PRESENTATION OF

FINANCIAL STATEMENTS
(IAS 1)
IAS 1– Presentation of Financial
Statements
• Objective of IAS 1
The objective of IAS 1 is to prescribe the
basis for presentation of general
purpose financial statements, to
ensure comparability both with the
entity's financial statements of
previous periods and with the financial
statements of other entities.
 Contents:
• It sets out the overall framework and
responsibilities for the presentation of
financial statements,
• guidelines for their structure and
minimum requirements for the content
of the financial statements,
• Standards for recognising, measuring,
and disclosing specific transactions are
addressed in other Standards and
Interpretations.
 Objective of Financial
Statements
is to provide information about:
•   The financial position,
•   Financial performance, and
•    Cash flows of an entity
To meet that objective, financial statements
provide information about an entity's: 
• Assets, Liabilities and Equity.
• Income and expenses, including gains and
losses.
• Cash flows.
Components of Financial
Statements
A complete set of financial statements
should include:
1. a statement of financial position at the end
of the period,
2. a statement of profit or loss and other
comprehensive incomes for the period,
3. a statement of changes in equity for the
period,
4. statement of cash flows for the period,
5. notes, comprising a summary of
accounting policies and other explanatory
notes.
 Structure and Content of
Financial Statements in General

1.Clear Identification In an annual report:

•  the financial statements
•  the reporting enterprise
•  whether the statements are for the
enterprise or for a group
•  the date or period covered
•  the presentation currency
• the level of precision (thousands,
millions, etc.)
2. Reporting Period

• There is a presumption that financial

statements will be prepared at least
annually.
• If the annual reporting period
changes and financial statements
are prepared for a different period,
the entity must disclose the reason
for the change and a warning about
problems of comparability.
 The Statement of Financial
Position

An entity must normally present a

classified SFP, separating
current and noncurrent assets
and liabilities.
 Current Assets Vs Non
Current Assets
Current Assets
• Are cash; cash equivalent;
assets held for sale, or
consumption within the
enterprise's normal operating
cycle;
• or assets held for trading within
the next 12 months.
• All other assets are noncurrent.
Current Libilities Vs Non
Current Libilities
Current Libilities
• Are those to be settled within the
enterprise's normal operating cycle
or due within 12 months,
• or those held for trading, or those for
which the entity does not have an
unconditional right to defer payment
beyond 12 months. Other liabilities
are noncurrent.
Minimum items to be presented on the
face of SFP
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;
Minimum items to be presented on the
face of SFP
j.       Trade and other payables;
k.      Provisions;
l.       Financial liabilities (excluding
amounts shown under (j) and (k));
m.     Liabilities and assets for current tax, as
defined in IAS 12;
n.      Deferred tax liabilities and deferred tax
assets, as defined in IAS 12;
o.      Minority interest, presented within
equity; and
p.      Issued capital and reserves attributable
to equity holders of the parent
Format of the SFP

• Different forms of presentation of

SFP
• Assets can be presented current
then noncurrent, or vice versa, and
liabilities and equity can be
presented current then noncurrent
then equity, or vice versa. A net
asset presentation (assets minus
liabilities) is allowed.
Format of the SFP
• Regarding issued share capital and reserves, the
following disclosures are required:
• numbers of shares authorised, issued and fully
paid, and issued but not fully paid
• par value
• reconciliation of shares outstanding
• description of rights, preferences
• treasury shares, including shares held by
subsidiaries and associates
• shares reserved for issuance under options &
contracts
• a description of the nature & purpose of each
reserve
 Information to be disclosed on the
face of SOPOLAOCI

• Revenues
• Cost of sales
• Financial costs
• Profit/loss of associates and joint ventures
• Tax expense
• Profit and loss from ordinary activities
• Extraordinary items
• Net profit or loss for the period
Information to be disclosed in the
Equity statement

The enterprise should present a separate

component showing the following:
1. Net profit or loss for the period
2. Any gain or loss that is required to be
recognized directly in equity
3. Capital transactions with owners
4. Balances of accumulated profit or losses
5. A reconciliation of equity capital, share
premium and reserves
Notes to the Financial
Statements
The notes must:
• Present information about the basis
of preparation of the financial
statements and the specific
accounting policies used;
• Disclose any information required by
IFRSs that is not presented on the
face of the SFP, SOPOLAOCI,
statement of changes in equity, or
cash flow statement; and
Notes to the Financial
Statements
• Provide additional information
that is not presented on the
face of the SFP, SOPOLAOCI,
statement of changes in equity,
or cash flow statement that is
deemed relevant to an
understanding of any of them.
 Notes to the Financial
Statements
IAS 1 suggests that the notes should
normally be presented in the following
order:
• a statement of compliance with IFRSs;
• a summary of significant accounting
policies applied, including:
• the measurement basis (or bases) used
in preparing the financial statements;
and
• the other accounting policies used.
 Responsibility of
Financial Statements
The board of directors or the
governing body of the enterprise are
responsible for the preparation of
the financial statements.
The financial statements should be
presented at least once in a year.
The financial statements should be
made available to the public within
6-months of reporting date.
 Comparative Figures

2019 2018
Current Assets Current Assets
Non Current Assets Non Current Assets
Current Liabilities Current Liabilities
Long term liabilities Long term liabilities
Equity Equity
Revenues Revenues
Expenses Expenses
 XYZ PLC
STATEMENT OF FINANCIAL POSITION
as at 31 DECEMBER, 2019
#’000 #’000
Assets
Non-current assets
Property, plant and equipment ******
Investments at fair ******
Goodwill ******
Developmental cost ******
Patent right & others ******
TOTAL NON CURRENT ASSET ******
22
CURRENT ASSET #’000 #’000
Inventory ******
Trade Receivables ******
Bank ******
Cash ******
Bill of exchange receivable ******
Government Grant receivable ******
Loan Advanced receivable ******
Prepayments ******
TOTAL CURRENT ASSET ******
TOTAL ASSET ******
23
EQUITY & LIABILITIES #’000 #’000
EQUITY
Ordinary share ******
Share premium ******
Retain earnings ******
Revaluation reserve ******
General reserve ******
Share option *******
TOTAL EQUITY
******
24
LIABILITIES #’000 #’000
NON CURRENT LIABILITIES
Preference share ******
Debenture ******
Long term liabilities ******
Deferred income ******
Contingent liabilities ******
Deferred tax liabilities ******
Leased obligations ******
TOTAL NON CURRENT LIABILITIES ******
25
CURRENT LIABILITIES #’000 #’000
Trade payable ******
Bank overdraft ******
Tax payable ******
Accrual ******
Short time loan ******
TOTAL CURRENT LIABILITIES ******
TOTAL EQUITY & LIABILITIES ******

26
 XYZ PLC SOPOLAOCI
FOR THE YEAR ENDED 31 DEC 2019 #’000
Revenue *******
Cost of sales (w (i)) (*******)
––––––––
Gross profit *******
Distribution costs (*******)
Administrative expenses (*******)
––––––––
Operating Income *******

Investment income *******

Gain on fair value of investments *******

Finance costs (*******)

––––––––
Profit before tax *******
Income tax expense (*******)
––––––––
Profit for the period *******
––––––––
27
OTHER COMPREHENSIVE INCOME; #000
Gain/loss on foreign exchange ******
Revaluation surplus ******
F/V increase in NCA available 4sales ******
Gain/loss on employee benefit ******
Total other comprehensive income ******
Total comprehensive income ******

28
 XYZ PLC
STATEMENT OF CHANGE IN EQUITY
as at 31 December 2019
O/S S/P R/E R/R G/R TOTAL
# # # # # #
Bal b/d *** *** *** *** *** ****
Prior yr adj - - *** - - ****
Movement
Profit for the yr - *** - - ****
Bal b/d *** *** *** *** *** ****
 Assignment

• Check the application of IAS 1

in an annual reports.