Financial Statement

Q1: The IASB Framework for the Preparation and Presentation of Financial Statements identifies key qualitative characteristics that make the information in financial statements useful to users.

Identify each of these qualitative characteristics and explain how each will affect the way user groups may benefit from their application.
Which do you regard as most important one (s)? Provide examples where relevant to support your points.

Q2: Discuss and demonstrate your understanding of traditional conventions applied in financial reporting. Provide examples where relevant to support your points using M&S Report 2017 under Week 2

Business entity, Duality, Monetary measurement, Cost, Continuity (going concern), Conservatism (prudence), Consistency, Materiality, Objectivity, Matching

Q3. Attempt the following end of chapter exercises from the main textbook (Maynard, 2nd Edition – Chapter 2). Your answer should be in your own words and based on wider independent reading: Q1 – Q8.

Q4: Select a company of your choice and find the latest annual report. Do the following:

– By reviewing the notes, identify 2-3 key accounting policies and estimates for each of them used by the company.

– Write a brief summary of what is included in director’s report and auditor’s report.

– Identify any other disclosures you think is important for the readers.

Q5: Read Conceptual Framework article available under Week 1 and write one page summary of key points from this article. It is important to provide a critical analysis and independent thinking on the topic concerned.




Sample Solution