1. Called
up share capital not paid: This item may be shown either of the positions
indicated.
up share capital not paid: This item may be shown either of the positions
indicated.
2. Concessions,
patents, licenses, trademarks and similar rights and assets. If a company’s
assets were acquired for valued consideration and are not required to be shown
under goodwill, or the assets in question were created by the company itself,
the amount in respect in the assets can be included in company’s balance sheet.
patents, licenses, trademarks and similar rights and assets. If a company’s
assets were acquired for valued consideration and are not required to be shown
under goodwill, or the assets in question were created by the company itself,
the amount in respect in the assets can be included in company’s balance sheet.
3. Goodwill:
Amount representing goodwill can be
included to the extent that the goodwill was acquired for valuable
consideration.
Amount representing goodwill can be
included to the extent that the goodwill was acquired for valuable
consideration.
4. Own
shares: The nominal value of the shares held must be shown separately.
shares: The nominal value of the shares held must be shown separately.
5. Debentures:
The amount falling due after more than one year must be shown separately.
The amount falling due after more than one year must be shown separately.
6. Prepayments
and accrued income: This item may be shown either of the two positions
indicated.
and accrued income: This item may be shown either of the two positions
indicated.
7. Debenture
loans: The amount of any controvertible loans must be shown separately.
loans: The amount of any controvertible loans must be shown separately.
8. Payments
received on account: Payments received on account of order must be shown for
each of these items in so far as they are not shown as deductions from stocks.
received on account: Payments received on account of order must be shown for
each of these items in so far as they are not shown as deductions from stocks.
9. Other
creditors including taxation: The amounts for creditors in respect of taxation
must be shown separately form the amount for other creditors.
creditors including taxation: The amounts for creditors in respect of taxation
must be shown separately form the amount for other creditors.
10. Accrual
and Deferred Income: The two positions given for his item in format 1 are an
alternative to the position at J but if the if the item is not shown in a
position corresponding to that at J, it may be shown in either or both of the
other two positions. The two positions given for this item in format 2 are
alternatives.
and Deferred Income: The two positions given for his item in format 1 are an
alternative to the position at J but if the if the item is not shown in a
position corresponding to that at J, it may be shown in either or both of the
other two positions. The two positions given for this item in format 2 are
alternatives.
11. Net
current assets (liabilities): Amounts shown under prepayments and accrued
income must be taken into account when determining the amount to be shown for
this item.
current assets (liabilities): Amounts shown under prepayments and accrued
income must be taken into account when determining the amount to be shown for
this item.
12. Called
up share capital: The amount of allotted share capital and the amount of called
up share capital which has been paid up shall be shown separately.
up share capital: The amount of allotted share capital and the amount of called
up share capital which has been paid up shall be shown separately.
13. Creditors:
The balance sheet must distinguish between creditors who are due to paid within
one year (current liabilities) and longer-term creditors.
The balance sheet must distinguish between creditors who are due to paid within
one year (current liabilities) and longer-term creditors.
14. Cost
of sales, distribution costs, administrative expenses: These items must be
shown after taking into account any necessary provision s for depreciation or
denomination in value of assets.
of sales, distribution costs, administrative expenses: These items must be
shown after taking into account any necessary provision s for depreciation or
denomination in value of assets.
15. Income
from other fixed asset investments, other interest receivable and similar
income. Income and interest derived from group companies shall be shown
separately from income and interest derived from other sources.
from other fixed asset investments, other interest receivable and similar
income. Income and interest derived from group companies shall be shown
separately from income and interest derived from other sources.
16. Interest
payable and similar charges: The amount payable to group companies must be
shown separately.
payable and similar charges: The amount payable to group companies must be
shown separately.
The CAMB 1990 specifics certain items which must
not appear in the balance sheet as on the company. These are:
not appear in the balance sheet as on the company. These are:
(i) Preliminary
expenses;
expenses;
(ii) Expenses
or and commission on any issue of shares or debentures, and
or and commission on any issue of shares or debentures, and
(iii) Research
and development costs.
and development costs.
The profit and loss account can be shown in
either of two ways. Each way can be presented ‘Vertically’ or ‘horizontally’ so
that the Decree gives (2×2) four different formats. The rules about letters,
roman numerals and Arabic numbers which were explained above also apply to
profit and loss account. The horizontal format is rarely used.
either of two ways. Each way can be presented ‘Vertically’ or ‘horizontally’ so
that the Decree gives (2×2) four different formats. The rules about letters,
roman numerals and Arabic numbers which were explained above also apply to
profit and loss account. The horizontal format is rarely used.
Comment on the ‘operational’ format
(a) All
of the items begin with an Arabic number which means that in theory they could
all be shown in notes to the accounts. In practice some items will be shown in
the profit and loss account and others put
notes. The presentation by each company may therefore vary according to
what the directors think best.
of the items begin with an Arabic number which means that in theory they could
all be shown in notes to the accounts. In practice some items will be shown in
the profit and loss account and others put
notes. The presentation by each company may therefore vary according to
what the directors think best.
(b) Cost
are analyzed by function – that is, cost of sales, administrative expenses and
distribution costs. The Decree does not specify an exact definition of these costs.
are analyzed by function – that is, cost of sales, administrative expenses and
distribution costs. The Decree does not specify an exact definition of these costs.
(c) The
amount of profit or loss on ordinary activities before taxation must be shown
on the face profit and loss account.
amount of profit or loss on ordinary activities before taxation must be shown
on the face profit and loss account.
Comments
and the ‘type of expenditure’ format.
and the ‘type of expenditure’ format.
(a) Cost
are analyzed according to nature of the expense’ – that is, raw materials,
staff cost, depreciation etceteras.
are analyzed according to nature of the expense’ – that is, raw materials,
staff cost, depreciation etceteras.
(b) Notes
(a) and (c) above are also valid this format.
(a) and (c) above are also valid this format.
(c) This
format shows depreciation as a separate in the operation format. The Decree
requires that if the latter format is used the depreciation costs should be
shown in a note to the accounts.
format shows depreciation as a separate in the operation format. The Decree
requires that if the latter format is used the depreciation costs should be
shown in a note to the accounts.
Dividends are not mentioned at all in any of the
profit and loss account formats in the companies and Allied Matters Decree 1990
but the Decree does go on to specify that a company must show additional item
separately in its profit and loss account. These are:
profit and loss account formats in the companies and Allied Matters Decree 1990
but the Decree does go on to specify that a company must show additional item
separately in its profit and loss account. These are:
(a) Any
amount set aside or proposed to be set aside to, or withdrawn or proposed to be
withdrawn from, reserves, and
amount set aside or proposed to be set aside to, or withdrawn or proposed to be
withdrawn from, reserves, and
(b) The
aggregated amount of any dividends paid and proposed.
aggregated amount of any dividends paid and proposed.
Neither (a) or (b), appears in any of the formats
for profit and loss account and this means that the profit and loss account
must be extended.
for profit and loss account and this means that the profit and loss account
must be extended.
The Decree does require a profit and loss
account to show the balance at the start of the year and balance at the end of
the year, but some companies might choose to include this information too for
example.
account to show the balance at the start of the year and balance at the end of
the year, but some companies might choose to include this information too for
example.
Retained profit for the financial year 68
Profit and loss account at the beginning of year 431
Profit and loss account at the end of the year
499
The main concern in preparing published accounts
must be to present a true and fair view of the affaires of the company. This is
an overriding requirement and if necessary, directors may break some of the
rules of 1990 Decree, if that is necessary in order to give a true and fair
view.
must be to present a true and fair view of the affaires of the company. This is
an overriding requirement and if necessary, directors may break some of the
rules of 1990 Decree, if that is necessary in order to give a true and fair
view.
The principle of materially applies. Items need
not to be disclosed separately in spite of the rules of Decree if they are of
insignificant (that is, immaterial) value. Immaterial items can be included in
the total for another item. For example, if a company has very few’ other
debtors’ these can be included in the total for ‘trade debtor’ in the balance
sheet.
not to be disclosed separately in spite of the rules of Decree if they are of
insignificant (that is, immaterial) value. Immaterial items can be included in
the total for another item. For example, if a company has very few’ other
debtors’ these can be included in the total for ‘trade debtor’ in the balance
sheet.
