International Financial Report.International Financial Report Assignment Sample

International Financial
Report

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Q1 International Financial Reporting standards and Income statement of Able Plc for the year
2017.............................................................................................................................................1
Q2 Critical revelation over the regulator discussion and relevant international accounting
standards......................................................................................................................................3
Identifying the intangible assets looking at the specific area of capitalising R&D costs...........5
Q3 Explanation of the statement Inventories should be valued at “ Lower of cost and net
realisable value” .........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The preparation of financial statements, reports and data set which brings the informative
details relevant with firm's growth, liquidity and ability to meet the debts. However, to prepare
the suitable informative data base there will be requirement of implicating the authenticated
framework to perform these activities. Similarly, in the present report there will be preparation of
income statements which will present the revenue and expenses of Able Plc in the proposed
period. Moreover, there will be determination of the facts and usefulness of the financial
statements in relation with a regulatory framework of international accounting standards. The
importance of such techniques in funneling the accounting professionals to prepare the financials
as per the requirements.
Q1 International Financial Reporting standards and Income statement of Able Plc for the year
2017
Generally accepted accounting principles is been represented by International financial
reporting standards and these are used by the organisations for the preparation of financial
statements which has been published annually which is useful to stakeholders such as debtors,
clients, shareholders, government and employees for the understanding of financial position and
stability of the organizations. IFRS has been developed by International Accounting Standards
Board, set of accounting rules adopted by more than 100 countries. The whole members of
European Union should mandatory use IFRS. The increase of globalisation of financial markets
and companies has increased the use of single set of financial reporting standards across all
countries and it has made the comparison of financial statements easy across the borders. Due to
this the cost of preparing financial statements has been reduced which has been prepared by
group of companies which conducts business in the world. Generally these standards are
developed by not for profit organisations and independent organizations (Cascino and Gassen,
2015).
The main objective of IFRS standard is to disclose the financial statement's preparation or
in the same guidance has been provided for the procedure. The companies who have subsidiaries
in many other countries have a vital and important role of IFRS standards. Statement of
comprehensive income represents the financial performance of company. Sub parts of profit and
loss statements such as revenue and expenses, enhancement of assets and inflows helps in raising
economic benefit and if in case liabilities are decreased then there is increase in equity. Equity
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contributions like partners, owners and shareholders are not considered as revenue. And if there
is outflow then there is decrease in economic benefit and because of increase in liabilities there is
decrement in equity. Equity participants does not consist of distribution. There are major
circumstances which are reflection of comprehensive income such as, remeasurement of assets
and liabilities, fair value of financial asset might decrease or increase and can be modified as
availability for sale and even revaluation of some assets such as plant, property and intangible
asset may rise or fall.
Offsetting has been forbidden by IFRS standards. If some specific condition is mentioned
then offsetting should be used. There is a basic need for fair representation for effect of all the
conditions which are set according to IFRS framework and criteria should be recognised for
income, assets, liabilities and expenses (Kieso, Weygandt and Warfield, 2010). Narrative and
descriptive information is given by comparative information related to current year's financial
statement and the alternative to know the financial position is the balance sheet statement of
International accounting standard 1 and the items are been classified for financial statements.
The income statement of Able plc. For the year ending 31 December 2017 is as follows:
Income statement of the year ending 31 December 2017
Particulars Details Amount (in £)
Net sales 205000
Return Inwards -10000
Net Revenue 195000
Cost of sales
Opening inventory 20000
Purchases 130000
Return outwards -1000
Adjusted purchase 129000
Goods available for sale 150000
Closing inventory -26000
Cost of sales 124000
Gross Margin 397000
Operating Expenses
Carriage inwards 1000
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