IND AS 1 : Presentation of Financial statements

Objective & Scope

To set out overall requirements for the presentation of financial statements, guidelines for their structure and minimum requirements for their
content.
Complete set of financial
statements
Comprises of :
(i) a balance sheet
(ii) a statement of P & L
(iii ) statement of changes in
equity
(iv) a statement of cash flows
(v) Notes
(vi) Opening b/s only when an
accounting policy has been
applied retrospectively or
retrospective restatement or
reclassification of items in its
financial statements is made
Financial statements
General Features
Presentation of true & fair view & * Faithful representation of the effects of transactions set out
compliance with Ind AS in the frame work.
* Explicit and unresrved statement of such compliance in the
notes.
* Inappropriate accounting policies are not rectified either by
disclosure of the accounting policies used or notes or
explanatory material.
* In the extremely rare circumstances,departure from the
requirement of Ind As is needed to achieve fair representation
subject to relevant regulatory framework with appropriate
Going Concern Financial statements are prepared 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.
Accural Basis * except cash flow statmt,f.sts should be prepared using
accrual basis of accounting.
Materiality & Aggregations * Each material class of similar & disimilar items should be
presented seperately unless immaterial except when required
by law
Offsettling * An entity should not offset assets & liabilities or income &
exp, unless required by Ind AS.
Frequency of reporting * Atleast annually.
* When an entity changes & presents f.Stats for a period longer
or shorter tha one year,it shud disclose:
(a) the reason , and
(b) the fact

Comparative Info * Present preceeding period's comparative information

Consistency of presentation
* Presentation & classiication of items in the F.sts should be
retained from one period to next unless:
* (a) significant change in the nature of the entity's opereations
or
* (b) an Ind AS requires a change in presentation.

Structure and Content

Identification of the financial statement:
An entity should clearly identify each f.st and the notes.Also, it should display the following information prominently:
(a) the name of the company
(b) Whether the f.stmts are of an indivial entity or group of entities
(c) The B/S date or the reporting period covered
(d) the level of rounding used.

Minimum line item
requirments:
(a) PPE
(b) Investmt propty
(c) Intangible asset
(d) Financial assets
(e) investmt a/cd for using eqty
mtd
(f) biological assets
(g) inventories
(h) Trade & other receivables
(i) cash & cash equivalents
(j) total of assets clasified as
held for sale(inc disposal
groups)
(k) Trade & other payables
(l) Provisions
(m) Financial liabilities
Balance Sheet
Current Assets:
* Expected to be received in normal operating
cycle.
* Held primarily for trading
* Expected to be realised within 12 months
* Cash & cash equivalents.
Current Liabilities:
* Expected to be settled in normal operating
cycle.
* Held primarily for trading
* Due to be settled within 12 months
* The entity doesn’t have an unconditional
right to defer settlement of the liab for atleast (vii) shares reserved for issue under options and contracts and
12 months
All other liab to be clasified as non current.
Share Capital:
Disclose the following in the B/S or the stat of changes in equity
or in the notes:
(a) For each class of share capital
(i) No of shares authorised
(ii) the no of shares issued & fully paid, and issed but not fully
paid.
(iii) par value per share or that the shares have no par value.
(iv) a reconciliation of the no of shares outstanding at the
begining and end of the period.
(v) the rights,preferences and restrictions.
(vi) Treasury shares or shares held by its subsidiaries or
associates and
(b) a description of the nuture and purpose of each reserve
within equity.
(e) investmt a/cd for using eqty
mtd
(f) biological assets
(g) inventories
(h) Trade & other receivables
(i) cash & cash equivalents
(j) total of assets clasified as
held for sale(inc disposal
groups)
(k) Trade & other payables
(l) Provisions
(m) Financial liabilities
Current Liabilities:
* Expected to be settled in normal operating
cycle.
* Held primarily for trading
* Due to be settled within 12 months
* The entity doesn’t have an unconditional
right to defer settlement of the liab for atleast
12 months
All other liab to be clasified as non current.
paid.
(iii) par value per share or that the shares have no par value.
(iv) a reconciliation of the no of shares outstanding at the
begining and end of the period.
(v) the rights,preferences and restrictions.
(vi) Treasury shares or shares held by its subsidiaries or
associates and
(vii) shares reserved for issue under options and contracts and
(b) a description of the nuture and purpose of each reserve
within equity.

Statement of comprehensive Income

Statement of Profit & Loss
* Revenue
* Gains & losses arising frm the dercognition of f.assets.
* Finance cost
* Impairment losses
* Share of profit or loss of associate or j. venture by equity method.
* Tax expense
Components of OCI include:
1.Changes in revaluation surplus
2.rmeasurement of defined efefit plans
3.gains & losses arising frm translating the f.statements of foreign operation
4.gains & losses frm investms in equity instruements designated at FV thru OCI
5.effective portion of gains & losses on hedging instruements in a cash flow hedge &
6.gians & losses on financial assets measured at FV thru OCI
7.the amt of change in FV that is attributable to changes in the liability credit risk
8.changes in the value of time value of options,time value of an option contract &
9.changes in the value of the forward elements for forward contracts
Information to be presented in the OCI section:
present line items for mats of OCI in the period,classified by nature(including share of the OCI of associates and J ventures accounted for using
the equity metyhod) & grouped into thoose that ,in accordance wit hother Ind As:
(a)will not be classified sunsequently to P or L and
(b) will be classified subsequently to P or L when specific conditions are met.
Statement of changes in Equity:
The following shud be disclosed
(a) Total comprehensive income for the period showing seperatly the total amt due to parent & to the NCI
(b) For each component of equity,the effects of retrospective application or retrospective restatement.
(c)For each component of equity a reconciliation btwn the carrying amt at the start and at the end of the period.
Notes :
The notes shud be presented in a systematic way & cross refernced
the following is the order:
(a) statment of complianc with Ind AS
(b) Summary of significant accounting policies applied
(c) Supporting information for financial sts in the order in which each statement & each line item presented
(d) Other disclosures including contingent liabilities & non fictional disclosures