IAS 1 — Presentation of Financial Statements

Objective of IAS 1
prescribe the basis for presentation
of general purpose financial
statements,
to ensure comparability both with
the entity's financial statements of
previous periods and with the
financial statements of other entities.

IAS 1 — Presentation of Financial Statements

Objective of IAS 1
IAS 1 sets out the overall requirements for
the presentation of financial statements,
guidelines for their structure and minimum
requirements for their content.

Standards for recognizing, measuring, and

disclosing specific transactions are addressed
in other Standards and Interpretations.

IAS 1 — Presentation of Financial Statements

Scope of IAS 1
IAS 1 applies to all general purpose financial
statements that are prepared and presented
in accordance with International Financial
Reporting Standards (IFRS)

General purpose financial statements are

those intended to serve users who are not in
a position to require financial reports tailored
to their particular information needs.
IAS 1 — Presentation of Financial Statements
Objective of 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.

IAS 1 — Presentation of Financial Statements

Components of financial statements

a statement of financial position (balance

sheet)
a statement of profit or loss and other
comprehensive income
a statement of changes in equity
a statement of cash flows for the period
Notes to financial statements

IAS 1 — Presentation of Financial Statements

Overall consideration for the compliance
with PFRS

IAS 1 — Presentation of Financial Statements

Fair presentation and compliance with
IFRS
faithful representation of the effects of
transactions, other events, and conditions in
accordance with the definitions and
recognition criteria for assets, liabilities,
income and expenses set out in the
Framework.

IAS 1 — Presentation of Financial Statements

Accounting Policies

Management must have an accounting

policies so that the FS complies with the
requirements of each applicable standards
(PFRS)
Information on the FS polices must contain:
Relevance
Reliability

IAS 1 — Presentation of Financial Statements

Accounting Policies

Relevance
Relevant to the decision making needs of users
Reliability
Represent faithfully the results and financial
position
Reflects the economic substances of events
and transactions and not merely of legal form
Are neutral, free from bias
Are prudent
Are complete in all material respects

IAS 1 — Presentation of Financial Statements

Going concern

financial statements are normally prepared

assuming the entity is a going concern and will
continue in operation for the foreseeable
future
IAS 1 requires management to make an
assessment of an entity's ability to continue as
a going concern, otherwise, the uncertainties
must be disclosed

IAS 1 — Presentation of Financial Statements

Accrual basis of accounting

IAS 1 requires that an entity prepare its

financial statements, except for cash flow
information, using the accrual basis of
accounting
Revenue is recognize when earned
Expenses is recorded when incurred
(regardless of the inflow or outflow of cash)

IAS 1 — Presentation of Financial Statements

Consistency of Presentation

The presentation and classification of items in

the financial statements shall be retained from
one period to the next unless:
 significant change in the nature of the
operations
The changes will result in a more appropriate
presentation of events or transactions
If change is required by the IFRS

IAS 1 — Presentation of Financial Statements

Materiality and aggregation

Information is material if omitting, misstating

or obscuring it could reasonably be expected
to influence decisions that the primary users of
general purpose financial statements

IAS 1 — Presentation of Financial Statements

Offsetting

Assets and liabilities, and income and

expenses, may not be offset unless required or
permitted by an IFRS.

IAS 1 — Presentation of Financial Statements

Frequency of Reporting

At least annually

IAS 1 — Presentation of Financial Statements

Comparative information

to be disclosed in respect of the previous

period for all amounts reported in the financial
statements, both on the face of the financial
statements and in the notes
Comparative information is provided for
narrative and descriptive where it is relevant
to understanding the financial statements of
the current period

IAS 1 — Presentation of Financial Statements

Structure and content of financial
statements
IAS 1 requires an entity to clearly identify: [IAS 1.49-51]
the financial statements, which must be distinguished from
other information in a published document
each financial statement and the notes to the financial
statements.
In addition, the following information must be displayed
prominently, and repeated as necessary: [IAS 1.51]
the name of the reporting entity and any change in the name
whether the financial statements are a group of entities or an
individual entity
information about the reporting period
the presentation currency (as defined by IAS 21 The Effects of
Changes in Foreign Exchange Rates)
the level of rounding used (e.g. thousands, millions).

IAS 1 — Presentation of Financial Statements

The line items to be included on the face of the
statement of financial position are: [IAS 1.54]
 (a) property, plant and equipment
 (b) investment property
 (c) intangible assets
 (d) financial assets (excluding amounts shown under (e), (h), and (i))
 (e) investments accounted for using the equity method
 (f) biological assets
 (g) inventories
 (h) trade and other receivables
 (i) cash and cash equivalents
 (j) assets held for sale
 (k) trade and other payables
 (l) provisions
 (m)financial liabilities (excluding amounts shown under (k) and (l))
 (n) current tax liabilities and current tax assets, as defined in IAS 12
 (o) deferred tax liabilities and deferred tax assets, as defined in IAS 12
 (p) liabilities included in disposal groups
 (q) non-controlling interests, presented within equity
 (r) issued capital and reserves attributable to owners of the parent.

IAS 1 — Presentation of Financial Statements

Statement of financial position

Current and non-current classification

Current assets are assets that are: [IAS 1.66]
expected to be realized in the entity's normal
operating cycle
held primarily for the purpose of trading
expected to be realized within 12 months after
the reporting period
cash and cash equivalents (unless restricted).
All other assets are non-current. [IAS 1.66]

IAS 1 — Presentation of Financial Statements

Statement of financial position
Current and non-current classification
Current liabilities are those: [IAS 1.69]
expected to be settled within the entity's normal
operating cycle
held for purpose of trading
due to be settled within 12 months
for which the entity does not have an
unconditional right to defer settlement beyond
12 months (settlement by the issue of equity
instruments does not impact classification).
 Other liabilities are non-current.

IAS 1 — Presentation of Financial Statements

Classifying loans with conditions
A long-term debt is expected to be refinanced under an existing
loan facility, the debt is classified as non-current, even if the
liability would otherwise be due within 12 months. [IAS 1.73]

A liability has become payable on demand because an entity has

breached an undertaking under a long-term loan agreement on
or before the reporting date, the liability is current, even if the
lender has agreed, after the reporting date and before the
authorization of the financial statements for issue, not to demand
payment as a consequence of the breach. [IAS 1.74]

the liability is classified as non-current if the lender agreed by the

reporting date to provide a period of grace ending at least 12
months after the end of the reporting period, within which the
entity can rectify the breach and during which the lender cannot
demand immediate repayment. [IAS 1.75]

IAS 1 — Presentation of Financial Statements

Format of statement

IAS 1 does not prescribe the format of the

statement of financial position. Assets can be
presented current then non-current, or vice
versa, and liabilities and equity can be
presented current then non-current then
equity, or vice versa. A net asset presentation
(assets minus liabilities) is allowed.

IAS 1 — Presentation of Financial Statements

Share capital and reserves
the following disclosures are required: [IAS 1.79]
numbers of shares authorised, issued and fully paid, and
issued but not fully paid
par value (or that shares do not have a par value)
a reconciliation of the number of shares outstanding at
the beginning and the end of the period
description of rights, preferences, and restrictions
treasury shares, including shares held by subsidiaries
and associates
shares reserved for issuance under options and
contracts
a description of the nature and purpose of each reserve
within equity.
IAS 1 — Presentation of Financial Statements
Statement of profit or loss and other
comprehensive income
Concepts of profit or loss and comprehensive income :
Profit or loss is defined as "the total of income less
expenses, excluding the components of other
comprehensive income".
Other comprehensive income is defined as comprising
"items of income and expense (including reclassification
adjustments) that are not recognized in profit or loss as
required or permitted by other IFRSs".
Total comprehensive income is defined as "the change in
equity during a period resulting from transactions and
other events, other than those changes resulting from
transactions with owners in their capacity as owners". [IAS
1.7]

IAS 1 — Presentation of Financial Statements

Examples of items recognized outside of profit or
loss
 Changes in revaluation surplus where the revaluation method is used
under IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets
 Remeasurements of a net defined benefit liability or asset recognized in
accordance with IAS 19 Employee Benefits (2011)
 Exchange differences from translating functional currencies into
presentation currency in accordance with IAS 21 The Effects of Changes
in Foreign Exchange Rates
 Gains and losses on remeasuring available-for-sale financial assets in
accordance with IAS 39 Financial Instruments: Recognition and
Measurement
 The effective portion of gains and losses on hedging instruments in a
cash flow hedge under IAS 39 or IFRS 9 Financial Instruments
 Gains and losses on remeasuring an investment in equity instruments
where the entity has elected to present them in other comprehensive
income in accordance with IFRS 9
 The effects of changes in the credit risk of a financial liability designated
as at fair value through profit and loss under IFRS 9.

IAS 1 — Presentation of Financial Statements

Profit or loss section or statement

revenue
gains and losses from the derecognition of
financial assets measured at amortised cost
finance costs
share of the profit or loss of associates and joint
ventures accounted for using the equity method
certain gains or losses associated with the
reclassification of financial assets
tax expense
a single amount for the total of discontinued
items
IAS 1 — Presentation of Financial Statements
Other Item to disclosed separately either in the statement of
comprehensive income or in the notes, if material

write-downs of inventories to net realizable value or

of property, plant and equipment to recoverable
amount, as well as reversals of such write-downs
restructurings of the activities of an entity and
reversals of any provisions for the costs of
restructuring
disposals of items of property, plant and equipment
disposals of investments
discontinuing operations
litigation settlements
other reversals of provisions

IAS 1 — Presentation of Financial Statements

Statement of cash flows

Basis to assess the ability of the entity to

generate cash and cash equivalents and the
needs of the entity to utilize those cash flows

IAS 1 — Presentation of Financial Statements

Statement of changes in equity

Total comprehensive income for the period

The effect of retrospective application or
retrospective restatement
A reconciliation between the carrying amount
at the beginning and the end of the period

IAS 1 — Presentation of Financial Statements

Notes to Financial Statements

present information about the basis of

preparation of the financial statements and
the specific accounting policies used
disclose any information required by IFRSs
that is not presented elsewhere in the financial
statements and
provide additional information that is not
presented elsewhere in the financial
statements but is relevant to an understanding
of any of them
IAS 1 — Presentation of Financial Statements