In this note what you’d want to do is have balances grouped based on their content – accounts receivable, prepayments etc. Keep an eye out for “trade” and “other” receivables. If the balance is not directly business related as in it’s not a result of your main business activity, it’s likely to be part of “other” receivables rather than “trade”. The latter is meant purely for as the name says trade related balances that arise directly from making trade with clients. Continue reading →

If for some reason it turns out there has been a misstatement in your last year Annual Report figures, it’s strongly recommended to adjust them in this year’s report. It’s obviously applicable only if the last year Annual Report wasn’t adjusted already by taking it back for restatements. Continue reading →

Generally everything that’s to be settled within the next 12 months following from the balance sheet date are classified as current and rest as non-current. That’s the general rule, however when it comes to assets and liabilities specifically there are a few special considerations.  Continue reading →

Starting with your Annual Report is actually very easy. When you think about it, there’s not much new you have to figure out or come up with. You have prepared the main financial statements anyhow after the year-end and now all you have to do is just add that extra bit of text really. And even this text is either similar to prior period or just reflecting on the numbers presented, i.e. you don’t really have to invent something new or make it a bestseller for that matter. What you have to do, is make sure it’s easy to read and understandable, consistent and sufficient.  Continue reading →

A subsequent event is something that happened after the balance sheet date but before the Annual Report was released to the public.

The reason it’s important for the Annual Report itself is the significance of the event. A subsequent event isn’t for an example you buying goods or collecting your receivables – it’s your everyday business transactions and they are to be expected to be happening.  Continue reading →

Intangible assets note is like property, plant and equipment one really. It’s presented as reflecting movements for both current and prior period and similarly also for subgroups of intangible assets. The groups themselves obviously differ and are mostly something you can come up with on your own depending on your assets (i.e. “software”, “trademarks” etc.). The way the note is build up is also having the subgroups as columns in which brought forward balances are followed by movements and ending in carried forward balances.  Continue reading →

Property, plant and equipment note is one of those few notes presented as reflecting movements for both current and prior period. Bear in mind that it’s not only the total balance the figures are presented for, but subgroups as well (i.e. “land and buildings”, “machinery and equipment”, etc.). The way the note is build up is having the subgroups as columns in which brought forward balances are followed by movements and ending in carried forward balances. Note here that the carried forward balance of the prior period is the brought forward balance of current period. They must equal.  Continue reading →