Standard Financial Statement Structure and Components

Balance Sheet Structure

Assets

Non-Current Assets

• Intangible Assets (Industrial property less Accumulated depreciation of intangible property)
• Property, Plant and Equipment (Buildings, furniture, and technical equipment less Accumulated depreciation)
• Investment Property (Investment buildings less Accumulated depreciation and Impairment of investment property)
• Non-Current Financial Assets (Non-current investments in equity instruments)
• Deferred Tax Assets

Current Assets

• Inventories (Merchandise less Impairment of merchandise plus Advances to suppliers)
• Trade and Other Receivables (Trade receivables, other receivables, and tax receivables less Impairment of trade receivables)
• Other Current Assets (Prepaid expenses)
• Current Financial Investments (Receivables from disposal of assets)
• Cash and Cash Equivalents (Cash and bank balances)

Total Assets

Equity and Liabilities

Shareholders' Equity

• Capital (Share capital less Uncalled capital)
• Share Premium and Reserves (Share premium, legal reserves, statutory reserves, and retained earnings less Own shares/equity)
• Net Income (Profit for the period)

Non-Current Liabilities

• Grants (Government capital grants)
• Non-Current Provisions (Provisions for tax and environmental provisions)
• Non-Current Financial Debt (Non-current debt or non-current payables)

Current Liabilities

• Trade and Other Payables (Suppliers, other payables, and advances from customers)
• Deferred Income

Total Equity and Liabilities

Income Statement Components

• Revenue (Merchandise sold less Prompt payment discounts on sales and Sales returns)
• Change in Finished Goods and Work in Process
• Supplies (Negative Merchandise purchased plus Prompt payment discounts on purchases plus Volume discounts plus Change in inventory of merchandise/raw materials, credit/debit balance)
• Other Operating Income (Income from other services)
• Personnel Expenses (Negative wages and Negative social security payables)
• Other Operating Expenses (Negative Leases and royalties, Negative Independent professional services, Negative Insurance premiums, Negative Utilities, Negative Other taxes, Negative Impairment losses on trade receivables plus Reversal of impairment of trade receivables)
• Amortization and Depreciation (Negative amortization and depreciation)

Operating Profit

• Finance Income (Income from dividends and income from debt securities)
• Finance Expense (Negative interest on payables)
• Impairment and Gains (Losses) on Disposal of Financial Instruments (Negative losses on investments and debt securities)

Financial Result

Profit Before Tax

• Income Tax (Negative/Debit or Positive/Credit)

Profit from Continuing Operations

Profit (Net Income)

Cash Flow Statement: Direct Method

Operating Activities

Cash received from customers

(Sales) + (Customers at Beginning of Period) – (Customers at End of Period) + (Advances from customers at End of Period)

Cash received from rental contracts

(Revenue) – (Unearned revenue at Beginning of Period)

Cash from commissions

(Revenue) + (Debtors at Beginning of Period)

Cash from operating grants

(Calculation not provided)

Cash paid to suppliers

Purchases = Consumption – Merchandise at Beginning of Period + Merchandise at End of Period

Payments = (Accounts payable at Beginning of Period) – (Accounts payable at End of Period) + (Advances to suppliers at End of Period)

Cash paid to employees

(Personnel Expenses) + (Wages and salaries payable at Beginning of Period) – (Wages and salaries payable at End of Period)

Publicity paid

(Publicity expense) – (Prepaid Expenses at Beginning of Period) + (Prepaid Expenses at End of Period)

Independent professional services paid

(Independent professional services) – (Creditors for provision of services at End of Period)

Interest received

(Financial revenue)

Interest paid

(Financial expenses) – (Accrued interest payable at End of Period)

Taxes paid

(Corporation tax payable at Beginning of Period)

Cash Flow from Operating Activities

Investing Activities

Sale of non-current assets (assuming NO TAX)

(Selling price for cash)

Purchase of non-current assets

(Acquisition price) – (Long-term suppliers of non-current assets at End of Period)

Cash Flow from Investing Activities

Financing Activities

Payments on debt

(Long-Term debts at Beginning of Period) – (Long-Term debts at End of Period) – (Reclassification into Short-Term)

Cash received from stockholders

(Amount paid)

Dividends paid

(Distribution of prior period net income) + (Interim dividends at End of Period)

Cash Flow from Financing Activities

Change in Cash

Cash at Beginning of Year

Cash at End of Year