Question

a) Describe the general purpose of the statement of comprehensive income. In addition, explain the terms income and expenses as defined by the Conceptual Framework for Financial Reporting.

b) Describe the general purpose of the statement of financial position. In addition, explain the terms asset, liability and equity as defined by the Conceptual Framework for Financial Reporting.

c) Explain the accrual basis of accounting by defining the principles involved. Illustrate your answer by taking the example of the cost of sales adjustment in the statement of comprehensive income.

Assignment Format

1. Write your name clearly on the cover page using the Assignment Cover Form.

2. Your assignment should be type-written and hard copy submission.

3. Spacing 1.5 with font size 12 using Arial script and justified.

4. Include header and footer page number.

5. Include a Reference Page at the end of your assignment.(at least 3 external resources used)

6. There will be penalty for plagiarism.

7. It is advisable to keep a soft copy of your submitted assignment in case of unforeseen circumstances that requires a re-submission of your assignment.