Annual Financial Statements, IFRS – Free Essay Examples

Annual Financial Statements, IFRS

Companies usually give annual reports to the shareholders and the public to check on the progress in terms of returns on revenue and the business growth rate. The management needs to give accurate financial reports that can be useful in determining the course of action for the business. An example of annual reports includes financial sheets such as income statements and balance sheets. This paper explores various financial statements and the accuracy checks that are performed to ascertain the reports’ authenticity.

The financial statements can be found in a firm’s annual report that follows the International Financial Reporting Standards (IFRS), include the balance sheet, income statement, statement of cash flows, and statement of shareholder’s equity. The balance sheet is a document that has information about a firm’s assets and liabilities and it may comprise of short-term assets an example being a cash and accounts receivable.1 Additionally, it includes long-term assets such as plants, equipment, and property.

Liabilities refer to obligations like accounts payable, bank loans, and debts. The income statement shows revenue and expenses alongside resulting net income or loss for a given period from earning events. Shareholders’ equity includes the money that a firm may return to shareholders in cases when all the existing assets are converted to cash after payment of liabilities.2 A cash flow statement summarizes the cash and cash equivalents that entered and leave a business entity.

The checks that are made on the accuracy of the statement include an audit by neutral third parties that are responsible for ensuring that the financial statement is prepared according to IFRS. The auditor checks the review of accounts receivable process and notes any apparent mistakes in the financial statement. For any unit being checked, there must be previous data on the same entry and all ledger and journal postings must appear in the end copy of the financial sheet.

This paper explores Barclay’s annual report by inspecting its financial statements. Barclays, which is listed in top 100 companies by Financial Time Stock Exchange (FTSE), is a public limited company in United Kingdom (UK) serving banking financial services industry.3

Cash and cash equivalents are indicated in balance sheet under total assets for the company. Property, plant and equipment for Barclay’s public limited company (PLC) is indicated in the balance sheet under the total assets. The reason is that the three items can be converted to cash any case there is need to do so by the decision of the management. For revenue, it is indicated in the income statement under the breakdown since revenue contains other sub items such as income from associates and other parties and net income from continuing operations.4 Besides, Barclays PLC has Bank overdraft shown in balance sheet under short-term liabilities. It means that the overdrafts must be paid within one year and it is put under the current liabilities is the sub-section the financial statement.

Ordinary share capital is indicated in the balance sheet under total equity and Barclays PLC usually notes it as common stock. Common stock refers to the security that is used to represent ownership in a given company. Barclays PLC financial results have clear information on each section of required data by the public and shareholders.5 The bank has been among the modern banking institutions that publish their annual results in comprehensive details hence enabling all necessary parties to have information on the progress and general performance of the firm.

Bibliography

Barclay’s PLC FY 2020 Results Announcement. 2020. London: Barclays. Web.

Csapi, Vivien, and Virginia Balogh. 2020. “A Financial Performance-Based Assessment of SMEs’ Competitiveness – An Analysis of Hungarian And US Small Businesses”. Problems and Perspectives in Management 18 (3): 452-464. Web.

Footnotes

  1. Csapi, Vivien, and Virginia Balogh. 2020. “A Financial Performance-Based Assessment of SMEs’ Competitiveness – An Analysis of Hungarian And US Small Businesses”, p.457.
  2. Csapi, Vivien, and Balogh. An Analysis of Hungarian And US Small Businesses”, p.454.
  3. Barclay’s PLC FY 2020 Results Announcement. 2020. PDF. London: Barclays, p. 35.
  4. Barclay’s PLC FY 2020 Results Announcement, p. 75.
  5. Barclay’s PLC FY 2020 Results Announcement, p. 66.

Cite this paper

Reference

UniPapers. (2022, July 30). Annual Financial Statements, IFRS. Retrieved from https://unipapers.org/free-essay-examples/annual-financial-statements-ifrs/

Work Cited

"Annual Financial Statements, IFRS." UniPapers, 30 July 2022, unipapers.org/free-essay-examples/annual-financial-statements-ifrs/.

1. UniPapers. "Annual Financial Statements, IFRS." July 30, 2022. https://unipapers.org/free-essay-examples/annual-financial-statements-ifrs/.


Bibliography


UniPapers. "Annual Financial Statements, IFRS." July 30, 2022. https://unipapers.org/free-essay-examples/annual-financial-statements-ifrs/.

References

UniPapers. 2022. "Annual Financial Statements, IFRS." July 30, 2022. https://unipapers.org/free-essay-examples/annual-financial-statements-ifrs/.

Reference

UniPapers. (2022, July 30). Annual Financial Statements, IFRS. https://unipapers.org/free-essay-examples/annual-financial-statements-ifrs/

References

UniPapers. (2022) 'Annual Financial Statements, IFRS'. 30 July.