Financial Statements

Inputs

Require entity, reporting period, comparative period, currency and unit, accounting framework, chart of accounts, trial balance, mapping rules, consolidation scope, and approved adjustments. Identify missing data before preparation.

Procedure

1. Validate that trial balance debits equal credits and opening balances roll forward.
2. Map every account to statement line, cash-flow category, entity, and disclosure group. Flag unmapped and multiply mapped accounts.
3. Apply only supported, approved adjustments; keep original and adjusted trial balances separate.
4. Prepare income statement, balance sheet, cash flow statement, and changes in equity where required.
5. Reconcile net income, retained earnings, cash movement, debt, tax, intercompany, and foreign exchange across statements.
6. Compare to prior period, budget, and forecast; investigate material or unexpected movements.
7. Document accounting judgments, estimates, policy changes, reclassifications, restatements, and presentation limitations.

Cash flow

State whether the direct or indirect method is used. Under the indirect method, reconcile net income through non-cash items and working-capital changes to operating cash flow, then reconcile beginning cash + net change = ending cash.

Output checks

• assets = liabilities + equity;
• statement totals equal the adjusted trial balance;
• current and comparative classifications are consistent;
• signs, units, rounding, currencies, and dates are consistent;
• each line has a source and mapping trail;
• every exception has an owner and disposition.

Label outputs draft until a qualified reviewer completes the applicable approval process.