Summary
Summary COMPANIES: AUDIT REPORTS & PUBLISHED ANNUAL REPORTS
- Course
- Accounting
- Institution
- 12
COMPANIES: AUDIT REPORTS & PUBLISHED ANNUAL REPORTS theory summarized in detail
[Show more]
Seller
Follow
Content preview
Grade 12 Theory Notes: Companies – Audit Reports and Published Annual Reports.COMPANIES: AUDIT REPORTS & PUBLISHED ANNUAL REPORTS
DIFFERENT TYPES OF COMPANY FINANCIAL STATEMENTS:
• ANNUAL FINANCIAL STATEMENTS
• PROVISIONAL ANNUAL FINANCIAL STATEMENTS
• INTERIM OR PRELIMINARY REPORTS
• GROUP AND CONSOLIDATED FINANCIAL STATEMENTS
• FINANCIAL INFORMATION IN A CIRCULAR, PROSPECTUS OR PROVISIONAL ANNOUNCEMENT OF RESULTS
Detailed financial statements of a business entity reflect all:
• Assets, Owners’ Equity and Liabilities
• Income and Expenses
The published financial statements have to reflect certain important information but companies also choose to include other interesting information about
the company which they believe will be interesting and important to the parties who will read their financials.
Important stakeholders interested in the AFS are:
• Shareholders
• Directors
• Other employees of the company/ Trade Unions
• SARS
• Creditors
• Lenders such as banks and other financial institutions.
, Grade 12 Theory Notes: Companies – Audit Reports and Published Annual Reports.
Section 30 of the Companies Act covers auditing of financial statements:
• Public listed companies (LTD)and certain Private companies ((PTY) LTD) are required to have independent audits of their financial statements because of
the high level of public interest;
• Other types of companies, CC, Partnership, Sole Proprietor, may need to undergo an independent review or depending on the size of the business they
could be exempt from either a review or audit.
Our focus is only on AUDITED PUBLISHED ANNUAL FINANCIAL STATEMENTS OF PUBLIC COMPANIES
Companies are required to:
• Prepare published financials every 6 months;
• Publish the AFS within 6 months of the year-end;
• Comply with International Financial Reporting Standards (IFRS), the Companies Act, King Code;
• Pay provisional tax every 6 months based on their interim and final results.
PUBLISHED ANNUAL FINANCIAL STATEMENTS OF PUBLIC COMPANIES essential components are:
MAIN COMPONENTS:
• Independent Auditor’s Report
• Directors Report
• Statement of Comprehensive Income
• Statement of Financial Position
• Cash Flow Statement
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Stuvialearner101. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R100,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62890 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now