Accounting Business Reporting for Decision Making

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

5.1 identify the financial reporting obligations of an entity

balance sheet 5.8 Format and presentation of the

5.3 outline the effect of accounting policy choices, estimates and judgements on financial statements

5.4 apply the asset definition criteria

5.5 apply the liability definition criteria

5.6 discuss the definition and nature of equity

5.7 apply the recognition criteria to assets, liabilities and equity

the balance sheet 5.9 Presentation and disclosure of elements on

5.9 describe the presentation and disclosure requirements for elements on the balance sheet

5.10 discuss the measurement of various assets and liabilities on the balance sheet

5.11 discuss the limitations of the balance sheet.

CHAPTER 5

Balance sheet

Contents

Chapter 5 preview

5.1 Financial reporting obligations

5.2 Nature and purpose of the balance sheet

5.3 Accounting policy choices, estimates and judgements

5.4 The definition of assets

5.5 The definition of liabilities

5.6 The definition and nature of equity

5.7 Assets, liabilities and equity

5.8 Format and presentation of the balance sheet

5.9 Presentation and disclosure of elements

on the balance sheet

5.10 Measurement of various assets and liabilities

5.11 Potential limitations of the balance sheet