Checklist Financial Reporting Framework

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{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

Introduction and Scope

This Financial Reporting Framework Checklist is to be used for the preparation and review of financial statements for the period ending {{reporting_period_end_date}}.

The scope of this checklist covers key areas of financial reporting, including adherence to International Financial Reporting Standards (IFRS) or relevant local accounting standards (e.g., SA GAAP, Kenyan GAAP), internal controls, and regulatory disclosures.

General Ledger and Trial Balance Review

__1. All transactions for the period {{reporting_period_start_date}} to {{reporting_period_end_date}} are accurately recorded in the general ledger.

__2. Bank reconciliations are prepared and reviewed for all bank accounts as of {{reporting_period_end_date}}.

__3. Subsidiary ledgers (e.g., accounts receivable, accounts payable, inventory) reconcile to the general ledger control accounts.

__4. The trial balance is balanced and all accounts have appropriate balances (e.g., no credit balances for assets, no debit balances for liabilities unless properly classified).

Revenue Recognition

__1. Revenue is recognized in accordance with {{accounting_standard_for_revenue}} (e.g., IFRS 15 or local equivalent).

__2. All sales invoices are properly recorded and matched with delivered goods/services.

__3. Unearned revenue is appropriately recognized and deferred where applicable.

__4. Sales returns and allowances are properly accounted for.

Expense Recognition and Accruals

__1. Expenses are recognized in the period they are incurred, in accordance with the matching principle.

__2. All significant expenses have been accrued as of {{reporting_period_end_date}} (e.g., utilities, salaries, rent).

__3. Prepaid expenses are appropriately recorded and amortized over their respective periods.

__4. Fixed asset depreciation and amortization have been calculated and recorded correctly based on established policies.

Balance Sheet Accounts Review

__1. Cash and cash equivalents balances are verified through bank confirmations and reconciliations.

__2. Accounts receivable are reviewed for collectability, and an adequate allowance for doubtful accounts is established.

__3. Inventory quantities are verified through physical counts and valued using an appropriate method (e.g., FIFO, weighted-average).

__4. Property, plant, and equipment (PPE) additions, disposals, and revaluations are properly recorded.

__5. Accounts payable balances are supported by vendor statements and purchase invoices.

__6. Debt obligations are accurately recorded, and interest payable is properly accrued.

Statement of Cash Flows

__1. The Statement of Cash Flows is prepared using either the direct or indirect method, consistent with prior periods.

__2. All cash movements are accurately classified into operating, investing, and financing activities.

__3. The net increase/decrease in cash reconciles to the beginning and ending cash balances on the balance sheet.

Disclosures and Notes to the Financial Statements

__1. All required disclosures under {{applicable_accounting_standards}} (e.g., IFRS, local GAAP) are included.

__2. Significant accounting policies are clearly stated and consistently applied.

__3. Contingent liabilities and commitments are appropriately disclosed.

__4. Related party transactions are identified and disclosed.

__5. Events after the reporting period are reviewed and disclosed as necessary.

Internal Control and Compliance Review

__1. Internal controls over financial reporting are operating effectively.

__2. Compliance with relevant tax regulations (e.g., VAT, corporate income tax) is ensured.

__3. Reporting deadlines for regulatory bodies and stakeholders are met.

__4. All necessary approvals for financial transactions and reports have been obtained.

Review and Approval

__1. Financial statements have been reviewed by {{reviewer_name}} on {{review_date}}.

__2. Any review notes or adjustments have been addressed and incorporated.

__3. Financial statements are approved by management and/or the board of directors as of {{approval_date}}.

Signature Block

______________________________

{{preparer_name}}

{{preparer_title}}

Date: {{preparation_date}}

______________________________

{{approver_name}}

{{approver_title}}

Date: {{approval_date}}