Accounting (AS)·Company accounts · NSSCAS 2.3.2
Company financial statements: income statement, SOCE & SOFP
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A limited company must report to its shareholders with three linked statements: the income statement, the statement of changes in equity, and the statement of financial position. In this lesson we build all three for a Windhoek company, learn how to calculate interim and final dividends, and see why audit fees and debenture interest sit among the expenses. Paper 1 almost always asks you to prepare at least one of these statements, so we follow the exam layouts line by line.
What you'll learn in this lesson
By the end you should be able to (NSSCAS Accounting (AS) 2.3.2):
- explain the meaning of the terms interim dividend and final dividend
- calculate interim and final dividends
- explain the term audit fees
- make the other adjustments as detailed in Theme 2, Unit 2.1
- prepare an income statement of a limited liability company
- prepare a statement of changes in equity
- prepare a statement of financial position
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