ACCOUNTING 3

UNIT 3: IAS 1 PRESENTATION OF FINANCIAL

STATEMENTS

IAS 1: PRESENTATION OF FS
PRIOR KNOWLEDGE/ASSUMED KNOWLEDGE
• General features with the presentation of financial statements
• Structure and content of financial statements
• Objective and Scope
• Purpose of financial statements
• Components of financial statements
• Identification of financial statements
• Differences between statement of comprehensive income
prepared according to nature or function
• Present the statement of changes in equity
• Prepare financial statements
• Integrate the requirements of IAS 1 with other topics.

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IAS 1: PRESENTATION OF FS

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IAS 1 – DETAILED SCHEMATIC SUMMARY

IAS 1
PRESENTATION OF FINANCIAL STATEMENTS

Introduction (par 1–6)

• Objective of IAS 1 Definitions (par 7–8)

 Basis for preparation of general purpose
financial statements NB !!!! – Self Study
 WHY do we need a basis? • General purpose f/s
• Scope • Impracticable
 Preparing general purpose f/s in accordance • IFRSs
with IFRS • Material
 Other IFRS deal with accounting treatment of • Notes
specific transactions and events • Other comprehensive income
 Does not apply to condensed interim f/s • Owners
 Standard uses terminology suitable for profit • Profit or loss
oriented entities
• Reclassification adjustment
 What is general purpose F/S?
• Total comprehensive income

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IAS 1 – DETAILED SCHEMATIC SUMMARY...
IAS 1
PRESENTATION OF FINANCIAL STATEMENTS

Financial statements (par 9–14)

• Purpose of f/s
 Structured representation of the financial position and
financial performance of an entity
 What is the objective of financial statements – Conceptual
Framework
• Complete set of f/s
 Statement of financial position
 Statement of profit or loss and other comprehensive
income
 Statement of changes in equity
 Statement of cash flows
 Notes, accounting policies and explanatory information
 Comparative information

IAS 1 – DETAILED SCHEMATIC SUMMARY...

IAS 1
PRESENTATION OF FINANCIAL STATEMENTS

Structure and content (par 47–138)

General features (par 15–46)
• Fair presentation and compliance
with IFRSs
• Going concern
• Accrual basis of accounting
• Materiality and aggregation
• Offsetting
• Frequency of reporting
• Comparative information
• Consistency of presentation
• Introduction
• Identification
 An entity shall clearly identify the f/s and distinguish
them from other information in the same published
document
• Statement of financial position, statement of
profit or loss and other comprehensive income
and statement of changes in equity
 Formats, content
• Statement of cash flows
• Notes
 basis of preparation and accounting policies and
measurement basis.
 information required by the IFRS that is not presented
elsewhere in the f/s
 information not presented elsewhere, relevant to
understanding of f/s

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 IAS 1: PRESENTATION OF FS
General features: Fair Presentation and Compliance with IFRS

F/S shall present fairly

financial position performance cash flows

• make explicit and unreserved statement of such compliance in

the notes.
• An entity shall not describe the f/s as complying with IFRS unless
they comply with all the requirements of IFRS
• Inappropriate accounting policies cannot be rectified by
disclosure or notes or explanatory material

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