IFRS – IFRS IAS 1 Presentation of financial statements
IFRS IAS 1 Presentation of financial statements: International Financial Reporting Standards (IFRS) is a set of accounting standards developed by an independent, not-for-profit organisation called the International Accounting Standards Board (IASB).
IFSR Provides global framework for should companies prepare and disclose their financial statements. All the general guidelines for preparation of financial statements are provided in IFRS.
IFRS provides international standards, having an international standard is very much important for the company. A single set of world wide standard will simply accounting procedure for a company to use one reporting language. Investors and auditors will also be provided with cohesive view of finance.
IFRS IAS 1 Presentation of financial statements: IAS 1 “Presentation of Financial Statements”
- -Purpose and application of the standard.
- Components of financial statements, including Report on Equity.
- Confidence in reporting and compliance with IFRS.
- Presentation of Financial Statements.
IFRS IAS 1 Presentation of financial statements: IAS 1 also elaborates on the following features of the financial statements:
- fairly presented and compliant with IFRS.
- prepared on a going concern basis.
- prepared using the accrual basis of accounting.
- has material classes presented separately.
- does not offset assets and liabilities.
- prepared at least annually.
- includes comparison with previous periods.
- presented consistently across periods.
IFRS IAS 1 Presentation of financial statements
This Standard prescribes the basis for presentation of general purpose financial statements to ensure comparability both with the entity’s financial statements of previous periods and with the financial statements of other entities. It sets out overall requirements for the presentation of financial statements, guidelines for their structure and minimum requirements for their content. A complete set of financial statements comprises:
(a) a statement of financial position as at the end of the period.
(b) a statement of profit and loss and other comprehensive income for the period.
(c) a statement of changes in equity for the period.
(d) a statement of cash flows for the period.
(e) notes, comprising a summary of significant accounting policies and other explanatory information.
(f) a statement of financial position as at the beginning of the earliest comparative period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements.
IFRS IAS 1 Presentation of financial statements: An entity whose financial statements comply with IFRSs shall make an explicit and unreserved statement of such compliance in the notes. An entity shall not describe financial statements as complying with IFRSs unless they comply with all the requirements of IFRSs. The application of IFRSs, with additional disclosure when necessary, is presumed to result in financial statements that achieve a fair presentation. When preparing financial statements, management shall make an assessment of an entity’s ability to continue as a going concern.
IFRS IAS 1 Presentation of financial statements :An entity shall prepare financial statements on a going concern basis unless management either intends to liquidate the entity or to cease trading, or has no realistic alternative but to do so. When management is aware, in making its assessment, of material uncertainties related to events or conditions that may cast significant doubt upon the entity’s ability to continue as a going concern, the entity shall disclose those uncertainties. An entity shall present separately each material class of similar items.
IFRS IAS 1 Presentation of financial statements: An entity shall present separately items of a dissimilar nature or function unless they are immaterial. An entity shall not offset assets and liabilities or income and expenses, unless required or permitted by an IFRS. An entity shall present a complete set of financial statements (including comparative information) at least annually. Except when IFRSs permit or require otherwise, an entity shall disclose comparative information in respect of the previous period for all amounts reported in the current period’s financial statements.
IFRS IAS 1 Presentation of financial statements: An entity shall include comparative information for narrative and descriptive information when it is relevant to an understanding of the current period’s financial statements. When the entity changes the presentation or classification of items in its financial statements, the entity shall reclassify comparative amounts unless reclassification is impracticable.
IFRS IAS 1 Presentation of financial statements: An entity shall clearly identify the financial statements and distinguish them from other information in the same published document. An entity may present a single statement of profit or loss and other comprehensive income, with profit or loss and other comprehensive income presented in two sections. The sections shall be presented together, with the profit or loss section presented first followed directly by the other comprehensive income section.
IFRS IAS 1 Presentation of financial statements: An entity may present the profit or loss section in a separate statement of profit or loss. If so, the separate statement of profit or loss shall immediately precede the statement presenting comprehensive income, which shall begin with profit or loss. The other comprehensive income section shall present line items for amounts of other comprehensive income in the period, classified by nature (including share of the other comprehensive income of associates and joint ventures accounted for using the equity method and grouped into those that, in accordance with other IFRSs :
(a) will not be reclassified subsequently to profit or loss.
(b) will be reclassified subsequently to profit or loss when specific conditions are met. An entity shall recognise all items of income and expense in a period in profit or loss unless an IFRS requires or permits otherwise.
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IFRS IAS 1 Presentation of financial statements
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