2.20 What is the effect on the financial statements of the selection that the entity is a DORMANT company?
A. The following sections will be affected on selecting that the entity is a DORMANT company:
The following sections are skipped
• Independent auditor's report
• Statement of profit or loss and other comprehensive income
• Statement of changes in equity
• Cash flow statement
• Additional information to the Statement of profit or loss and other comprehensive income
• All references to ‘Dividends’
• Letter of representations
• Minutes of the AGM
Report of the Board of Directors
Reference is made in the principal activities that the company is dormant
The following parts are skipped:
• Review of current position, future developments and significant risks
• Dividends
• Independent Auditor
Accounting policies
The following are skipped by default:
• Revenue recognition
• Impairment of assets
Notes to the financial statements
The following are skipped by default:
• Financial risk management
• Expenses by nature
• Tax
Directors’ letter to the Registrar of Companies
This additional letter is prepared confirming that the Company is a small sized company
2.40 How can the template be used for the preparation of financial statements for entities not included in the predefined list of the template?
A. The template accommodates the preparation of financial statements for entities not in the predefined list as follows:
Entry table - Select Change TEXT repeated numerous times in FS
The sections ‘ENTITY’, ‘BOARD’ and STANDARDS AND LAWS in the entry table include cells that refer to the name of the entity the description of the Board of the entity and the description of the applicable laws for the entity. These cells should be amended accordingly to be suitable for the particular entity and this will update all relevant references in the financial statements document.
2.45 What are the different options for page subtitles in the financial statements?
A. There are 4 different options as follows:
• 31 December 2014
• FOR THE YEAR ENDED 31 DECEMBER 2014
• For the year ended 31 December 2014
• Year ended 31 December 2014
Notes
- The option selected for the cover page may differ from the option selected for the other pages in the financial statements.
- In case none of the above options are appropriate, the above values may be changed as desired.
2.61 A company has interest income from group companies’ part of which is taxed as trading income and part is taxed as interest. How do we account for this in the financial statements template?
A. Interest income is taxed either as interest or trading income by option in the entry table of the financial statements for the following mappings:
1) One option is to use map no. 3.Q.4. 2 and/or 3.Q.4. 2. 1 for the trading part of interest and 6.T.7. 2 for the interest part.
2) A second option is to use the following mappings which might not be used for the particular client (renamed as appropriate) for the trading part of the income:
1.60 What is the effect on the financial statements of the selection that the company is a shipping company?
The effects on the financial statements are as follows:
Entry table
- Extra section appears in Entry table for user to enter information regarding shipping activities that are used in the financial statements document.
- Alternative wording for PPE - this becomes “Vessel”
Report of the Board of Directors
Principal activities - wording changed
Income Statement
- “Cost of sales” is changed to “Direct expenditure”
- "Raw materials and consumables used" becomes "Changes in inventories of fuel and lubricants"
- Selling expenses combined with administration expenses by default
Notes to the financial statements affected
- Incorporation and principal activities - wording changed
- Principal activities - wording changed
- Accounting policies changed
- Retirement benefit costs
- Finance costs
- Tax
- PPE
- Financial risk management - Tourist industry risk
- Tax – hidden
- Significant agreements with management – shown by default
1.40 What is the effect on the financial statements of the selection that the set is consolidated?
A.The effects on the financial statements are as follows:
Contents
The word Consolidated appears in the title of the primary statements
Financial statements
“Financial statements” reference becomes ”consolidated financial statements” throughout the set.
Independent Auditors' Report
This is changed as per the technical circulars of ICPAC in relation to consolidated financial statements
Report of the Board of Directors
Principal activities - wording changes
Notes to the financial statements affected
1. Accounting policies changed
- Basis of preparation
- Basis of consolidation
- Business combinations
- Interests in joint ventures
2. Investments in subsidiaries
Management representation letter – amended accordingly
Subsidiaries excluded from the consolidated financial statements on the basis of Articles 142A(5)(a), (b) and (c) (As per ICPAC Technical Circular No. 51 the following are affected
1. Basis of preparation is amended according to the option selected
2. Independent auditors report depending on type of qualified opinion
3. Investments in subsidiaries – Table for listing of subsidiaries excluded from the consolidated financial statements enabled
1.41 What is the best practice for setting up a consolidated CaseWare file?
A.Consolidation dialog box:
Consolidation file
Avoid posting adjustments directly in the Consolidation file. Set up a separate Consolidation adjustments Caseware file to post this year’s (and prior year’s if necessary) consolidation adjustments. This file is added to the consolidation like a subsidiary file. This will make it easier to re-perform the consolidation in a new file in case the consolidation file is corrupted in any way. In addition adjustments are easier to control in a smaller separate file.
Give the Consolidation file an abbreviated name such as “CF” above. This is not automatically created by Caseware when opening a new consolidation dialog box and it is necessary for certain Caseware automatic documents such as the Consolidated Trial Balance to work.
Parent co file
The parent company Caseware file forms part of the consolidation tree like a subsidiary file. In this way separate financial statements of the parent can be created which will not be part of the Consolidation Caseware file. In addition this will make it easier to re-perform the consolidation in a new file in case the consolidation file is corrupted in any way.
Consolidation tree
The consolidation tree may be set up to show sub groups only if there is need to present subgroup figures separately, otherwise it is simpler to just add all subsidiaries in one level under the consolidation file as shown below:
1.50 What are the different options for producing unaudited FS?
A. The different options for producing unaudited FS are as follows:
Add the word 'unaudited' in cover page
Cover page title becomes ‘REPORT AND UNAUDITED FINANCIAL STATEMENTS’
Add the word 'unaudited' in primary statements heading
The word 'unaudited' appears in the heading of the primary statements which include the statement of profit or loss and other comprehensive income, the statement of financial position, the statement of changes in equity, and the cash flow statement.
Add the word 'unaudited' in the note to the FS heading
Heading becomes ‘Notes to the unaudited financial statements’
Present auditor's report
Auditor’s report is optional. The different reports for unaudited financial statements are as follows:
- Review report (No audit) (ISA2400 - other than statutory auditor)
- Review report (No audit) (ISA2410 - by statutory auditor))
- Compilation report (there are 4 different available formats for this report)
The above report may be signed by the auditors as "Auditors" or as "Accountants"
2.70 What are the different balance sheet presentation options in the “Entry table” and how do these affect the financial statements?
A. The different options and their effect on the financial statements are explained in the table here below:
|
Option
|
Effect on the financial statements
|
| Show or hide “Non current” headings on the face of the balance sheet | Heading and subtotals affected:
|
|
Loans to associated undertakings – Map numbers “1.B.1. 6” to “1.B.1. 7” |
“Loans to associated undertakings” may be presented either line by line for each map number on face of the Balance sheet or line by line in the note “Non-current loans receivable” which is the default presentation. When the presentation on the face of the Balance sheet is selected the short/ long term portion is entered directly in the appropriate line of the balance sheet. |
|
Loans from associated undertakings – Map numbers “2.J.1. 1” to 2.J.1. 4 |
“Loans from associated undertakings” may be presented either line by line for each map number on face of the Balance sheet or line by line in the note “Borrowings” which is the default presentation. When the presentation on the face of the Balance sheet is selected the short/ long term portion is entered directly in the appropriate line of the balance sheet. |
|
Overdraft and short term loans - Map numbers “2.I.1. 1” to “2.I.1. 3” |
“Overdrafts”, “Factoring account” and “Short term loans” may be presented either line by line for each map number on face of the Balance sheet or line by line in the note “Borrowings” which is the default presentation. |
|
Finance liabilities - Map number “2.I.2. 2” |
“Finance liabilities” may be presented either on face of the Balance sheet cross referenced to a separate “Finance liabilities” note which is the default presentation or together with other liabilities in the “Borrowings” note. |
|
Reserves - Map numbers “2.P.8. 1” to “6.T.8. 9” |
“Reserves” may be presented either line by line for each map number or as a total for all reserves on face of the Balance sheet or as part of the note “Other reserves”. |
|
Retained earnings Map number “2.P.8. 1” |
“Retained earnings” may not be applicable for certain types of entities, such as partnerships, joint ventures, sole traders, branches of companies, provident funds, and liability investment funds. User may need to overwrite this automatic selection. |
|
Share premium account Map number "2.P.7. 6" |
“Share premium account” may be presented either on face of the Balance sheet, which is the default presentation, or as part of the note “Other reserves”. |
|
Non-refundable advances - Map number “2.P.8.11” |
“Non refundable advances” may be presented either on face of the Balance sheet or as part of the note “Other reserves” which is the default presentation. |
|
Related companies/ Directors'/ Shareholders' balances- Map numbers from “1.E.2. 1” to “1.E.2. 6” and from “2.H.3. 1” to “2.H.3. 6” |
With this option “Receivables from related parties” may be presented either line by line for each map number on face of the Balance sheet or as part of the note “Trade and other receivables” or “Trade and other payables” which is the default presentation. |
|
Government grants - Map number “2.H.6. 2” |
“Government grants” may be presented either on face of the Balance sheet cross referenced to a separate “Government grants” note or as part of the note “Deferred income” which is the default presentation. |
|
Special contribution for defence - Map number “2.H.4. 7” |
With this option “Special contribution for defence liability” may be presented either within “Current tax liabilities” note which is the default presentation or as part of “Trade and other payables” note. |
| Payable dividends – Map no 2.H.2.20 | “Payable dividends” may be presented either on face of the Balance sheet which is the default presentation or in the note “Trade and other payables”. |
| Authorisation wording option | Choice between 2 options, ‘authorised these financial statements for issue’ and ‘authorised the issue of these financial statements.’ |
3.00 What are the different “Date” fields in the “Entry table” and how do these affect the financial statements?
A. The different Date fields in the “Entry table” and their effect on the financial statements are explained in the table here below:
|
Field
|
Effect on the financial statements
|
| FS YEAR | This shows the financial year and is automatically updated from the file engagement properties. |
| Balance sheet dates | This is text fields showing the year in “0000” format automatically updated from the file engagement properties. This will be the heading of the balance sheet columns and all the notes showing balances as at the reporting period end. These fields format may be changed from “0000” to specific date format such as “31.12.2008” if required. |
| Show opening position in long notes eg PPE | “Long” notes are notes which show the opening position two years back and movement through to prior period end and the current period end. In some cases where the entity starts operations through the acquisition of another on-going business then the user may choose to show the opening comparative balances in these notes even though the movement in comparatives is hidden. |
|
Income statement header – current period |
This is text field gives the current year period end and is automatically updated from the file engagement properties. This will be part of the heading of the Income statement and will be used extensively throughout the document where reference is made to the current period end. In cases where the current period is not a full year the wording changes from “year ending” to “period from … to …” |
| Income statement columns |
This is text fields showing the year in “0000” format automatically updated by the corresponding “Format year option” being selected. This will be the heading of the Income statement and cash flow statement columns and their corresponding notes showing income and expenses for the reporting periods. These fields format may be changed from “0000” to specific date format such as “01.01.2008 to 31.12.2008” if required. |
| 1st and last day of the current and comparative period | This is text fields comprise the corresponding date references in words format used throughout the document |
| Long date format with a comma | Dates in text paragraphs are presented with a comma after the month as follows: ‘31 December, 2010’ |
| Date of signature |
This is text field denotes the date of signature of the financial statements and appears in the ‘Report of the Board of Directors’ and the ‘Statement of financial position’. This date is linked to the date in the ‘Auditor's report’, the ‘Minutes of the Shareholders Annual General Meeting and the ‘Management representation letter. Even though the dates in all the above are linked to the date of signature entered above, they may be independently changed if appropriate. |
3.10 What are the different currency options in FS?
A A. The currency of the FS is defined in the Entry table as explained here below:
|
Field
|
Effect on the financial statements
|
| CURRENCY options | This dropdown field defines the currency of the entire FS. Currencies not in the list may be entered here manually. |
| as a sign € and for text paragraphs € | The currency sign is used for all the table headings and may differ from the sign used in the text paragraphs. |
| (text to follow numbers in text eg 'thousand' | This field defines the text to follow all currency values in text paragraphs throughout the entire set. |
| Show opening position in long notes eg PPE | “Long” notes are notes which show the opening position two years back and movement through to prior period end and the current period end. In some cases where the entity starts operations through the acquisition of another on-going business then the user may choose to show the opening comparative balances in these notes even though the movement in comparatives is hidden. |
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