PAS 1 Presentation of

Financial Statements
Introduction

PAS 1 prescribes the basis for presentation of

general purpose financial statements, guidelines
for their structure and the minimum requirement to
ensure comparability.
Types of comparability

Intra
Inter
comparability
comparability
(horizontal or
(dimensional) –
inter period) –
different financial
same entity but 1
statements
period to another
Question

What is a general purpose financial statements?

Status of Conceptual Framework
 The conceptual framework is not an standard.
 If there is a conflict between the standard and
the conceptual framework standard will prevail.
General Features of Financial
Statements
Fair presentation and
compliance with PFRS
Going concern

Accrual basis

Materiality and aggregation

Offsetting

Frequency of reporting period

Comparative information

Consistency of presentation
STRUCTURE AND CONTENT OF
FINANCIAL STATEMENTS
1. HEADINGS OF FINANCIAL STATEMENTS
2. MANAGEMENT RESPONSIBILITY
3. STATEMENT OF FINANCIAL POSITION
a. classified b. unclassified
Refinancing Agreement
 long term obligation maturing within 12 months
after reporting date is classified as current
 if the entity has the discretion to refinance on a
long term basis under an existing loan facility it is
non current
 if the refinancing is not at the discretion of the
entity the liability is current.
Liabilities payable on demand
 current
 long term obligation can be payable on demand
as a result of breach of contract
 noncurrent if the lender provides by the end of
the reporting period a grace period ending at
least 12 months after the reporting period
Statement of Profit or Loss and Other
Comprehensive Income
 Single statement
 Two statement
Items not included on profit or loss
Correction of prior • direct adjustment to the balance of RE
period error
Change in accounting • same treatment as correction of prior period error
policy
Other comprehensive • Changes – other comprehensive income
income • Cumulative balance – statement of financial position

Transactions with • Recognized directly in equity

owners
PRESENTATION of Expenses

Nature of Expense Method

Function of Expense Method

OTHER COMPREHENSIVE INCOME
• Changes in revaluation surplus
• Remeasurement of the net defined benefit liability
• gains and losses on investment designated at FVOCI
• gains and losses on translation of a foreign operation
• changes in fv of financial liability designated at FVPL that are
attributable to changes in credit risk
• changes in time value of option
• changes in the value of forward elements
Question

What is total comprehensive income?

Total Comprehensive Income is 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

The sum of profit or loss and other comprehensive

income
Statement of Changes in Equity

 effect of change in accounting policy

 total comprehensive income for the period
 a reconciliation between the beginning balance
and ending balance of profit or loss, other
comprehensive income and transaction with
owners
Statement of Cash Flow (PAS 7)
Notes to Financial Statements

 General information on the reporting entity

 Statement of compliance with the PFRS and basis for
preparation
 Summary of Significant Accounting Policies
 Disaggregation/Breakdown of the line items
 Other disclosures as required by PFRS
 Other disclosure not required by PFRS but the
management deemed it relevant to the understanding of
the FS