Primary financial statements and Reserves: Difference between pages

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imported>Doug Williamson
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''Financial reporting.''
1.  


Under International Accounting Standards (IAS) 'primary' financial statements are the main external accounting statements that must be presented.  
''Accounting''.


Reserves represent the amount of money ‘owed’ to the owner (shareholder) of the company.


These are:
In a profitable and conservative company, reserves will normally comprise a significant balance of accumulated undistributed profits.


* Statement of financial position (balance sheet).
* Income statement (profit or loss account), which can be included in the statement of comprehensive income.
* Statement of comprehensive income.
* Statement of changes in equity.
* Statement of cash flows.


2.


The primary financial statements are supported by Notes to the external accounts, providing additional and more detailed financial information.
''Banking''.


Deposits maintained by non-[[central bank]] [[monetary financial institution]]s with their central bank in the latter's capacity as 'the bankers' bank'. Central banks may require institutions to maintain minimum balances with the central bank, in which case balances in excess of the minimum are known as 'excess reserves'.


==See also==
Of course banks publish accounts and use the term in the accounting sense also - do not be confused by this.
* [[Annual report]]
* [[Balance sheet]]
* [[Cash flow statement]]
* [[Entity]]
* [[Financial reporting]]
* [[IAS 1]]
* [[Income statement]]
* [[International Accounting Standards]] (IAS)
* [[Notes]]
* [[Primary statements]]
* [[Statement of cash flows]]
* [[Statement of changes in equity]]
* [[Statement of comprehensive income]]
* [[Statement of financial position]]
* [[Statement of profit or loss and other comprehensive income]]


[[Category:Accounting,_tax_and_regulation]]
 
[[Category:Compliance_and_audit]]
== See also ==
* [[Interest on excess reserves]]
* [[Merger reserve]]
* [[Official reserves]]
* [[Reserve requirements]]
* [[Special drawing rights]]
* [[Trapped cash]]
 
[[Category:Long_term_funding]]

Revision as of 09:44, 30 May 2015

1.

Accounting.

Reserves represent the amount of money ‘owed’ to the owner (shareholder) of the company.

In a profitable and conservative company, reserves will normally comprise a significant balance of accumulated undistributed profits.


2.

Banking.

Deposits maintained by non-central bank monetary financial institutions with their central bank in the latter's capacity as 'the bankers' bank'. Central banks may require institutions to maintain minimum balances with the central bank, in which case balances in excess of the minimum are known as 'excess reserves'.

Of course banks publish accounts and use the term in the accounting sense also - do not be confused by this.


See also