‘rt0722, 12:00 PM AUD NOTES (January 10, 2022) m FAR > IAS 1: PRESENTATION OF FINANCIAL STATEMENTS Show source Show tags * PAS 1GOAL/OBJECTIVE J * prescribe basis for the presentation of general purpose financial statements, guideline for structure, and minimum reqs for content ensure comparability. * OVERALL CONSIDERATIONS (FGAPMOC) V 1. Fair presentation and compliance with IFRS * PAS 1 requires entity who comply with PFRS to make an explicit and unreserved statement of such compliance that they complied wi ALL requirements of PFRSs * PAS 1 allows departure if the regulatory framework requires or allows such. 2. Going Concern * EXCEPT when 1. Entity enters liquidation 2. Ceased trading 3. There is an indication that entity is not a going concern 3. Accrual Basis of accounting + EXCEPT Statement of Cash Flows 4, Presentation Consistency * Retain the presentation and classification from one period to the next 5, Materiality and Aggregation htpsswww-remnote.comwi6148882882ec840034bdb84b/SXNnSJKSmKPMEIKEK 18‘rt0722, 12:00 PM AUD NOTES (January 10, 2022) * each MATERIAL class of similar items is presented separately * dissimilar items are presented separately unless they are immaterial, 6. Offsetting * No offset offset or they slap u * UNLESS permitted or required by PFRS * Example: IAS 32 7. Comparative Information * FINANCIAL STATEMENTS > structured representation of an entity's financial position and results of its operations" (PAS 1.9) * General Purpose Financial Statements + cater to most of the common needs of a wide range of external users * Purpose of FS: 1. Primary Objective > provide info about the financial position, financial performance, and cash flow of an entity that is useful to wide range of users for their decision making 2. Secondary Objective > show the results of the management's stewardship over entity's resources. * Complete Set of FS 1, Statement of Financial Position 2. Statement of profit or loss and comprehensive income for the period 3, Statement of changes in equity 4, Statement of cash flows 5. Notes to the Financial Statements 6. Additional statement of financial position (required ONLY WHEN CERTAIN STUFF HAPPENS) * MANAGEMENT'S RESPONSIBILITY OVER FINANCIAL STATMENTS 1. prep and fair presentation of FS in accordance with PFRS 2. internal control over financial reporting htpsswww-remnote.comwi6148882882ec840034bdb84b/SXNnSJKSmKPMEIKEK 216‘rt0722, 12:00 PM AUD NOTES (January 10, 2022) © STATEMENT OF FINANCIAL POSITION * Manners of Presentation * Classified Manner ~ current items are separated from noncurrent ones * Unclassified Manner > arranged based on liquidity * Mostly used by banks * PAS 1 allows mixed presentation; appropriate when entity has diverse operations * Current Assets ¥ 1. expected to be realized, sold, or consumed within the entity's normal operating cycle 2. held primarily for trading 3. expected to be realized within 12 months 4. cash or cash equivalents * Current Liabs J 1. expected to be settled within normal operating cycle 2. held primarily for trading 3. due within 12 months 4. entity does not have right at the end of the reporting period to defer settlement of liab for at least 12 months * AMENDMENTS: classifications of liabs as current or non current ONLY AFFECTS PRESNETATION OF LIABS IN SFP, NOT the amount of timing * Info required to be presented on the face of the SFP htpsswww-remnote.comwi6148882882ec840034bdb84b/SXNnSJKSmKPMEIKEK 36‘rt0722, 12:00 PM AUD NOTES (January 10, 2022) * The line items to be included on the face of the statement of financial positiot (a) property, plant and equipment (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) inventories (h) trade and other receivables (i) cash and cash equivalents () assets held for sale (k) trade and other payables (I) provisions (m)financial liabilities (excluding amounts shown under (k) and (I)) (n) current tax liabilities and current tax assets, as defined in |AS 12 (0) deferred tax liabilities and deferred tax assets, as defined in |AS 12 (p) liabilities included in disposal groups (q) non-controlling interests, presented within equity (r) issued capital and reserves attributable to owners of the parent. + STATEMENT OF COMPREHENSIVE INCOME + Number of Statements 1. Single Statement * Statement of Profit or loss and Other Comprehensive Income 2. Two statements > (1) statement of profit or loss and (2) statement of presenting comprehensive income * Profit or Loss * Income and expenses are usually recognized in profit or loss unless ¥ 1. items of OCI 2. Required by other PFRS to be recognized outside of profit or loss htpsswww-remnote.comwi6148882882ec840034bdb84b/SXNnSJKSmKPMEIKEK 46‘rt0722, 12:00 PM AUD NOTES (January 10, 2022) * Presentation of Expenses (CHOOSE ONLY ONE) ¥ 1, Nature of Expense Method -> expenses are aggregated according to their nature * simpler to apply 2. Function of Expense Method ~ (Cost of Sales method) expenses are classified according to function; cost of sales are presented separately from other expenses * additional disclosures on nature of expenses must be there * this is like the ones we see in MAS problems like * Other Comprehensive Income (OC!) * Components 4 1. changes in revaluation surplus 2. remeasurements of net defined benefit liability 3. gains and losses on investments designated or measured at FVOCI 4. gains and losses arising from translating FS of foreign operation * Categorized into these two 1. those that COULD be subsequently reclassified to profit or loss 2. those that CANNOT be re-classified to profit or loss + STATEMENT OF CHANGES IN EQUITY * Required to be presented 4 + STATEMENT OF CASH FLOWS * IAS 7: Statement of Cash Flows + NOTES TO THE FINANCIAL STATEMENTS * all information across other financial statements shall be cross- reference to the notes * Usual structure J 1. General Info of the reporting entity htpsswww-remnote.comwi6148882882ec840034bdb84b/SXNnSJKSmKPMEIKEK 56‘rt0722, 12:00 PM AUD NOTES (January 10, 2022) 2. Statement compliance with the PFRSs and Basis of preparation of financial statements 3. Summary of significant accounting policies 4, Breakdowns of line items 5. Other disclosures required by PFRSs. 6. Other disclosures not required but is deemed relevant. htpsswww-remnote.comwi6148882882ec840034bdb84b/SXNnSJKSmKPMEIKEK a6