Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

The directors of D plc are getting ready to produce the year-end financial statements, together with the notes to the accounts.
(a)[3]

State three functions of the notes to the accounts in the financial statements.

(b)[15]

Prepare the statement of changes in equity for the year ended 31 December 2017. A total column is not needed.

(c)[7]

Advise whether the directors acted in shareholders’ best interests or not. Justify your response with relevant calculations.

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