Interpretation and Application of UK GAAP: For Accounting Periods Commencing On or After 1 January 2015

Chapter 3The Primary Financial Statements and Disclosure Notes

1. Introduction
2. Presentation of Financial Statements Fair presentation
3. Compliance with FRS 102
4. Frequency and consistency
5. Complete set
6. Statement of Financial Position
7. Statement of Comprehensive Income and the Income Statement
8. Statement of Changes in Equity and Statement of Income and Retained Earnings
9. Statement of Cash Flows
10. Notes to the Financial Statements
11. Going Concern

Introduction

The financial statements and associated disclosure notes are one of the most important pieces of documentation that a company produces. The financial statements can influence lending decisions, tax liabilities (or refunds), creditworthiness of the company, staff numbers and the way in which stakeholders generally perceive the company. They can also influence valuations for buying or selling a company. The financial statements play a vital part in the running of a company and it is of paramount importance, therefore, that the financial statements are prepared in accordance with the relevant financial reporting framework, whether this is mainstream UK GAAP, the small companies regime, EU-endorsed IFRS or the micro-entities regime.

FRS 102 at Section 3 Financial Statement Presentation specifically outlines how an entity will achieve fair presentation of financial statements. It goes on to explain how an entity reporting under FRS 102 achieves compliance with the Standard and then explains what constitutes a ‘complete’ set of financial statements. ...