Abstract
It was established in Chapter 1 that financial statements should be designed to meet the needs of the users of the statements. It follows that their preparation and presentation will be influenced by the context in which they are prepared — the type of organisation will be a significant factor, for example. The accounts of a small business operating as a sole trader may be prepared for use by only the owner of the business, whereas the accounts of a Plc with a stock exchange quotation will be made available to a wide variety of users (as discussed in Sect. 1.6).
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Note and Reference
We have omitted Step 7 which would be the preparation of a new trial balance from the ledger accounts which include the effect of the end of period adjustments. We could alternatively have included two extra columns in the extended trial balance in Figure 11.2 to show the ‘adjusted trial balance’.
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© 1991 Arthur Hindmarch and Mary Simpson
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Hindmarch, A., Simpson, M. (1991). Preparation and Presentation of Financial Statements. In: Financial Accounting: An Introduction. Palgrave, London. https://doi.org/10.1007/978-1-349-21765-6_11
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DOI: https://doi.org/10.1007/978-1-349-21765-6_11
Publisher Name: Palgrave, London
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