CH 3

IAS 1: Presentation of
financial statements
Statement of financial
position
PRESENTATIO Current/Non current
asset distinction
N OF
Statement of
PUBLISHED
Comprehensive income
FINANCIAL
STATEMENTS Income statement
Changes in equity

1. IAS 1 (revised): Presentation of

financial statements
Componentsofoffinancial
financialstatements:
statements:
Components
Statementofoffinancial
financialposition
position
1.1.Statement
StatementofofProfit
ProfitororLoss
Lossand
andother
other
2.2.Statement
comprehensive
income
comprehensive income
Statementofofchanges
changesininequity
equity
3.3.Statement
Statementofofcash
cashflows
flows
4.4.Statement
Notestotothe
thefinancial
financialstatements
statements
5.5.Notes

1.1 Statement of Profit or loss and other

comprehensive income for the period

Include all items of income and

expense in the Statement of P or L
unless a standard or interpretation
requires otherwise.

1.2 How items are disclosed

Some on the face of ..
Some in notes
Recommended formats are
given ..

1.3 Identification of financial

statements
Distinguish financial info from other
info.
IAS 1 also requires disclosure of
following:
o Name of the company
o Whether accounts are for a single
company or group
o Date of the end of the reporting period
o Currency used
o Level of rounding used

1.4 Reporting period

Present financial statements
annually, unless otherwise.

1.5 Timelinessness
Produce accounts in a timely
manner,
IAS 1 requires accounts to be
produced within 6 months of year
end.

2. Statement of financial position

(See projected IAS 1 suggested
format)

Items which must appear on the face

of statement of financial position
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.

Property, plant and equipment

Investment property
Intangible assets
Financial assets
Investments accounted for using equity method
Biological assets
Inventories
Trade and other receivables
Cash and cash equivalents
Assets classified as held for sale

..
k. Trade and other payables
l. Provisions
m. Financial liabilities
n. Current tax liabilities
o. Deferred tax liabilities
p. Liabilities included in disposal groups
q. Non controlling interests
r. Issued capital and reserves

Further sub-classification of items

disclosed
Further sub-classification of above
items should be made either on the
face of statement of financial
position or notes.

3.2 Current assets

Classify as a current asset when:
It is expected to be realized in the
normal course of operation cycle.
Is held primarily for trading purposed
Is cash or cash equivalents

Current liabilities
Classify as a current liability when:
It is expected to be settled in the normal
course of entitys operating cycle.
Due to be settled within twelve months
Entity does not have unconditional right
to defer settlement.

4. Statement of Profit or Loss and

Other Comprehensive Income
Two possible formats: by function or
by nature, either in a Single of Two
Statements.
(See example projected formats)

5.2 Minimum disclosure on the face of

the statement of Profit or Loss
Revenue
Finance costs
Share of profits and losses of
associates or joint ventures
Tax expense
Profit or loss

7. Statement of changes in equity

See IAS 1 example printed for you.

8.Notes to the financial

statements
Notes aim to:
Provide info on basis on which the f/s
were prepared
Disclose any info not shown anywhere in
the f/s
Show additional info relevant to the
understanding of the f/s.

Other disclosures
What the entity does
Ultimate holding company
Domicile and legal form

IFRS Suggested order for

notes
1. Statement of Compliance with IFRS
2. Statement of the Measurement
Basis
3. Supporting Information for Items
Presented in each Statement.
4. Other disclosures, ie
1. Contingencies and Other Financial
Disclosures
2. Non Financial Disclosures

..
Class discussion on Wilson and Co.