Home | | Accountancy 12th Std | Features of financial statements

Chapter: 12th Accountancy : Financial Statement Analysis

Accountancy | Study Material, Lecturing Notes, Assignment, Reference, Wiki description explanation, brief detail |

Features of financial statements

Following are the features of financial statements:

Features of financial statements

Following are the features of financial statements:

i.            Financial statements are generally prepared at the end of an accounting period based on transactions recorded in the books of accounts.

ii.            These statements are prepared for the organisation as a whole.

iii.            Information is presented in a meaningful way by grouping items of similar nature such as fixed assets and current assets.

iv.            Financial statements are prepared based on historical cost.

v.            Financial statements are prepared based on accounting principles and Accounting Standards, which make financial statements comparable and realistic.

vi.            Financial statements involve personal judgement in certain cases. For example, selection of method of depreciation, percentage of reserve, etc.

 

Tags : Accountancy Accountancy
Study Material, Lecturing Notes, Assignment, Reference, Wiki description explanation, brief detail


Copyright © 2018-2020 BrainKart.com; All Rights Reserved. Developed by Therithal info, Chennai.