Measuring and Reporting financial Performance

DeWet Hartman
Mind Map by DeWet Hartman, updated more than 1 year ago
DeWet Hartman
Created by DeWet Hartman about 6 years ago


Accounting Mind Map on Measuring and Reporting financial Performance, created by DeWet Hartman on 12/12/2013.

Resource summary

Measuring and Reporting financial Performance
1 present Profit/Loss
2 Used by large and small businesses
3 Has to include
3.1 Revenue
3.2 Finance costs
3.3 Share of profit or loss of associates
3.4 Tax Expence
3.5 A single amount comprising the total of:
3.5.1 The post Tax Profit or loss of discontinued operations
3.5.2 Post tax gain or loss recognised on the measurement to fair value. less cost to sell or on disposal of assets or diposal groups constituting the discontinued operations.
3.6 Profit or Loss
4 Key Questions answered by a statement of financial performance are:
4.1 Did the entity operate successfully over the reporting period by returning a profit
4.1.1 Profit = Total Revenue earned more than total expenses incurred
4.2 Did a Loss arise?
4.2.1 Loss= Total expenses incurred more than total revenue
5 statement of comprehensive income
5.1 required to be prepared by companies according to statutory requirements
6 Three main types of statements
6.1 Statement of Comp Income / Income statement / Profit/loss statement
6.2 Simple
6.2.1 Basic in nature and information. Its a listing of the revenue items and the expense items
6.3 Classified
6.3.1 Funcional method selling expenses directly related to selling the product. Admin expenses directly related to managing business affairs Finance expences Are a result of a Business's finances Miscellaneous expences expences that do not fit into a particular category
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