Presentation of Financial Statements
Unit 2: Presentation of Financial Statements Topics covered as per syllabus 1.Users of financial statements 2.objective of financial statements, 3.Underlying assumptions, 4.Qualitative characteristics of financial statements, 5.The elements of financial statements, 6.Recognition of the elements of financial statements, 7.Measurement of the elements of financial statements, 8..Concepts of capital and capital maintenance 1.Users of financial statements The users of financial statements include present and potential investors, employees, lenders, suppliers and other trade creditors, customers, governments and their agencies and the public. (a) Investors. The providers of risk capital need information to help them determine whether they should buy, hold or sell. They are also interested in information to assess the ability of the enterprise to pay dividends. (b) Employees- Employees and their representative groups are interested in information about the stabi...