

Financial Statements of Companies

CHAPTER OBJECTIVES

This chapter will help the readers to:

  • Get an overview of financial statements of companies.
  • Develop understanding of Ind AS 1 relating to presentation of information in financial statements.
  • Appreciate objectives and interrelationship between various financial statements.
4.1 INTRODUCTION

The accounting cycle, leading to the preparation of financial statements as discussed in Chapter 3, is followed by all accounting entities. However, companies are subject to much higher requirements of disclosure. Obviously, they use vast societal resources, and therefore, many stakeholders are interested in their financial performance and health. Disclosures in financial statements of companies ...

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