PAS 1 Presentation of Financial Statements Part 2

Presentation of Deferred taxes

 Deferred taxes : non-current assets, irrespective of their expected dates of reversal

Minimum line items in the statement of financial position

a-f. Non-current assets

a. Property, plant, and equipment (PPE)

b. Investment property
c. Intangible assets
d. Financial assets (excluding amounts shown under e, h, and, i)
e. Investments accounted for using the “equity method”
f. Biological assets

g-j. Current Assets

g. Inventories
h. Trade and other receivables
i. Cash and cash equivalents
j. Assets (or disposal groups) classified as held for sale in accordance with PFRS 5
k. Trade and other payables (Current Liabilities)
l. Provisions (Current Liabilities)
m. Financial liabilities (excluding amounts shown under (k) and (l); (Current/Non-current liabilities)
n. Liabilities and assets for current tax, as defined in PAS 12 Income Taxes (Current/Non-current
liabilities)
o. Deferred tax liabilities and deferred tax assets, as defined in PAS 12 (Non-current)
p. Liabilities included in disposal groups classified as held for sale in accordance with PFRS 5
(Current)
q. Non-controlling interests, presented within equity (Equity)
r. Issued capital and reserves attributable to owners of the parent (Equity)

 PAS 1 DOES NOT PRESCRIBE “the order or format” in which an entity presents items.

Statement of profit or loss and other comprehensive income

 An entity shall present all items of income and expense recognized in a period:
 1. in a SINGLE “STATEMENT of profit or loss and other comprehensive income”
2. in TWO STATEMENTS
 (1) a statement of profit or loss section and,
 (2) a second statement beginning with profit or loss, together with components of
comprehensive income

 In “statement of profit or loss and other comprehensive income, and in notes”, PAS 1 PROHIBITS
the presentation of any items of income or expense as “EXTRAORDINARY ITEMS”.

Other comprehensive income for the period

a. Changes in revaluation surplus

b. Unrealized gains and losses on investments in FVOCI securities
c. Remeasurements of the net defined benfit liability (asset)
d. Gains and losses arising from translating the financial statements of a foreign operation
e. Effective portion of gains and losses on hedging instruments in a cash flow hedge

 OCI may be presented either (A) Net of tax or (B) Gross of tax

Reclassification adjustments: amounts reclassified to profit or loss in the current period that were
recognized in other comprehensive income in the current or previous periods.

- From OCI to…  transferred at Statement of Profit or Loss

TYPE OF OTHER COMPREHENSIVE INCOME SUBJECT TO RECLASSIFICATION ADJUSTMENT?

a. Changes in Revaluation Surplus NO
b. Remeasurements of the net defined benefit NO
liability (asset)
c. Fair value changes in FVOCI
- equity instrument (election) NO
- debt instrument (mandatory) YES
d. Translation differences on foreign operations YES
e. Effective portion of cash flow hedges YES

Total Comprehensive income: comprises all components of:

 1. Profit or loss; and
2. Other comprehensive income

Presentation of Expenses

1. Nature of expense method (classified by nature)

2. Function of expense method (classified by function/type of activity being conducted)

*If an entity classifies EXPENSES BY FUNCTION, it SHALL DISCLOSE additional information on the nature
of expenses

Disclosure of dividends

 Dividends declared by an entity are disclosed either in the (a) NOTES or (b) STATEMENT OF
CHANGES IN EQUITY

Order of presentation of disclosures in the Notes

1. Statement of compliance with PFRSs;

2. Summary of significant accounting policies applied;
3. Supporting information for items presented in the other financial statements; and
4. Other disclosures