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. |
3.20 What are the different Auditor’s report presentation options and how is the signing Auditor selected?
A A. The Auditor’s report presentation options and how to select the signing Auditor is explained here below:
|
Field
|
Effect on the financial statements
|
| Reference to be made to the FS pages |
Option to refer to FS pages in the 1st paragraph of the report.
|
| Titles of primary documents on 1st paragraph | Option to disclose the names of the primary statements of other comprehensive income, changes in equity and cash flows either in full or in short in the 1st paragraph of the report. |
| Enable carry forward heading | Option to include header in 2nd and subsequent pages of the report. |
| AUDITOR (select from the 3 options defined in INFO store) | Selection between the 3 auditors as defined in the information store. |
| ENGAGEMENT PARTNER details - NAME | Choose the signing partner between the 20 different names of partners entered in the information store. |
| Designation | Enter the designation of the partner signing the report and whether signing on behalf of an entity. |
2.80 What are the different cash flow statement 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
|
| Statement presentation – Either ‘Indirect’ or ‘Direct’ method |
Direct method – the statement starts from ‘Cash flows used in operations’ and is mainly completed manually by the user. Indirect method – the statement starts from ‘Profit/ (loss) before tax’ and is adjusted by profit or loss items on assets and liabilities, working capital changes before arriving at ‘Cash flows used in operations’. This statement is adjusted by the user only for non-cash items.
|
|
Interest expense - (Map numbers “6.T.8. 1” to “6.T.8. 9”)
|
Option to present either before “Net cash flows used in operating activities” or as part of “Cash flows from financing activities” |
|
Rent income – (Map number “3.R.4. 1", "3.R.4. 2", "5.T.4.29" and "5.T.4.30”)
|
“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. |
| Show Cash generated from operations | Option to show this part of the cash flow statement either as part of the main statement or in a separate note cross referenced to the 1st line in the statement. |
| Cash and cash equivalents note | Option to show this note either as the end of the cash flow statement or as part of the notes to the financial statements |
2.90 What is the effect on the financial statements of the selection that the financial statements are either interim or quarterly?
A. Effect of selecting the interim financial statements option:
Title page
Heading becomes “INTERIM FINANCIAL STATEMENTS”
Auditor's Report -
The standard audit report is either skipped or replaced by a “Review report”. The phrase “audited financial statements” becomes “unaudited financial statements” throughout the set and the letter of representations.
Statement of Changes in Equity
The footnote for deemed dividends is skipped.
Notes to the financial statements
1. Accounting policies are hidden and reference is made to IAS34 and the policies used in the prior annual financial statements.
2. Reference is made to the period covered by the financial statements and to the fact that they have not been audited by the external auditors of the entity.
3. Financial risk management note is skipped
4. Long notes and statement of changes in equity are split in two parts. One for the current period and one for the comparative period.
Effect of selecting the no comparatives option:
Wording throughout the set is changed so that no reference is made to comparative period.
Show accounting policies in detail (same as annual accounts)
Available only for interim financial statements - Accounting policies are displayed in full as per annual financial statements.
Source for prior period balance sheet and income statement
This allows the user to change the formula for prior period income statement amounts.
YR1:DISC - Prior year, same month as the current active period
YR1:PERx:DISC – Prior year, prior periods as specified in the Engagement Properties where x represents the period number.
YR1 - Prior year, year to date
For prior year balance sheet to work properly, it is important for Year End Date to be one year after the comparative balance sheet date. For example when preparing half yearly accounts for the period ended 30/6/2015, Year End Date is 31/12/2005 and prior period income statement formula is YR1:PER1:DISC and selections in Engagement properties are the following:
Add extra columns in P&L - entity publishes QUARTERLY ACCOUNTS:
Two extra blank columns are available in the "Income statement" for the user to enter manually the comparative period(s) dates and amounts.
2.91 What is the effect on the financial statements of the selection that this is the FIRST YEAR / comparatives are NOT required?
A. Effect of selecting the comparatives are not required option:
This cheackbox will hide all comparative columns and prior year parts of notes. In addition, all references to comparatives in the document text paragraphs are automatically hidden.
Show opening position in long notes eg PPE
"Long" notes are notes which show thew 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.
2.60 What are the different tax treatment options in the “Entry table” and how do these affect the tax computations?
A. The different options and their effect on the tax computations are explained in the table here below:
|
Option
|
Effect on the financial statements
|
|
Group interest - Map number “6.T.7. 2” |
With this option “Group interest income” is treated either as trading income or as interest and is subject to Defence tax contribution which is the default option |
|
Interest income for investment companies - Map numbers “3.Q.4. 2” and "3.Q.4. 2. 1” |
With this option “Interest income” for investment companies is treated either as trading income which is the default option or as interest and is subject to Defence tax contribution |
|
Stock write off - Map number "5.T.1.16" |
With this option “Stock write off” may be treated as an allowable expense which is the default option or as a non allowable expense for taxation purposes |
|
Bad debts written off - Map number "5.T.1.17" |
With this option “Bad debts written off” may be treated as an allowable expense which is the default option or as a non allowable expense for taxation purposes |
|
Social cohesion fund - Map numbers "4.R.1. 16", "4.R.3. 5", "4.R.5.17", "4.R.6.17", "4.R.7.17", "5.T.1. 4" and "5.T.2. 8" |
With this option “Social cohesion fund contribution” may be treated as an allowable expense or as a non-allowable expense for taxation purposes. For tax years up to 2011 the default option is to treat this expense as non-allowable and there after the default option is to treat it as allowable. |
|
Unrealised exchange difference - Map number "5.T.1.16" |
With this option “Unrealised exchange difference” may be treated as an allowable expense or as a non allowable expense for taxation purposes which is the default option |
| Accounting period NOT coinciding with calendar year | This checkbox is selected when the accounting period is for a year not ending 31 December and enables a special apportionment section in the tax computation schedule where the user may allocate the taxable profits/losses of the accounting period to the relevant calendar years of assessment. This automatically updates the tax reconciliation part of the “Taxation” note to the financial statements and the tax losses calculation cross referenced to the same note. |
| Accounting period exceeding 12 months | This checkbox is selected when the accounting period is in excess of 12 months ending 31 December and enables a special apportionment section in the tax computation schedule where the user may allocate the taxable profits/losses of the accounting period to the relevant calendar years of assessment. |
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