Interpretation of Financial Statements

• • Statement of Comprehensive Income is also known as the Profit and Loss Account 
  • It shows the income and expenditure of a business over a period of time - usually a year - and calculates the amount of  profit made
• Stakeholder Interest in the Profit & Loss Account:

  1. Shareholders
  2. Employees
  3. Managers & Directors
  4. Suppliers
  5. Government
• The Statement of Financial Position contains the financial information required to draw conclusions about the liquidity of the business

  -> shows the financial structure of a business at a specific point in time
• Stakeholder Interest in the Balance Sheet:

  • Shareholders
  • managers and directors
  • Suppliers and creditors
  • employees