Importance of Professional Ethics in Accounting and Fundamental Principles

Financial Accounting

Contents
INTRODUCTION...........................................................................................................................................3
QUESTION 1.................................................................................................................................................3
Prepared the consolidated statement of financial position for the Pee group at 31 December 2020.
Pee plc has a policy of valuing Non-Controlling interest at their share of net assets at acquisition........3
Explain what is meant by relevance, reliability and comparability and how they make financial
information useful...................................................................................................................................5
QUESTION 2.................................................................................................................................................6
1) Financial performance of business......................................................................................................6
2) Type of financial and non financial information..................................................................................7
Performance of the business...................................................................................................................7
b) Briefly discuss why professional ethics are important in accounting and discuss five fundamental
principles of professional ethics for accountants....................................................................................9
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................12

INTRODUCTION
The procedure of documenting, categorizing, summarizing, and evaluating accounting
transactions is known as financial accounting. The financial statements are prepared using this
information. In the corporate sector, there are a variety of business enterprises to choose from,
including sole proprietors, partners, and private and public limited corporations. As name
indicates, shareholders go global by buying additional on the stock market. To put it another
way, such businesses diminish their property by distributing it over several investors (Okolocha
and Odimmega, 2019). It is a specialized section of bookkeeping that captures and publishes
facts about something like a company’s financial position and operations, primarily for external
parties to utilize. In this report consist of two questions and in first question consolidation of
financial statement and in second question define about the non financial information in detailed
manner.
QUESTION 1
Prepared the consolidated statement of financial position for the Pee group at 31 December 2020.
Pee plc has a policy of valuing Non-Controlling interest at their share of net assets at
acquisition
Consolidated financial statement: The financial statements of a collection of businesses
that are shown as if they were a specific business unit are known as consolidated financial
statements. Those other documents are important for examining the financial situation and
outcomes of a group of firms that are all owned by the same person. Meanwhile, examining the
financial outcomes of existing enterprises inside this organization does not provide an indicator
of the organization's profitability.
Particulars Current year Previous year
Non-current Assets
Property, plant & equipment 160,000 50,000
Cost of investment 60,000 00000
2,20,000 50,000