Statement of financial position shows the financial position of the entity at particular point in time.

Statement of financial position includes closing balances of all control accounts maintained by the entity. Therefore, it represents the financial position at the end of accounting period.

Income statement is a part of statement of comprehensive income. Income statement including only profit from trading activities as Gross Profit.

Statement of comprehensive income shows the financial performance of the entity for whole accounting period.

Statement of comprehensive income includes all transactions carried out during the accounting period. Therefore, it represents financial performance.

It is necessary to prepare first statement of comprehensive income to work out current year profits for calculating closing balance of retained earnings.

Conventionally statement of comprehensive income is represented before the statement of financial position. Then;

Statement of cash flows

Statement of changes in equity

Notes to the financial statements.

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