imported>Doug Williamson |
imported>Doug Williamson |
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| ''Financial reporting''.
| | The value of a currency in terms of real purchasing power. |
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| In financial reporting, primary statements are the main accounting statements required to be presented.
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| | It is calculated by comparing the price of a hypothetical market basket of goods in two different countries, translated into the same currency at the prevailing exchange rate. |
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| These normally include statements of:
| | It is useful in measuring the price competitiveness of domestic goods in international markets. |
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| * Financial position (balance sheet).
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| * Comprehensive income (profit or loss).
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| * Changes in equity.
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| * Cash flows.
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| The primary statements are supported by ''notes'' providing additional and more detailed financial information.
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| The names of the primary financial statements are not normally mandatory, and they also differ according the accounting regime under which an entity is reporting.
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| ====Comprehensive income and profit or loss====
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| Comprehensive income includes both:
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| *Profit or loss for the period; and
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| *Other comprehensive income for the period.
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| Many entities report their profit or loss and other comprehensive income in two separate statements.
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| In these cases, there are FIVE primary financial statements: cash flows, changes in equity, comprehensive income, financial position, and profit or loss.
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| The statement of profit or loss is also known as the ''income statement''.
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| == See also == | | == See also == |
| * [[Entity]] | | * [[Currency]] |
| * [[FVTOCI]] | | * [[Exchange rate]] |
| * [[FVTPL]] | | * [[Real]] |
| * [[IAS 1]]
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| * [[Income statement]]
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| * [[International Accounting Standards]]
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| * [[Notes]]
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| * [[Statement of cash flows]]
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| * [[Statement of changes in equity]]
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| * [[Statement of comprehensive income]]
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| * [[Statement of financial position]]
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| * [[Statement of profit or loss and other comprehensive income]]
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| [[Category:Accounting,_tax_and_regulation]] | | [[Category:Manage_risks]] |
The value of a currency in terms of real purchasing power.
It is calculated by comparing the price of a hypothetical market basket of goods in two different countries, translated into the same currency at the prevailing exchange rate.
It is useful in measuring the price competitiveness of domestic goods in international markets.
See also
