Chapter 2, Problem 1IFRP

(a)

To determine

Financial Statements: The part of annual report that consist the information about the financials of a company. Income statement, statement of retained earnings, balance sheet and cash flow statement are included in financial statements. These are prepared to present the financial performance and position of a company.

Notes to Financial Statement: Companies need to inform the policies and concepts, followed to prepare the financial statements. This information is added below the financial statements in the annual reports as notes. These notes are called the notes to financial statement.

Consolidated Income Statement: The income statement in which the combined revenues and expenses of parent company and all its subsidiaries are reported is called a consolidated income statement. It presents a complete picture of income and expenses of the corporation in an accounting period.

Consolidated Statement of Financial Position: Statement of financial position, usually known as balance sheet represents the value of company’s assets, liabilities and shareholders’ equity at the end of accounting period. When it is prepared for parent company and all its subsidiaries combined, it is called consolidated statement of financial position.

To Identify: The statement that reported the (a) other operating income and expense (b) cash and cash equivalents (c) trade accounts payable and (d) Cost of net financial debt for Company L.

(b)

To determine

To Identify: The statement that reported the (a) other operating income and expense (b) cash and cash equivalents (c) trade accounts payable and (d) Cost of net financial debt for Company L.

(c)

To determine

To Identify: The statement that reported the (a) other operating income and expense (b) cash and cash equivalents (c) trade accounts payable and (d) Cost of net financial debt for Company L.

(d)

To determine

To Identify: Cost of net financial debt for Company L.