ias 1 presentation 3[1]

7/31/2019 IAS 1 Presentation 3[1]

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IAS- Presentation of Financial

Statements

Overview

Components

Objectives Features

Structure

Disclosures Future changes


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Overview

IAS 1 sets out the content, structure and key presentationalconsiderations for GENERAL PURPOSE financialstatements.

IAS 1 do not applyto interim financial statements prepared inaccordance with IAS 34 Interim Financial Reporting.

It also applies to financial statements which are prepared onnon-profit basis.


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Questionnaire 1

When we see serial number of IAS, some IASare missing like IAS 3, IAS 4, IAS 5, IAS 6,

IAS 9, IAS 13, IAS 15, IAS 22, IAS 25, IAS26, IAS 29, IAS 30, IAS 35. Where theseStandards gone? Why these are removed?


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Answer 1

Every year there are some changes in International accountingstandards. To give the effect of these changes, all these missing

IAS have been merged with other standards.

In context with IAS 1 :-

IAS is revised by including three standards-

IAS 1- Disclosure of Accounting policies

IAS 5- Information to be disclosed in FinancialStatements

IAS 13- Presentation of current assets and

liabilities


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COMPONENTS

Financial statements must present fairly-

The financial position,

Financial performance; and Cash flows of an entity.

Notes, being a summary of significant accounting policies and

other explanatory notes.


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Questionnaire 2

There are few questions in this respect-

What statements are prepared to show FINANCIALPERFORMANCE of an entity?

What do you understand by comprehensive income?

Why statement of changes in equity is prepared?


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Answer 2

Statements prepared to show financial performance-

Income Statement

Statement of changes in equity

Statement of changes in Equity-

All changes in Equity arising from transactions with owners in

their capacity as owners.

Comprehensive income- Income other than owners equity.


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OBJECTIVES

Comparability with previous years Financial Statements

Comparability with Financial Statements of other entities

To aggregate information in financial statements on the basis

of shared characteristics

Reporting Comprehensive income


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FEATURES

Presentation of financial presentations is presumed to occur with

the application of IFRS. An entity may only depart from the requirements of an IFRS

where compliance would conflict with the objective of providinginformation useful to users in making economic decisions.

Additional disclosures are required when an entity departs from arequirement of an IFRS.

Generally the Financial Statements are prepared on the goingconcern basis; except some reservations.

Should be prepared on accrual basis of accounting.

Consistency of presentation & classification from one period tothe next.

No offset of assets & Liabilities, or income & expenses, unlessspecifically required or permitted by a standard or interpretation.


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STRUCTURE

Should be presented annually.

Current & non-current assets and current and non-

current liabilities are presented as separateclassifications on the face of the balance sheet.

Additional disclosures are required when an entitychanges its balance sheet date or the time period

covered by the Financial Statements


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DISCLOSURES

Accounting policies applied, including measurementbases used.

Judgments' made in applying the accounting policies.

Key assumptions about the future.

Information that enables users to evaluate itsobjectives, policies and processes for managing capital.

Dividends proposed or declared before the issue of theFinancial Statements which have not been recognized

in the financial statements. The entitys legal form, domicile, country of

incorporation, address of its registered office, thenature of its operations and principal activities and the

names of its parent and ultimate parent (if different).


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FUTURE CHANGES

The Balance Sheet will be named as The

Statement of Financial Position.

The Profit & Loss Account will be termed as

Statement of Financial Performance.

These changes will take affect on or fromApril 1, 2010.


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Thank you

Have a nice week-end !!

I will not say I failed 1,000 times, Iwill say that I discovered there are

1,000 ways that can cause failure !!

ias 1 presentation 3[1]

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