How to prepare the internal financial statements of limited liability companies. | The financial statements will be:- income statements
- statement of changes in equity
- statement of financial position.
Note: these statements will be for internal use and not for publication. The income statement should include the distinction between: - profit from operations
- profit for the year before tax
- profit for the year after tax.
Statement of changes in equity could include entries for: - opening balances
- share issues including those made at a premium
- dividends paid
- profit (or loss) for the year
- closing balances.
Statement of financial position will have the following sub-headings:- current assets
- non-current assets
- equity
- current liabilities
- non-current liabilities.
Note: preference shares and general reserves will not be examined. | 