CertIFR S05-M03-IAS01

CertIFR Course
Module 3 Contents
IAS 1 Presentation of financial statements
IFRS 15 Revenue from contracts with customers
IAS 8 Accounting policies, changes in accounting estimates, and errors

CertIFR Course
IAS 1 : Presentation of financial statements
The objective of general purpose financial statements

to provide information about the financial position, financial performance, and cash
flows of an entity that is useful to a wide range of users in making economic
decisions.
To meet that objective, financial statements provide information about an entity's

Assets. Income and expenses, including gains and losses
Liabilities. Contributions by and distributions to owners.
Equity. Cash flows.
CertIFR Course
A complete set of financial statements should include:
A statement of financial position at the end of the period.

A statement of profit or loss and other comprehensive income for the period.
A statement of changes in equity for the period.
A statement of cash flows for the period.

Notes.
Comparative information.
CertIFR Course
Entities are not required to use the titles listed above in their financial statements (for
example, they may instead use 'old' titles such as balance sheet and income
statement), but all existing Standards and Interpretations reflect the terminology
referred to above.
CertIFR Course

General features of financial statements:
Fair presentation.
financial statements should present fairly the financial position, performance, and
cash flows of an entity.
Going concern.
Financial statements should be prepared on a going concern basis.
Accrual basis.
Financial statements, other than cash flow, should be prepared on the accrual basis.
Materiality and aggregation.

Each material class of similar items should be presented separately. Line items that
are not material individually should be aggregated with other line items..
CertIFR Course

General features of financial statements:
Offsetting.
Assets and liabilities and income and expenses should not be offset unless this is
required or permitted by another IFRS Standard.
Frequency of reporting.
A complete set of financial statements should be prepared at least annually.
Comparative information.
Comparative information should be presented for the preceding period for all
amounts reported in the current year financial statements.
Consistency of presentation.
Consistent presentation should be retained unless a change is required by an IFRS
Standard or another presentation would be more appropriate..
CertIFR Course

Statement of financial position (SOFP)
Certain line items MUST be presented in the statement of financial position. They are:
property, plant and equipment. assets held for sale.
investment property. trade and other payables.
intangible assets. provisions.
financial assets. financial liabilities.
equity accounted investments. current tax amounts.
biological assets. deferred tax amounts.
inventories. liabilities held for sale.
trade and other receivables. non-controlling interests.
cash and cash equivalents. issued capital and reserves.
CertIFR Course

It is necessary to present assets and liabilities on the basis of the distinction between
current items and non-current items
Current items are those:
Expected to be realised/settled in an entity's normal operating cycle. or
Held primarily for the purpose of trading, or
Expected to be realised/due to be settled within 12 months, or
In the case of an asset is unrestricted cash or cash equivalent, or
In the case of a liability has no unconditional right to defer settlement for at
least 12 months.
CertIFR Course

Additional information should be disclosed either in the statement of financial
position or in the notes, for example:
Classes of property, plant and equipment.

Classifications of inventory
Types of provision
Details of classes of share capital
A description of reserves within equity.
CertIFR Course

Statement of profit or loss and other comprehensive income (SPLOCI)
The statement of profit or loss and other comprehensive income may be presented as
one single statement or two separate statements
Minimum disclosure requirements in the profit or loss are as follows:
Revenue. Impairment losses.
Finance costs. Tax expense.
Gains / losses on derecognition of financial assets measured at amortised cost.
Share of profit or loss of associates/joint ventures
Gains/losses on reclassification of financial assets.
Single amount for discontinued operations.
CertIFR Course

Items in OCI are split between those that :
can be reclassified to profit or loss .
cannot be reclassified to profit or loss .

CertIFR Course

Expenses in profit or loss may be analysed using either the 'nature of expense' or the
'function of expense' method. Examples of each are as follows:
CertIFR Course

Statement of changes in equity (SOCIE)
The Statement of changes in equity must include:
total comprehensive income for the period .
for each component of equity the effects of changes in accounting policies and
corrections of errors recognised in accordance with IAS 8
for each component of equity, a reconciliation between the carrying amount at
the beginning and end of the period resulting from
profit or loss
other comprehensive income.
transactions with owners in their capacity as owners. (shares and dividends )
CertIFR Course

Notes to the financial statements
These should:
present information about the basis of preparation and accounting policies.
disclose information required by IFRS Standards that is not disclosed elsewhere.
provide other relevant information not presented elsewhere.

CertIFR Course
quick quiz
1 - Which of the following is not required disclosure under IAS 1?
A : Number of employees
B : Assets held for sale
C : Provision
D : Intangible assets
CertIFR Course
quick quiz
2 - Under IAS 1, how often should financial statements be prepared?
A : At least annually
B : No more than annually
C : As often as the company requires
D : Monthly
CertIFR Course
quick quiz
3 – When is offsetting permitted under IAS 1?
A : Always
B : Never
C : When required or permitted under an IFRS
D : When approved by the board of directors

CertIFR Course
quick quiz
4 – Which of the following is not required in the financial statements under IAS 1?
A : Name of the entity

B : Whether accounts cover a single entity or a group
C : Chairman’s commentary on performance
D : The accounting period

E : Presentation currency
CertIFR Course
quick quiz
5 – Which of the following is not a component of a statement of financial position?
A : Non-current assets
B : Inventories
C : Cost of goods sold
D : Retained earning
E : Deferred tax

CertIFR S05-M03-IAS01

Uploaded by

Copyright:

Available Formats

CertIFR S05-M03-IAS01

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CertIFR S05-M03-IAS01

Uploaded by

Copyright:

Available Formats

CertIFR Course

IAS 1 Presentation of financial statements

IFRS 15 Revenue from contracts with customers

IAS 8 Accounting policies, changes in accounting estimates, and errors

IAS 1 : Presentation of financial statements

The objective of general purpose financial statements

To meet that objective, financial statements provide information about an entity's

IAS 1 : Presentation of financial statements

A complete set of financial statements should include:

A statement of financial position at the end of the period.

A statement of cash flows for the period.

IAS 1 : Presentation of financial statements

IAS 1 : Presentation of financial statements

Materiality and aggregation.

IAS 1 : Presentation of financial statements

IAS 1 : Presentation of financial statements

IAS 1 : Presentation of financial statements

IAS 1 : Presentation of financial statements

Classes of property, plant and equipment.

IAS 1 : Presentation of financial statements

IAS 1 : Presentation of financial statements

Items in OCI are split between those that :

can be reclassified to profit or loss .

cannot be reclassified to profit or loss .

IAS 1 : Presentation of financial statements

IAS 1 : Presentation of financial statements

IAS 1 : Presentation of financial statements

disclose information required by IFRS Standards that is not disclosed elsewhere.

provide other relevant information not presented elsewhere.

D : When approved by the board of directors

A : Name of the entity

D : The accounting period

You might also like