Drafting and Interpreting Financial Statements
Preparing limited company and group accounts under international standards, and reading them like an analyst.
Subsections
Read the lessons, then take the check. The check pulls in anything you struggled with earlier in the unit.
The framework and single company statements
Apply reporting principles, prepare company statements and reconcile profit to cash.
- Reporting principles and useful information5 min
- Drafting a coherent set of company statements5 min
- IAS 7 and the indirect cash flow statement5 min
Applying key IAS and IFRS requirements
Apply asset, liability, revenue and tax standards to reporting adjustments.
- IAS 16, IAS 2 and IAS 38: asset measurement5 min
- IAS 37, IFRS 16 and IAS 12: obligations and tax5 min
- IFRS 15 and IAS 10: revenue and reporting dates5 min
Group accounts and ratio interpretation
Prepare consolidation workings and interpret profitability, liquidity and financial risk.
- Control, acquisition goodwill and non-controlling interests5 min
- Eliminations and consolidated statements5 min
- Interpreting performance, liquidity and risk5 min
Year end reporting casebook
Prepare an adjustment schedule, resolve group transactions and explain the story behind cash and ratios.
- Year end adjustments and statement links5 min
- Consolidation working papers5 min
- Cash flows and analytical commentary5 min
Mixed unit review
Fifteen questions drawn from the whole unit, weighted towards the topics you have got wrong before. Nothing is flagged for revision right now.
Year-end reporting at Calder Engineering Group
You are preparing year-end adjustments and group workings for review by the financial controller. Use the documents and the additional facts at each step. Amounts are in pounds. Enter numbers without currency symbols or separators. Treat the individual workings independently unless a step expressly links them.
Timed mock exam
Open timed mockHow this unit is assessed
Computer based assessment, seven tasks, 100 marks, computer & human marked.
| Task | Focus | Marks |
|---|---|---|
| 1. Statement of profit or loss and SOFP | Single company drafting | 28 |
| 2. Statement of cash flows | Indirect method | 14 |
| 3. Framework and standards | Conceptual Framework and IAS knowledge | 14 |
| 4. Consolidated SOFP | Goodwill and NCI | 14 |
| 5. Consolidated SPL | Intra group trading | 10 |
| 6. Ratio calculation | Key ratios | 8 |
| 7. Interpretation | Written analysis | 12 |