← Company financial statement preparation
Reading the notation
Which statement, which figure, and how the marking schedule scores a blank box — three things worth knowing before you touch a real paper.📖 Terms used across all three questions
6 terms- Contributed equity
- Money shareholders have put into the company — share issues, less repurchases and less issue costs.
- Retained earnings
- Accumulated profit not yet paid out as dividends. Opening + profit for the year − dividends declared.
- Revaluation surplus
- Accumulated UNREALISED gains from revaluing an asset (e.g. land), recognised through other comprehensive income, never through profit.
- OCI
- Other comprehensive income — gains/losses that bypass profit for the year because they are unrealised (e.g. a revaluation gain).
- Carrying amount
- An asset's value on the books: cost (or revalued amount) less accumulated depreciation.
- Present obligation
- The test for whether something is a liability at balance date. A dividend the directors have not yet formally declared is NOT one — it can still be voted down.
Reading a marking schedule's shorthand
- P (process): the right account name(s) and structure, even if the figure is wrong.
- C (correct figure): only awarded on TOP of an earned P — a right number with the wrong stem earns nothing.
- Pt / PT: a correct subtotal or total, judged on structure (right items included, none extra), separate from whether every figure feeding it is correct.
- This is why leaving a box blank is usually the worst option: the stem alone (the account name, without a figure) can still earn a process mark.