IAS- Presentation of Financial Statements

Overview Components Objectives Features Structure Disclosures Future changes

Overview
IAS 1 sets out the content, structure and key presentational considerations for GENERAL PURPOSE financial statements.

IAS 1 do not apply to interim financial statements prepared in accordance with IAS 34 Interim Financial Reporting.

It also applies to financial statements which are prepared on non-profit basis.

Questionnaire 1
When we see serial number of IAS, some IAS are missing like IAS 3, IAS 4, IAS 5, IAS 6, IAS 9, IAS 13, IAS 15, IAS 22, IAS 25, IAS 26, IAS 29, IAS 30, IAS 35. Where these Standards gone? Why these are removed?

Answer 1
Every year there are some changes in International accounting standards. To give the effect of these changes, all these missing IAS have been merged with other standards.

In context with IAS 1 :IAS is revised by including three standardsIAS 1- Disclosure of Accounting policies IAS 5- Information to be disclosed in Financial Statements IAS 13- Presentation of current assets and liabilities

COMPONENTS
Financial statements must present fairly The financial position, Financial performance; and Cash flows of an entity. Notes, being a summary of significant accounting policies and other explanatory notes.

Questionnaire 2
There are few questions in this respect What statements are prepared to show FINANCIAL PERFORMANCE of an entity?

What do you understand by comprehensive income?

Why statement of changes in equity is prepared?

Answer 2
Statements prepared to show financial performance Income Statement Statement of changes in equity

Comprehensive income- Income other than owners equity.

Statement of changes in EquityAll changes in Equity arising from transactions with owners in their capacity as owners.

OBJECTIVES
Comparability with previous years Financial Statements

Comparability with Financial Statements of other entities To aggregate information in financial statements on the basis of shared characteristics

Reporting Comprehensive income

FEATURES
Presentation of financial presentations is presumed to occur with the application of IFRS. An entity may only depart from the requirements of an IFRS where compliance would conflict with the objective of providing information useful to users in making economic decisions. Additional disclosures are required when an entity departs from a requirement of an IFRS. Generally the Financial Statements are prepared on the going concern basis; except some reservations. Should be prepared on accrual basis of accounting. Consistency of presentation & classification from one period to the next. No offset of assets & Liabilities, or income & expenses, unless specifically required or permitted by a standard or interpretation.

STRUCTURE
Should be presented annually. Current & non-current assets and current and noncurrent liabilities are presented as separate classifications on the face of the balance sheet. Additional disclosures are required when an entity changes its balance sheet date or the time period covered by the Financial Statements

DISCLOSURES
Accounting policies applied, including measurement bases used. Judgments' made in applying the accounting policies. Key assumptions about the future. Information that enables users to evaluate its objectives, policies and processes for managing capital. Dividends proposed or declared before the issue of the Financial Statements which have not been recognized in the financial statements. The entitys legal form, domicile, country of incorporation, address of its registered office, the nature of its operations and principal activities and the names of its parent and ultimate parent (if different).

FUTURE CHANGES
The Balance Sheet will be named as The Statement of Financial Position. The Profit & Loss Account will be termed as Statement of Financial Performance. These changes will take affect on or from April 1, 2010.

Thank you
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