Day 1. Purpose Of Financial Reporting

A1. The Scope of Financial Statements

a) Define financial reporting – recording, analysing and summarising financial data.
b) Identify and define types of business entity – sole trader, partnership, limited liability company.
c) Recognise the legal differences between a sole trader, partnership and a limited liability company.
d) Identify the advantages and disadvantages of operating as a limited liability company, sole trader or partnership.
e) Understand the nature, principles and scope of financial reporting.