Accounting Expert

Financial Statement Presentation

• Scope and definitions

  The sections of FRS 102 that directly relate to the presentation of financial statements

• General points on presentation

  Present fairly the financial position, financial performance and cash flows of an entity

• Statement of financial position

  Section 4 addresses the requirement to present a statement of financial position, or balance sheet (since this its name under the Companies Act, FRS 102 cannot prohibit its use, and it is widely used in this publication for both familiarity and convenience).

• Statement of comprehensive income and income statement

  Section 5 covers the items that would, under previous UK GAAP, have been included in the profit and loss account or statement of total recognised gains and losses.

• Statement of changes in equity and statement of income and retained earnings

  Section 6 is very brief, simply outlining the required components of the statement of changes in equity, and the permissible alternative primary statement.

• Statement of cash flows

  The statement of cash flows reconciles movements in cash and cash equivalents over the reporting period. Most entities in the scope of FRS 102 will be required to prepare one, with the following exceptions from paragraphs 7.1A:

• Notes to the financial statements

  Section 8, on notes to the financial statements, is unsurprisingly brief. It does not contain any account-balance specific requirements, as these are all included in the relevant sections of the standard; instead it sets out the aim of notes and a small number of general requirements.