F1 Financial Statements of Limited Companies

  • photo of grey laptop on wooden table
  • depth of field photography of file arrangement
  • gray steel file cabinet

This course looks at how financial statements are prepared for companies and groups of companies using International Financial Reporting Standards and how they can then be interpreted to help users make decisions. The course is suitable for anyone studying the AAT Level 4 Financial Statements of Limited Companies unit.

Topics covered

1 Companies
  • Characteristics and types of companies that exist under UK law
  • Reporting requirements of companies
  • Company shares
  • Debentures
2 The Conceptual Framework for Financial Reporting
  • The purpose of the IASB’s Conceptual Framework for Financial Reporting
  • The theoretical basis for preparing accounts
3 Financial Statements for Limited Companies
  • IAS 1 Presentation of Financial Statements
  • Components of a set of financial statements
  • The preparation of a Statement of Financial Position
  • The preparation of a Statement of Profit or Loss and Other Comprehensive Income
  • The preparation of a Statement of Changes in Equity
4 The Statement of Cash Flows
  • IAS 7 Statement of Cash Flows
  • The preparation of a Statement of Cash Flows
  • The indirect and direct methods
5 International Financial Reporting Standards
  • The nature of International Financial Reporting Standards
  • The main features of the following standards: IAS 2, IAS 10, IAS 16, IAS 36, IAS 38, IAS 37, IFRS 15 and IFRS16,
6 Group Accounts
  • IFRS 3 Business Combinations
  • IFRS 10 Consolidated Financial Statements
  • Definitions of groups, parent companies and subsidiary companies
  • Reporting reporting requirements of parent companies
  • The calculation of goodwill
  • The preparation of the consolidated statement of profit or loss and other comprehensive income
  • The preparation of the consolidated statement of financial position
7 Financial Ratios
  • The calculation and use of financial ratios
  • The limitations of financial ratios
  • Commenting on financial ratios
8 Professional Ethics
  • The fundamental ethical principles
  • Threats to the fundamental ethical principles
  • Dealing with ethical threats through the use of safeguards