Fsa Question Nation Flour Milles

FINANCIAL REPORTS

The financial reports of the company were prepared based on the International Financial Reporting Standards.

The report included a Statement of Financial Position (Balance Sheet), Statement of Comprehensive Income (Income Statement), Statement of Changes in Shareholders’ Equity and Statement of Cash Flows, followed by twenty-four (24) Notes to the Financial Statement. The relevant note to the financial statement was placed by certain key items within the statements, so as to easy the explanation of the derived figures for these items in the statements.

The Statement of Position is done in order of liquidity (more liquid assets and liabilities first) using the report format. The Statement of Comprehensive Income was done in the multiple-step style of presentation. Comprehensive income is net income plus the period’s change in accumulated other comprehensive income. The Statement of Cash Flows was done using the indirect method to record all the transactions that affect the cash flow.

AUDITOR’S REPORT

2009

The auditors report for 2009 stated that the Independent Auditors had a qualified opinion of the financial presented by the firm. This audit done by PKF Chartered Accountants and Business Advisors was conducted based in international standards namely the International Financial Reporting Standards which required them to perform and audit to obtain assurances whether the financial statements are free from material mistakes. The auditors did take issue with two errors that they found in the 2007-2008 statements that they felt they company treated with incorrectly as it applies to IAS in Note 23 of the financial statements.

The inventory of the company was overstated in 2007 and 2008 by $21.931 million. They treated it as an adjustment to the prior years’ income, yet the auditors based on the information provided felt that it should have been recognized in the current year’s statement of 2009. Also the management in presenting...