Summary of Notes to Financial

Statements
For Reference Only
 The Clich Notes
General
Companys brief introduction
Domicile? Legal form? Country of incorporation? Registered
office? Currency? Principal activity?
Authorization for issue
Financial statements are to be approved and authorised for
issue on XXX (date) by
Currency: Singapore dollars
Basis of Accounting:
FRS
Historical cost basis except for ?
Any exception, e.g. fair value?
 The Clich Notes (contd)
Significant accounting policies
Basically go through each item given and provide a
brief summary of the accounting treatment using
the information available.
E.g.:
PPE are carried at ?
Depreciation method & assumptions?
Inventory: LCNRV? FIFO, LIFO, or Weighted Avg.?
IP: Cost vs. FV Model? Recognition for FV G/L?
FVPL/FVOCI securities
Non-current asset held for sale
 The Clich Notes (contd)

Authorization for issue, sometimes, comes last

after all other footnotes:
The financial statements are set to be approved and
authorized for issue on XXX (date) by directors
resolution.

Events after the reporting period comes last

after all other footnotes
 Profit before tax
A financial note for Profit before tax is needed
only when income statement is prepared by
function
Need to disclose how profit before tax is arrived at
Profit before tax is calculated after deducting the
following items:
Depreciation expense
Staff costs
Any other significant expense items
Accounts or Trade Receivable
Receivables XXX

Allowance for impairment of receivables XXX

Receivable, net XXX

 Inventories
Inventories are composed of the following:
Ending Balance
Raw material XXX
Finished goods XXX
Work-in-progress XXX
Total XXX

Allowance for inventory write-down should be

reported in the financial note
Property, plant and equipment PPE1 PPE2 Total
Cost/valuation on 1 January 2016
Additions XXX XXX XXX
Revaluation adjustment (revaluation model only) XXX (XXX) XXX
Reclassified as held-for-sale (XXX) (XXX) (XXX)
Transferred from (to) investment property XXX XXX XXX
Disposal (XXX) (XXX) (XXX)
On 31 December 2016

Accumulated Depreciation
On 1 January 2016 XXX XXX XXX
Change for the year XXX XXX XXX
Reclassified as held-for-sale (XXX) (XXX) (XXX)
Transferred from (to) investment property XXX XXX XXX
Disposal (XXX) (XXX) (XXX)
On 31 December 2016

Net book value

On 31 December 2016 XXX XXX XXX
On 31 December 2015 XXX XXX XXX
Also disclose in words the fair value and how it is estimated.
 Investment Property (Cost Model)
Investment Property
Cost/valuation on 1 January 2016
Additions XXX
Transferred from ( to ) PPE (XXX)
Disposal (XXX)
On 31 December 2016

Accumulated Depreciation
On 1 January 2016 XXX
Change for the year XXX
Transferred from (to) PPE (XXX)
Disposal (XXX)
On 31 December 2016
Net book value
On 31 December 2016 XXX
On 31 December 2015 XXX

Also disclose in words the fair value and how it is estimated.

 Investment Property (FV Model)

Investment Property
Fair value on 1 January 2016

Additions XXX

Transferred from ( to ) PPE (XXX)

Fair Value gain (loss) XXX

Disposal (XXX)

On 31 December 2016 XXX

 Non-current Asset Held For Sale /
Held for Distribution to Owners
Non-Current Asset Held for sale/distribution XXX
Less: accumulated impairment (XXX)
Non-current asset held for sale/distribution, net XXX

The non-current asset is intended to be disposed (distributed) within

one year. Firms commitment to sell (distribute) is highly probable

Impairment loss at the date of the transfer was; Impairment loss at

year end was
 Bank Loan
Bank loan of XXX amount, XXX interest rate,
XXX payment terms

Due within 1 year XXX

Due between 1 and 5 years XXX
Due above 5 years XXX
 Share Capital
Only need to disclose the changes in the
number of shares (because the amount is in
Statement of Change in Equity)
Num of shares
1 January 2012 XXX
Issued During the year XXX
Shares issued in lieu of ordinary dividends XXX
Shares buyback during the year (XXX)
31 December 2012 XXX
 Dividends
On XXX (date), a dividend of $XXX per share was
declared/paid on XXX ordinary shares in issue.

Non-cash dividends:
On XXX (date), Company announced to distribute
XXX to its shareholders. As per company policy,
Companys shareholders approved this dividend
payment on XXX (date) and Company settled the
dividend on XXX (date).
 A few exam-related reminders
Journal entries:
Need to write the date
No need to write the one-sentence summary
Do NOT use abbreviations unless you are REALLY, REALLY, REALLY,
REALLYrunning out of time (also apply to financial statements)
Distinguish the useful info from the irrelevant info in the question

Financial statements: only need to prepare for 1 year

Income statement and balance sheet: 1 column for the current
year
Changes in Equity: Beginning Balance to Ending Balance of the
current year
Income statement by function and by nature: both need to show
Finance Cost
 Some suggestions
Make sure you are very clear about the basic concepts:
Revenue
Expenses
Gains
Losses
Net Income/Net Profit/Earnings
Other Comprehensive Income
Comprehensive Income
Assets
Liabilities
Equity (and its components: Share Capital, Retained Earnings, FV
reserve for FVOCI, Revaluation Reserve for PPE)
Retained Earnings
 Some suggestions (cont.)
Make sure you are very clear about the relation
among the items in the financial statements:
Beginning Retained Earnings + Net Income Dividends
= Ending Retained Earnings
Beginning Equity + Comprehensive Income
Dividends Change in Share Capital = Ending Equity
Comprehensive Income= Net Income + Other
Comprehensive Income
Net Income = Revenues + Gains Expenses - Losses
END

18