3.16 Accounting for limited companies


Additional information

The use of accounting techniques and principles when drafting financial statements for limited companies (based on IAS1).

Financial statements include those listed in Limited company accounts and:
  • statements of cash flow (in accordance with IAS7 using the indirect method)
  • schedules of non-current assets.

Note: the financial statements of a group of companies will not be examined.

Statement of comprehensive income will not be examined.

Accounting for the revaluation of non-current assets.


The difference between the issue of shares, a rights issue and a bonus issue, and recording the effect of such transactions in financial statements.


The requirement to publish accounts and how these are used by a variety of stakeholders.

The requirement to publish accounts could include:

  • the reasons for publishing accounts
  • benefits and limitations of published accounts
  • the main elements in published accounts and the purpose of each as required by:
    • IAS1
    • Companies Acts.
  • the limitations of published accounts.

The purpose and importance of the international accounting standards framework.

Note: specific standards will not be examined (other than in reference to the IAS1 and IAS7 mentioned above).