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FAIR PRESENTATION

Fair presentation requires an entity:


To select and apply accounting policies in accordance with
PFRS
To present information, including accounting policies, in a
manner that provides relevant and faithfully represented
financial information
To provide additional disclosures necessary for the users to
understand the entitys financial statements.
DEPARTURE FROM STANDARD

DISCLOSURES REQUIRED:
The management has concluded that the financial statements present fairly
the financial position, financial performance and cash flows of the entity.
That the entity has complied with applicable standards except that it has
departed from a particular requirement to achieve a fair presentation
The title of the standard from which the entity has departed, the nature of the
departure, including the treatment that the standard would require, the
reason why that treatment would be so misleading and the treatment adopted
For each period presented, the financial impact of the departure on each item
in the financial statements that would have been reported in complying with
the requirement.
GOING CONCERN
Going concern means that the accounting entity is
viewed as continuing in operation indefinitely in the
absence of evidence to the contrary.
In making assessment about the going concern
assumption, management shall take into account all
available information about the future which is at
least twelve months from the end of reporting period
ACCRUAL BASIS
Assets are recognized when they are receivable rather than
when physically received.
Liabilities are recognized when they are payable rather than
when actually paid.
Income is recognized when earned regardless of when
received.
Expense is recognized when incurred regardless of when it is
paid.
MATERIALITY AND AGGREGATION

FACTORS:
Relative size of the item in relation to the total of the group
to which the item belongs.
Nature of the item An item may be inherently material
because by its very nature it affects economic decision.
OFFSETTING
Items of income and expense should be offset
when and only :
PFRS permitted or requires it.
Gains, losses and expenses arising from the same or similar
transaction and events are not material. Such amount should
be aggregated and presented on a net basis when this
presentation best reflects the substance of the transaction or
group of similar transaction.
EXAMPLES OF OFFSETTING
Gains and losses on disposal of noncurrent assets are reported
by deducting from the proceeds the carrying amount of the
assets and the related selling expenses.
Expenditure related to a provision and reimburse under a
contractual arrangement with a third party may be netted
against the related reimbursement.
Gains and losses arising from a group of similar transaction are
reported on a net basis.
FREQUENCY OF REPORTING
DISCLOSURES REQUIRED IN CHANGE IN REPORTING:
The period covered by the financial statements.
The reason for using a longer or shorter period.
The fact that amounts presented in the financial
statements are not entirely comparable.
COMPARABLE INFORMATION
The financial statements of the current
period shall be presented with comparative
figures of the financial statements of the
immediately preceding year.
THIRD STATEMENT OF FINANCIAL POSITION
A third statement of financial position is required when an entity:
a. Applies an accounting policy retrospectively.
b. Makes retrospective restatement of items in the financial statements.
c. Reclassifies items in the financial statements.
Under these circumstances, an entity shall present three statements of financial
position as at:
1. The end of the current period
2. The end of the previous period
3. The beginning of the earliest companies period
CONSISTENCY OF PRESENTATION
the accounting methods and practices shall be applied on a
uniform basis from period to period

A change in presentation and classification is allowed:


When it is required by another PFRS
When a significant change in the nature of the operations of the
entity will demonstrate a more appropriate revised presentation and
classification.
IDENTIFICATION OF FINANCIAL STATEMENTS
The name of the reporting entity.
Whether the financial statements cover the individual entity or a
group of entities.
The end of the reporting period or the period covered by the
financial statements or notes
The presentation currency
The level of rounding used in the amounts in the financial statements