Financial statements are a concentrated form of accounting information of an enterprise or other organization, an important basis for reflecting its financial status, operating results and cash flow, and an important tool for decision-making and evaluation by various stakeholders. Therefore, the preparation of financial statements is an important part of accounting work, and certain methods and steps need to be followed to ensure that the financial statements are true, complete, accurate and comparable. This article will introduce the methods and steps of preparing financial statements from the following aspects.
1.Determine the purpose and object of the preparation of financial statements.
The purpose of preparing financial statements is to meet the information needs of different stakeholders, such as investors, creditors, managers, employees, society, etc. The object of preparing financial statements refers to the subjects reflected in the financial statements, such as enterprises, departments, projects, products, etc. According to different purposes and objects, the content, form, duration, frequency, and scope of financial statements will be different, and they need to be selected and determined according to the specific situation.
2.Determine the basis and norms for the preparation of financial statements.
The basis for preparing financial statements refers to the accounting data and accounting on which the financial statements are based, such as original vouchers, accounting vouchers, ledgers, general ledgers, account balance sheets, adjusting entries, etc. The standard for preparing financial statements refers to the accounting standards, accounting policies, accounting systems, accounting estimates, etc., which are followed by the financial statements, such as the Accounting Standards for Business Enterprises, the Accounting System for Business Enterprises, and the Accounting Report for Business Enterprises. When preparing financial statements, it is necessary to check, adjust, summarize, calculate and other operations according to the basis and specifications to ensure the correctness and consistency of the financial statements.
3.The main steps in the preparation of financial statements.
The main steps in preparing financial statements include the following:
Preparation of the balance sheet. A balance sheet is an accounting statement that reflects the assets, liabilities, and owners' equity of a business or other organization at a specific point in time, and is the core of financial statements. There are many ways to prepare the balance sheet, such as the balance method, the increase and decrease method, the reconciliation method, etc., the most commonly used of which is the balance method, that is, according to the closing balance of various assets, liabilities and owners' equity, and at the same time pay attention to the balance relationship, that is, assets are equal to liabilities plus owners' equity. The steps to prepare the balance sheet are as follows:
According to the format of the balance sheet, determine the names and contents of various assets, liabilities and owners' equity, such as current assets, non-current assets, current liabilities, non-current liabilities, paid-in capital, capital reserves, surplus reserves, undistributed profits, etc.
Fill in the list according to the closing balance of each asset, liability and owner's equity, while paying attention to the following points:
For each item in the balance sheet, the beginning balance and the closing balance are required to be filled in for comparative analysis.
The closing balance of each item of the balance sheet can be calculated or directly filled in according to the accounting data such as general ledger accounts, detailed accounts, account balance sheets, account summary tables, etc., and the specific methods are as follows:
Fill in the column based on the analysis of the closing balance of the detailed account. For example, accounts receivable, prepayment, accounts payable, advance receipts and other items need to be filled in according to the closing balance of the corresponding detailed account, after deducting the provision for bad debts, the provision for inventory decline, the provision for impairment of fixed assets, the provision for impairment of intangible assets and other impairment provisions.
Calculated and filled in based on the closing balance of the general ledger account. For example, inventory, fixed assets, intangible assets, projects in progress, long-term equity investments, held-to-maturity investments and other items need to be filled in according to the closing balance of the corresponding general ledger account, after deducting the closing balance of accumulated depreciation, accumulated amortization, impairment provision and other related accounts.
Fill in directly according to the closing balance of the general ledger account. For example, monetary funds, transactional financial assets, fixed assets liquidation, construction materials, deferred tax assets, short-term loans, transactional financial liabilities, notes payable, employee remuneration payable, taxes payable, deferred income tax liabilities, projected liabilities, paid-in capital, capital reserve, surplus reserve and other items can be directly filled in according to the closing balance of the corresponding general ledger account.
Some special items of the balance sheet, the following points need to be noted:
The undistributed profit item shall be calculated and filled in according to the closing balance of the profit account and the profit distribution account for the current year, and if it is an uncovered loss, it shall be filled in with the number "one" in this item.
Long-term amortized expense items should be stated on the basis of the closing balance of the long-term amortized expense account after deducting the amount to be amortized within one year, and the amount to be amortized within one year should be entered into the non-current assets due within one year.
Long-term borrowings and bonds payable should be based on the closing balance of the long-term borrowings and bonds payable account, after deducting the part that is due within one year from the balance sheet date and the enterprise cannot voluntarily extend the repayment obligation, and the part that is due within one year from the balance sheet date and the enterprise cannot voluntarily roll over the repayment obligation is reflected in the non-current liability items due within one year.
If there is a debit balance in the corresponding account of the liability items such as taxes and fees, they should be filled in with a "one" numberAsset items such as the disposal of fixed assets, if there is a credit balance in their corresponding accounts, should also be filled in with a "one" number.
Prepare notes to the balance sheet and fill them in according to actual needs and records such as records and records such as contingent liabilities, important events, important accounting policies and accounting estimates.
Preparation of income statement. The income statement is an accounting statement that reflects the income, expenses, and profits of an enterprise or other organization in a certain period, and is an important part of the financial statement. There are many ways to prepare the income statement, such as the income method, the expense method, the cost method, the gross profit method, etc., the most commonly used of which is the income method, that is, according to the amount of income and expenses to fill in, and at the same time pay attention to the relationship between income and expenditure, that is, income minus expenses is equal to profit. The steps to prepare the income statement are as follows:
According to the format of the income statement, determine the name and content of each income and expense, such as operating income, operating costs, business taxes and surcharges, sales expenses, management expenses, financial expenses, asset impairment losses, investment income, operating profits, non-operating income, non-operating expenses, total profits, income tax expenses, net profit, etc.
According to the amount of income and expenses incurred, fill in, and pay attention to the following points:
Each item in the income statement should be filled in with the figures in the current period and the amount in the same period of the previous year for comparative analysis.
The amount of each purpose of the income statement can be calculated or directly filled in according to the accounting data such as general ledger accounts, detailed accounts, account balance sheets, account summary tables, etc., and the specific methods are as follows:
Calculated and filled in based on the analysis of the amount incurred in the detailed account. For example, items such as operating income, operating costs, business taxes and surcharges, sales expenses, management expenses, financial expenses, asset impairment losses, etc., need to be filled in according to the amount incurred in the corresponding detailed accounts, after deducting the amount of returns, discounts, bad debts, inventory decline, fixed asset impairment, intangible assets impairment and other related accounts.
Calculated and filled in based on the amount incurred in the general ledger account. For example, investment income, non-operating income, non-operating expenses, income tax expenses and other items need to be filled in according to the amount of the corresponding general ledger account, after deducting the amount of the transfer-in, transfer-out, reversal, deduction and other related accounts.
Fill in the amount directly according to the general ledger account. For example, items such as operating profit, total profit, net profit, etc., can be directly filled in according to the amount incurred in the corresponding general ledger account.
Some special items in the income statement need to pay attention to the following:
The operating profit item shall be calculated and filled in according to the operating income minus the operating costs, business taxes and surcharges, sales expenses, management expenses, financial expenses, asset impairment losses and other items, and if it is a loss, it shall be filled in with a "one" number in this item.
The total profit item shall be calculated and filled in according to the operating profit plus the amount of investment income, non-operating income and other items, minus the amount of non-operating expenses and other items, and if it is a loss, it shall be filled in with the number "one" in this item.
The net profit item shall be calculated and filled in according to the total profit minus the amount incurred by income tax expenses and other items, and if it is a loss, it shall be filled in with "one" in this item.
The notes to the income statement shall be prepared and filled in according to the actual needs and the records of the relevant account books, such as main business income, main business costs, other business profits, non-operating income and expenditure, income tax expenses, etc.
Preparation of cash flow statements. The cash flow statement is an accounting statement that reflects the cash inflow and outflow of an enterprise or other organization in a certain period of time, and is an important part of the financial statement. There are many ways to prepare cash flow statements, such as direct method, indirect method, etc., the most commonly used of which is the indirect method, that is, according to the net profit and changes in various assets and liabilities to adjust, and at the same time pay attention to the classification of cash flow, that is, divided into operating activities, investment activities and financing activities. The steps to prepare a cash flow statement are as follows:
According to the format of the cash flow statement, determine the name and content of each cash flow, such as net cash flow from operating activities, net cash flow from investment activities, net cash flow from financing activities, net increase in cash and cash equivalents, balance of cash and cash equivalents at the beginning of the period, balance of cash and cash equivalents at the end of the period, etc.
According to the changes in net profit and various assets and liabilities, make adjustments, and pay attention to the following points:
Each item in the cash flow statement should be filled in with figures in the current period and the same period of the previous year for comparative analysis.
The adjustment amount for each purpose of the cash flow statement can be calculated or directly filled in according to the accounting data such as income statement, balance sheet, account balance statement, account summary statement, etc., and the specific methods are as follows:
Fill in the column according to the income statement adjustment calculation. For example, the net cash flow item from operating activities needs to be filled in according to the amount of net profit items, plus or minus the amount of non-cash income and expenditure items, such as depreciation, amortization, impairment loss, investment income, interest income, interest expense, income tax expense, etc.
Calculated based on balance sheet adjustments. For example, the net cash flow items generated by operating activities need to be filled in according to the changes in the opening balance and closing balance of various assets, liabilities and owners' equity, plus or minus the changes in non-cash change items, such as accounts receivable, prepayment, inventory, accounts payable, advance receipts, employee remuneration payable, taxes payable, etc.;For example, the net cash flow items from investment activities need to be filled in according to the changes in the opening and closing balances of various investment assets, plus or minus the non-cash changes in them, such as long-term equity investments, held-to-maturity investments, fixed assets, intangible assets, construction in progress and other itemsFor example, the net cash flow item from financing activities needs to be filled in according to the change in the opening and closing balances of various borrowings and owners' equity, plus or minus the non-cash change items, such as short-term borrowings, long-term borrowings, bonds payable, paid-in capital, capital reserve, surplus reserve, undistributed profits, etc.
Fill in directly based on general ledger account adjustments. For example, items such as the net increase in cash and cash equivalents, the balance of cash and cash equivalents at the beginning of the period, and the balance of cash and cash equivalents at the end of the period can be directly filled in according to the amount incurred or the closing balance of the corresponding general ledger account.
For some special items in the cash flow statement, the following points need to be noted:
The net cash flow items from operating activities should be based on the notes to the cash flow statement, indicating the specific content and amount of cash receipts and cash expenditures contained therein, such as cash received from the sale of goods, provision of services, cash for the purchase of goods, cash paid for services, cash paid to and for employees, various taxes and fees paid, etc.
The items of net cash flows from investment activities should be based on the notes to the cash flow statement, indicating the specific content and amount of cash receipts and cash expenditures contained therein, such as cash received from investments, cash received from investment income, net cash recovered from disposal of fixed assets, intangible assets and other long-term assets, cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets, cash paid for investments, etc.
The net cash flow items generated by financing activities should be based on the notes to the cash flow statement, indicating the specific content and amount of cash receipts and cash expenditures contained therein, such as cash received from investments, cash received from borrowings, cash received from bond issuance, cash paid for debt repayment, cash for distribution of dividends, profits or interest payments, etc.
The item of net increase in cash and cash equivalents shall be calculated on the basis of the sum of the net cash flows from operating activities, investment activities and financing activities, and in the case of a decrease, it shall be entered under the number "I" in this item.
The opening cash and cash equivalents balance items should be filled in according to the closing cash and cash equivalents balances of the previous period, and if they are negative, they should be entered with "one" in this item.
The closing cash and cash equivalents balance items should be calculated based on the opening cash and cash equivalents balance plus the net increase in cash and cash equivalents, and if it is negative, it should be entered as "one" in this item.
Prepare notes to the cash flow statement and fill in them according to actual needs and records such as records and analysis of relevant reference books, such as the composition of cash and cash equivalents, non-cash investments and financing activities, supplementary information to the cash flow statement, etc.
Preparation of a statement of changes in owners' equity. The statement of changes in owners' equity is an accounting statement that reflects the changes in the owner's equity of an enterprise or other organization in a certain period of time, and is an important part of the financial statements. There are many ways to compile the statement of changes in owners' equity, such as direct method, indirect method, etc., the most commonly used of which is the direct method, that is, according to the difference between the opening balance and the closing balance of each owner's equity, and at the same time pay attention to the classification of owners' equity, that is, it is divided into paid-in capital, capital reserve, surplus reserve, undistributed profits, etc. The steps to prepare a statement of changes in owners' equity are as follows:
According to the format of the statement of changes in owners' equity, determine the name and content of each owner's equity, such as paid-in capital, capital reserve, surplus reserve, undistributed profit, total owner's equity, etc.
According to the difference between the opening balance and the closing balance of each owner's equity, it is filled in, and the following points should be noted:
Each item in the statement of changes in owners' equity needs to be filled in the figures of the current period and the amount of the same period of the previous year for comparative analysis.
The difference of each purpose of the statement of changes in owners' equity can be calculated or directly filled in according to the accounting data such as balance sheet, income statement, cash flow statement, account balance statement, account summary statement, etc., and the specific methods are as follows:
Calculated and filled in based on balance sheet differences. For example, items such as paid-in capital, capital reserve, and surplus reserve need to be filled in according to the difference between the opening balance and the closing balance of the corresponding balance sheet items.
It is calculated and filled in according to the difference in the income statement. If there are no profit distribution items, the difference between the amount of the corresponding income statement items and the amount of profit distribution items added or subtracted, such as the amount of surplus reserve, distribution of dividends, conversion of capital and other items, shall be filled.
Calculated and filled in according to the difference in the cash flow statement. For example, the net cash flow items generated by financing activities need to be filled in according to the amount of the corresponding cash flow statement items, plus or minus the non-cash change items, such as share-based payments, bond conversions, asset replacements, etc.
Fill in directly according to the general ledger account difference. For example, the total owner's equity item can be directly filled in according to the difference between the opening balance and the closing balance of the corresponding general ledger account.
For some special items in the statement of changes in owners' equity, the following points need to be noted:
According to the type and quantity of paid-in capital, different names and contents such as share capital, shares, and ** should be filled in, such as share capital (ordinary shares), share capital (preferred shares), shares (state-owned), shares (collective), shares (legal person), shares (individual), *A shares), *B shares, etc.
For capital reserve items, different names and contents such as capital premium, issuance premium, acceptance of donations, asset appraisal and appreciation, and foreign currency capital conversion difference should be filled in according to the ** and use of capital reserve.
According to the type and purpose of the surplus reserve, the names and contents of the statutory surplus reserve, the arbitrary surplus reserve, the community chest, the reserve, and the enterprise development shall be filled in.
Prepare the notes to the statement of changes in owners' equity, and fill them in according to the actual needs and the analysis of the records of the relevant reference books, such as changes in share capital, changes in shares, changes in **, profit distribution, etc.