WILEY IFRS EDITION Prepared by Coby Harmon University of California, Santa Barbara 4-1 Westmont College Agenda 4-2 Financial statements – from theory to real practice Link to Vietnamese FS formats Extended Worksheet – using illustration given by instructor Excerpt from chapter Financial statements and its relationship 4-3 The Basic Accounting Equation Companies prepare five financial statements : Income Statement (Statement of Profit or loss) Retained Earnings Statement (Statement of changes in Equity) Statement of Cash Flows 4-4 Statement of Financial Position Learning Objective Understand the five financial statements and how they are prepared Comprehensive Income Statement LO Illustration 1-10 Financial statements and their interrelationships 4-5 Illustration 1-11 Financial statements and their interrelationships LO 4-6 Illustration 1-11 LO Balance sheet and income statement are needed to prepare statement of cash flows Illustration 1-11 Financial statements and their interrelationships 4-7 LO Financial statements 4-8 Airbus FSs as typical international sample Vinamilk FS as typical VNese sample Pick figures from extended worksheet to prepare FS and post-closing TB 4-9 IS Retained earnings statement SFP Post – closing TB