The context and purpose of financial reporting

1 The scope and purpose of, financial statements for external reporting

(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.