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Hello, Hope you are doing ok,
could you please help me define what condensed financial statements are and the explanatory notes that accompany them?Companies may well find that there are people that don’t want the full detail of the company’s activities but would rather have an overview. In that situation the company could prepare condensed financial statements.
As an example, a company would state the revenue achieved for the year as a single, one-line amount without the heavy detail of geographical analysis or the break-down into segments
If you want that level of heavy detail, it’s available within the full traditional set of financial statements but for a very quick overview, the condensed statements may be sufficient
The various statements found in great detail in a traditional set are therefore reduced to a single page each – statements of financial position, profit or loss, cash flows are all presented on a single page
As for the notes, these condensed financial statements are produced at the same time as the full traditional set and explanatory notes are therefore available within that full set
Ok?
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