1 INTERPRETATION
OF FINANCIAL STATEMENTS
Aim
The overall aim of this paper is for candidates to
understand and interpret the financial statements
produced by organisations for external users.
Candidates should develop an understanding of the
regulatory framework in which these statements are
prepared and of the principles and methods which
underlie their preparation.
Objectives
On completion of this paper candidates should be
able to:
-
describe the role
and function of external financial reports and
identify their users and the regulatory
framework in which they are prepared
-
explain the
accounting concepts and conventions present in
generally accepted accounting practice
-
explain, supported
by simple computations, the presentation,
measurement and meaning of the primary financial
statements and their contents
-
describe the
informational role of the constituent parts of a
corporate annual report usually presented in
addition to the primary financial statements
-
compute, interpret
and appraise financial performance, financial
position and adaptability as revealed by
financial statement analysis, particularly by
the use of financial and accounting ratios.
For detailed syllabus
on paper 1 click
here and for study guide
click here. |
