3.7 Limited company accounts


Additional information

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Note: these statements will be for internal use and not for publication.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.