IAS-1 Presentation of Financial

Statements
What is IAS?
• An older set of standards stating how particular
types of transactions and other events should be
reflected in financial statements. In the past,
international accounting standards (IAS) were
issued by the Board of the International
Accounting Standard Committee (IASC).

Since 2001, the new set of standards has been

known as the international financial reporting
standards (IFRS) issued by the International
Accounting Standards Board (IASB).
IAS-1 Complete set of financial statements
• Objective
 -basis for presentation of financial statements
 -structure and minimum requirements
 -to ensure comparability
• Scope
 -general purpose annual financial statements
• Purpose of financial statements
 -structured representation of financial
 position, performance and cash flows

IAS-1 Complete set of financial statements
• Components of Financial Statements
1.Statement of Financial position
2.Statement of comprehensive income
3.Statement of changes in equity
4.Statement of cash flows
5.Notes, comprising summary of accounting
policies and other explanatory notes
IAS-1 Overall considerations
• Fair presentation & compliance with IFRS
• Going Concern
• Accrual Basis of Accounting
• Consistency of Presentation
• Materiality and Aggregation
• Offsetting
• Comparative Information
• Reporting Period
IAS-1 Statement of Financial Position
• Minimum obligatory line items
 -property, plant and equipment
 -investment property
 -intangible assets
 -financial assets
 -equity method investments
 -biological assets
 -inventories
 -trade and other receivables
 -cash and cash equivalents
IAS-1 Statement of Financial Position
 -trade and other payables
 -provisions
 -financial liabilities
 -liabilities/assets for current tax
 -deferred tax assets/liabilities
 -minority interest -> in equity
 -issued capital and reserves attributable to
 equity owners of the parent
 X IAS-1 does not prescribe order or format



IAS-1 Statement of Financial Position
• Current vs Noncurrent distinction
• Current Assets
 -realized or consumed in normal course of the
 operating cycle
 -or held for sale
 -or held for trading
 -or realized within 12 months from the date of
 balance sheet
 -cash or cash equivalents
All other assets are noncurrent assets.
IAS-1 Statement of Financial Position
• Current liabilities – realized or settled
 -in normal course of operating cycle
 -or held for trading
 -or 12 months from the balance sheet date
 -or no unconditional right to defer payment for
 more than 12 months on SFP date
 deferred tax liabilities are always noncurrent
IAS-1 Statement of Financial Position
• Equity – on the face of balance sheet/notes
 -no. of shares authorized, issued & fully
 paid/issued but not fully paid
 -reconciliation of opening & closing balances
 -rights, preferences and restrictions
 -treasury stock (self or by subsidiary)
 -shares reserved for options and contracts for
 sale
 -nature and purpose of each reserve

IAS-1 Statement of Comprehensive Income
• All the items of income & expense unless a stand.
Or interp. Requires otherwise

-minimum items on statement of comprehensive income
 -revenue
 -finance costs
 -equity method gains/losses
 -pre tax gain/loss on disposal of assets or settlement
 of liabilities of discontinued operations
 -tax expense
 -profit or loss
IAS-1 Statement of Comprehensive Income


 -disclose the share of profit attributable to minority

interest & equity holders


 -items cannot be presented in either Statement of

comprehensive income( or in income statement, if
separately presented) or in notes as extraordinary items
IAS-1 Statement of Comprehensive Income
• Material => disaggregation's on IS or notes
 -write-down of inventories or PPE to net realizable
 value or reversals
 -disposal of PPE and investments
 -restructuring provisions/reveals
 -discontinued operations
 -other reveals of provisions
• Dividend per share shown on face on IS or notes.
IAS-1 Statement of changes in equity
• All (Statement of changes in equity) or only required on
statement (statement of Recognized Income and
Expense)
 -in statement
 - profit or loss for the period
 - income and expense recognized directly in equity
 - total income and expense for the period-equity
 - holders and to minority interests
 - effect of changes in accounting policies and
 correction of errors
IAS-1 Statement of changes in equity
 -transactions with the owners – distribution shown
 separately
 -movement in retained earnings
 -reconciliation of each class of contributed capital
 and reserves

IAS-1 Statement of Cash Flows
• Cash and cash equivalents in Balance Sheet equals to
Statement of Cash Flows unless restricted from being
exchanged or used
 -short term
 -highly liquid investments that are readily
 convertible to cash(normally 3 months or < )
 -insignificant risk of changes in value
IAS-1 Notes to the Financial Statements
• The notes must
 -show information about basis of preparation of
 financial statements & specify accounting policies

 used
 -disclose information required by IFRS
 -additional information for understanding
IAS-1 Notes to the Financial Statements
• Notes should normally presented in following order
 -Statement of Compliance with IFRSs
 -Summary of significant policies applied
 -measurement basis used in preparing FS
 -accounting policies
 -Supporting information for items shown in Statement of
 Financial Position, Statement of comprehensive income,
 Statement of changes in equity & Statement of Cash Flows,
 in order in which each statement & each line is shown.
 -Other diclosures
 -contingent liabilities & unrecognized contractual commitments
 -non-financial disclosures
 • Disclosure of judgments
• Disclosure of key sources of estimation uncertainty
 -key assumptions about future ->uncertainty
 -significant risk of causing material within next
 financial year
• Additional disclosures
 -dividend declared before authorization date,
 the amount per share
 -preference dividends not recognized



 • If not disclosed elsewhere in information published with
Financial Statement
 -domicile, legal form, country of incorporation
 -address of registered office
 -nature of operations
 -if part of group, name of it’s parent & ultimate
 parent of group
 -if it is a limited life entity, information about
 length of life
 Thanks