Financial statements, Balance sheet, Profit and loss account, Generally accepted Accounting Principles (GAAP)


As the owners of a company the shareholders, through its Board, are responsible for the hiring and firing of the management of their company. The principles of company finance are therefore based upon the assumption that the objective of management is to maximise the wealth of its ordinary shareholders. This paper discusses some of the general principles which are applied in the preparation of financial statements. It lists and explains the following components of a financial statement; Statement of Accounting Policies, Balance Sheet, Profit and Loss Account, Notes to the Accounts, Cash flow statements ,Value added statements, Five year financial summary, Auditor's report, and Director's report.

Author Bio

The author is a staff of the Central Bank of Nigeria.

Publication Title

CBN Bullion






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