Professional Documents
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LECTURE AID
2020
Learning Objectives
• Enumerate and describe the components of a complete set of
financial statements.
• Classify assets and liabilities into current and noncurrent.
• Prepare a statement of financial position.
5. Offsetting - Assets and liabilities, and income and expenses, shall not be offset
unless required or permitted by a PFRS.
• Measuring assets net of valuation allowances, for example, obsolescence
allowances on inventories, allowances for doubtful accounts on receivables, and
accumulated depreciation on property, plant, and equipment are not offsetting.
7. Comparative Information
An entity shall present comparative information in respect of the preceding period
for all amounts reported in the current period’s financial statements, unless other
standards permit or require otherwise.
• Exceptions:
1. Refinancing agreement fully completed on or before the balance
sheet date – non-current liability
2. Refinancing agreement after the balance sheet date but before
the financial statements are authorized for issue – non-current
liability if the refinancing is at the discretion of the entity.