Preparation Of Full Set Of Accounts/Financial Statements - HR ACT | HRDCorp Registered Training Provider (2024)

FAQs

Who is required to prepare financial statements? ›

Annual financial statements must be prepared by all entities except small proprietary companies. The annual financial statements consist of a balance sheet, a profit and loss statement and a cash flow statement.

Within 45 days of each quarter-end and 90 days of each year-end, these companies must file financial statements with the SEC. In total, all public companies must prepare financial statements for external reporting purposes four times each year.

13 The accountant should prepare the financial statements using the records, documents, explanations, and other information provided by manage- ment.

Year-end financial statements are usually prepared by an accountant, but smaller businesses often prepare them internally—for example, with the help of a bookkeeper.

The management of a company is responsible for preparing the financial statements.

Yes, a bookkeeper can prepare basic financial statements. These statements, such as the income statement and the balance sheet, are derived from the regular bookkeeping work they perform, like recording daily transactions and ensuring all financial data is accurate and current.

Schedule iii of the companies act, 2013 provides the manner in which every company registered under the act shall prepare its Statement of profit and loss, Balance Sheet and notes to the financial statements.

Oftentimes, the certified public accountant (CPA) who performs your general accounting and/or bookkeeping and prepares your annual tax return can also prepare your financial statements and, in addition, perform the appropriate service in order to meet your bank's requirements.

Usually these are prepared by an accountant. But with the help of computer software, you may be able to prepare your own financial statements.

Bookkeepers are the 'keepers of the purse' – the people who record transactions into journals and ensure that the numbers are available at the end of the month for an accountant to prepare formal financial statements.

What is usually required before financial statements are prepared? ›

Adjusting entries are necessary to update all account balances before financial statements can be prepared. These adjustments are not the result of physical events or transactions but are rather caused by the passage of time or small changes in account balances.

Fundamental principles underlying the preparation of financial statements, including going-concern assumption, consistency of presentation and classification, accrual basis of accounting, and aggregation and materiality. A complete set of financial statements comprises: Statement of financial position.

Management is responsible for the preparation of the financial statements, including the notes, and the auditor's report attests to the fairness of the presentation.

Directors prepare financial statements; audit committees monitor the integrity of financial information.

BIR – P3M threshold

Section 232 of the NIRC requires that all companies with operations grossing a quarterly amount of at least P 150,000 to submit an audited financial statement.