INTERNATIONAL ACCOUNTING STANDARDS # 1 Presentation of Financial Statements
Overview
IAS
1 Presentation of Financial Statements sets out the overall
requirements for financial statements, including how they should be structured,
the minimum requirements for their content and overriding concepts such as
going concern, the accrual basis of accounting and the current/non-current distinction.
The standard requires a complete set of financial statements to comprise a
statement of financial position, a statement of profit or loss and other
comprehensive income, a statement of changes in equity and a statement of cash
flows.
IAS
1 was reissued in September 2007 and applies to annual periods beginning on or
after 1 January 2009.
History of IAS 1
|
Date
|
Development
|
Comments
|
|
March 1974
|
Exposure Draft E1 Disclosure of Accounting Policies
|
|
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January 1975
|
IAS 1 Disclosure of Accounting Policies issued
|
Operative for periods beginning on or after 1 January 1975
|
|
June 1975
|
Exposure Draft E5 Information to Be Disclosed in
Financial Statements published
|
|
|
October 1976
|
IAS 5 Information to Be Disclosed in Financial
Statements issued
|
Operative for periods beginning on or after 1 January 1975
|
|
July 1978
|
Exposure Draft E14 Current Assets and Current
Liabilities published
|
|
|
November 1979
|
IAS 13 Presentation of Current Assets and Current
Liabilities issued
|
Operative for periods beginning on or after 1 January 1981
|
|
1994
|
IAS 1, IAS 5, and IAS 13 reformatted
|
|
|
July 1996
|
Exposure Draft E53 Presentation of Financial
Statements published
|
|
|
August 1997
|
IAS 1 Presentation of Financial Statements (1997)
issued
(Supersedes IAS 1 (1975), IAS 5, and IAS 13 (1979))
|
Operative for periods beginning on or after 1 July 1998
|
|
IAS 1 Presentation of Financial Statements (2003)
issued
|
Effective for annual periods beginning on or after 1
January 2005
|
|
|
Amended by Amendment to IAS 1 — Capital Disclosures
|
Effective for annual periods beginning on or after 1
January 2007
|
|
|
Exposure Draft Proposed Amendments to IAS 1 – A
Revised Presentation published
|
Comment deadline 17 July 2006
|
|
|
Exposure Draft Financial Instruments Puttable at Fair
Value and Obligations Arising on Liquidation published
|
Comment deadline 23 October 2006
|
|
|
IAS 1 Presentation of Financial Statements (2007)
issued
|
Effective for annual periods beginning on or after 1
January 2009
|
|
|
Amended by Puttable Financial Instruments and
Obligations Arising on Liquidation
|
Effective for annual reporting periods beginning on or
after 1 January 2009
|
|
|
Amended by Annual Improvements to IFRSs 2007 (classification
of derivatives as current or non-current)
|
Effective for annual reporting periods beginning on or
after 1 January 2009
|
|
|
Amended by Improvements to IFRSs 2009 (classification
of liabilities as current)
|
Effective for annual periods beginning on or after 1
January 2010
|
|
|
Amended by Improvements to IFRSs 2010 (clarification of
statement of changes in equity)
|
Effective for annual periods beginning on or after 1
January 2011
|
|
|
Exposure Draft ED/2010/5 Presentation of Items of
Other Comprehensive Income published
|
Comment deadline 30 September 2010
|
|
|
Amended by Presentation of Items of Other
Comprehensive Income
|
Effective for annual periods beginning on or after 1 July
2012
|
|
|
Amended by Annual Improvements 2009-2011 Cycle (comparative
information)
|
Effective for annual periods beginning on or after 1
January 2013
|
|
|
Amended by Disclosure Initiative (Amendments to IAS
1) (project history)
|
Effective for annual periods beginning on or after 1
January 2016
|
Related Interpretations
IAS 1 (2003) superseded SIC-18 Consistency
- Alternative Methods
IFRIC 17 Distributions of Non-cash Assets to
Owners
SIC-27 Evaluating the Substance of Transactions
in the Legal Form of a Lease
SIC-29 Disclosure - Service Concession
Arrangements
Amendments under consideration
Disclosure initiative — Principles of disclosure (research
project)
Disclosure initiative — Materiality (research project)
Summary of IAS 1
Objective of IAS 1
The
objective of IAS 1 (2007) is to 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 sets out the overall requirements for the presentation of
financial statements, guidelines for their structure and minimum requirements
for their content. [IAS 1.1] Standards for recognising, measuring, and
disclosing specific transactions are addressed in other Standards and
Interpretations. [IAS 1.3]
Scope
IAS
1 applies to all general purpose financial statements that are prepared and
presented in accordance with International Financial Reporting Standards
(IFRSs). [IAS 1.2]
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 1.7]
Objective
of financial statements
The
objective of general purpose financial statements is 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: [IAS 1.9]
assets
liabilities
equity
income and expenses, including gains and losses
contributions by and distributions to owners (in their
capacity as owners)
cash flows.
That
information, along with other information in the notes, assists users of
financial statements in predicting the entity's future cash flows and, in
particular, their timing and certainty.
Components
of financial statements
A
complete set of financial statements includes: [IAS 1.10]
a
statement of financial position (balance sheet) at the end of the period
a
statement of profit or loss and other comprehensive income for the period
(presented as a single statement, or by presenting the profit or loss section
in a separate statement of profit or loss, immediately followed by a statement
presenting comprehensive income beginning with profit or loss)
a
statement of changes in equity for the period
a
statement of cash flows for the period
notes,
comprising a summary of significant accounting policies and other explanatory
notes
comparative
information prescribed by the standard.
An
entity may use titles for the statements other than those stated above.
All financial statements are required to be presented with equal prominence.
[IAS 1.10]
When
an entity applies an accounting policy retrospectively or makes a retrospective
restatement of items in its financial statements, or when it reclassifies items
in its financial statements, it must also present a statement of financial
position (balance sheet) as at the beginning of the earliest comparative
period.
Reports
that are presented outside of the financial statements – including financial
reviews by management, environmental reports, and value added statements – are
outside the scope of IFRSs. [IAS 1.14]
Fair
presentation and compliance with IFRSs
The
financial statements must "present fairly" the financial position,
financial performance and cash flows of an entity. Fair presentation requires
the 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. The application of IFRSs, with additional disclosure
when necessary, is presumed to result in financial statements that achieve a
fair presentation. [IAS 1.15]
IAS
1 requires an entity whose financial statements comply with IFRSs to make an
explicit and unreserved statement of such compliance in the notes. Financial
statements cannot be described as complying with IFRSs unless they comply with
all the requirements of IFRSs (which includes International Financial Reporting
Standards, International Accounting Standards, IFRIC Interpretations and SIC
Interpretations). [IAS 1.16]
Inappropriate
accounting policies are not rectified either by disclosure of the accounting
policies used or by notes or explanatory material. [IAS 1.18]
IAS
1 acknowledges that, in extremely rare circumstances, management may conclude
that compliance with an IFRS requirement would be so misleading that it would
conflict with the objective of financial statements set out in the Framework.
In such a case, the entity is required to depart from the IFRS requirement,
with detailed disclosure of the nature, reasons, and impact of the departure.
[IAS 1.19-21]
Going
concern
The
Conceptual Framework notes that financial statements are normally prepared
assuming the entity is a going concern and will continue in operation for the
foreseeable future. [Conceptual Framework, paragraph 4.1]
IAS
1 requires management to make an assessment of an entity's ability to continue
as a going concern. If management has significant concerns about the
entity's ability to continue as a going concern, the uncertainties must be
disclosed. If management concludes that the entity is not a going concern, the
financial statements should not be prepared on a going concern basis, in which
case IAS 1 requires a series of disclosures. [IAS 1.25]
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. [IAS 1.27]
Consistency
of presentation
The
presentation and classification of items in the financial statements shall be
retained from one period to the next unless a change is justified either by a
change in circumstances or a requirement of a new IFRS. [IAS 1.45]
Materiality
and aggregation
Each
material class of similar items must be presented separately in the financial
statements. Dissimilar items may be aggregated only if the are individually
immaterial. [IAS 1.29]
However,
information should not be obscured by aggregating or by providing immaterial
information, materiality considerations apply to the all parts of the financial
statements, and even when a standard requires a specific disclosure,
materiality considerations do apply. [IAS 1.30A-31]*
*
Added by Disclosure Initiative (Amendments to IAS 1), effective 1 January
2016.
Offsetting
Assets
and liabilities, and income and expenses, may not be offset unless required or
permitted by an IFRS. [IAS 1.32]
Comparative
information
IAS
1 requires that 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, unless another Standard
requires otherwise. Comparative information is provided for narrative and
descriptive where it is relevant to understanding the financial statements of
the current period. [IAS 1.38]
An
entity is required to present at least two of each of the following primary
financial statements: [IAS 1.38A]
statement
of financial position*
statement
of profit or loss and other comprehensive income
separate
statements of profit or loss (where presented)
statement
of cash flows
statement
of changes in equity
related
notes for each of the above items.
* A
third statement of financial position is required to be presented if the entity
retrospectively applies an accounting policy, restates items, or reclassifies
items, and those adjustments had a material effect on the information in the
statement of financial position at the beginning of the comparative period.
[IAS 1.40A]
Where
comparative amounts are changed or reclassified, various disclosures are
required. [IAS 1.41]
Structure
and content of financial statements in general
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).
Reporting
period
There
is a presumption that financial statements will be prepared at least annually.
If the annual reporting period changes and financial statements are prepared
for a different period, the entity must disclose the reason for the change and
state that amounts are not entirely comparable. [IAS 1.36]
Statement
of financial position (balance sheet)
Current
and non-current classification
An
entity must normally present a classified statement of financial position,
separating current and non-current assets and liabilities, unless presentation
based on liquidity provides information that is reliable. [IAS 1.60] In either
case, if an asset (liability) category combines amounts that will be received
(settled) after 12 months with assets (liabilities) that will be received
(settled) within 12 months, note disclosure is required that separates the
longer-term amounts from the 12-month amounts. [IAS 1.61]
Current
assetsare assets that are: [IAS 1.66]
expected
to be realised in the entity's normal operating cycle
held
primarily for the purpose of trading
expected
to be realised within 12 months after the reporting period
cash
and cash equivalents (unless restricted).
All
other assets are non-current. [IAS 1.66]
Current
liabilitiesare 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.
When
a long-term debt is expected to be refinanced under an existing loan facility,
and the entity has the discretion to do so, the debt is classified as
non-current, even if the liability would otherwise be due within 12 months.
[IAS 1.73]
If 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 authorisation of the financial statements for issue, not to demand payment
as a consequence of the breach. [IAS 1.74] However, 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]
Line items
The line items to be included on the face of the statement
of financial position are: [IAS 1.54]
|
(a)
|
property, plant and equipment
|
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(b)
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investment property
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(c)
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intangible assets
|
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(d)
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financial assets (excluding amounts shown under (e), (h),
and (i))
|
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(e)
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investments accounted for using the equity method
|
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(f)
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biological assets
|
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(g)
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inventories
|
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(h)
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trade and other receivables
|
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(i)
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cash and cash equivalents
|
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(j)
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assets held for sale
|
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(k)
|
trade and other payables
|
|
(l)
|
provisions
|
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(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.
|
Additional
line items, headings and subtotals may be needed to fairly present the entity's
financial position. [IAS 1.55]
When
an entity presents subtotals, those subtotals shall be comprised of line items
made up of amounts recognised and measured in accordance with IFRS; be
presented and labelled in a clear and understandable manner; be consistent from
period to period; and not be displayed with more prominence than the required
subtotals and totals. [IAS 1.55A]*
*
Added by Disclosure Initiative (Amendments to IAS 1), effective 1 January
2016.
Further
sub-classifications of line items presented are made in the statement or in the
notes, for example: [IAS 1.77-78]:
classes
of property, plant and equipment
disaggregation
of receivables
disaggregation
of inventories in accordance with IAS 2 Inventories
disaggregation
of provisions into employee benefits and other items
classes
of equity and reserves.
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. The long-term
financing approach used in UK and elsewhere – fixed assets + current assets -
short term payables = long-term debt plus equity – is also acceptable.
Share
capital and reserves
Regarding
issued 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.
Additional
disclosures are required in respect of entities without share capital and where
an entity has reclassified puttable financial instruments. [IAS 1.80-80A]
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 recognised 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]
|
Comprehensive income
for the period |
=
|
Profit
or loss |
+
|
Other
comprehensive income |
All
items of income and expense recognised in a period must be included in profit
or loss unless a Standard or an Interpretation requires otherwise. [IAS 1.88]
Some IFRSs require or permit that some components to be excluded from profit or
loss and instead to be included in other comprehensive income.
|
Examples of items recognised 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
recognised 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.
|
In addition, IAS 8 Accounting
Policies, Changes in Accounting Estimates and Errors requires the
correction of errors and the effect of changes in accounting policies to be
recognised outside profit or loss for the current period. [IAS 1.89]
Choice in presentation and basic requirements
An
entity has a choice of presenting:
a
single statement of profit or loss and other comprehensive income, with profit
or loss and other comprehensive income presented in two sections, or
two
statements:
a
separate statement of profit or loss
a
statement of comprehensive income, immediately following the statement of
profit or loss and beginning with profit or loss [IAS 1.10A]
The
statement(s) must present: [IAS 1.81A]
profit
or loss
total
other comprehensive income
comprehensive
income for the period
an
allocation of profit or loss and comprehensive income for the period between
non-controlling interests and owners of the parent.
Profit
or loss section or statement
The
following minimum line items must be presented in the profit or loss section
(or separate statement of profit or loss, if presented): [IAS 1.82-82A]
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
Expenses
recognised in profit or loss should be analysed either by nature (raw
materials, staffing costs, depreciation, etc.) or by function (cost of sales,
selling, administrative, etc). [IAS 1.99] If an entity categorises by function,
then additional information on the nature of expenses – at a minimum depreciation,
amortisation and employee benefits expense – must be disclosed. [IAS 1.104]
Other
comprehensive income section
The
other comprehensive income section is required to present line items which are
classified by their nature, and grouped between those items that will or will
not be reclassified to profit and loss in subsequent periods. [IAS 1.82A]
An
entity's share of OCI of equity-accounted associates and joint ventures is
presented in aggregate as single line items based on whether or not it will
subsequently be reclassified to profit or loss. [IAS 1.82A]*
*
Clarified by Disclosure Initiative (Amendments to IAS 1), effective 1
January 2016.
When
an entity presents subtotals, those subtotals shall be comprised of line items
made up of amounts recognised and measured in accordance with IFRS; be
presented and labelled in a clear and understandable manner; be consistent from
period to period; not be displayed with more prominence than the required
subtotals and totals; and reconciled with the subtotals or totals required in
IFRS. [IAS 1.85A-85B]*
*
Added by Disclosure Initiative (Amendments to IAS 1), effective 1 January
2016.
Other
requirements
Additional
line items may be needed to fairly present the entity's results of operations.
[IAS 1.85]
Items
cannot be presented as 'extraordinary items' in the financial statements or in
the notes. [IAS 1.87]
Certain
items must be disclosed separately either in the statement of comprehensive
income or in the notes, if material, including: [IAS 1.98]
write-downs
of inventories to net realisable 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
Statement
of cash flows
Rather
than setting out separate requirements for presentation of the statement of
cash flows, IAS 1.111 refers to IAS 7 Statement
of Cash Flows.
Statement
of changes in equity
IAS
1 requires an entity to present a separate statement of changes in equity. The
statement must show: [IAS 1.106]
total
comprehensive income for the period, showing separately amounts attributable to
owners of the parent and to non-controlling interests
the
effects of any retrospective application of accounting policies or restatements
made in accordance with IAS 8, separately
for each component of other comprehensive income
reconciliations
between the carrying amounts at the beginning and the end of the period for
each component of equity, separately disclosing:
profit
or loss
other
comprehensive income*
transactions
with owners, showing separately contributions by and distributions to owners
and changes in ownership interests in subsidiaries that do not result in a loss
of control
* An
analysis of other comprehensive income by item is required to be presented
either in the statement or in the notes. [IAS 1.106A]
The
following amounts may also be presented on the face of the statement of changes
in equity, or they may be presented in the notes: [IAS 1.107]
amount
of dividends recognised as distributions
the
related amount per share.
Notes
to the financial statements
The
notes must: [IAS 1.112]
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
Notes
are presented in a systematic manner and cross-referenced from the face of the
financial statements to the relevant note. [IAS 1.113]
IAS
1.114 suggests that the notes should normally be presented in the following
order:*
a
statement of compliance with IFRSs
a
summary of significant accounting policies applied, including: [IAS 1.117]
the
measurement basis (or bases) used in preparing the financial statements
the
other accounting policies used that are relevant to an understanding of the
financial statements
supporting
information for items presented on the face of the statement of financial
position (balance sheet), statement(s) of profit or loss and other
comprehensive income, statement of changes in equity and statement of cash
flows, in the order in which each statement and each line item is presented
other
disclosures, including:
contingent
liabilities (see IAS 37) and unrecognised contractual commitments
non-financial
disclosures, such as the entity's financial risk management objectives and
policies (see IFRS 7 Financial
Instruments: Disclosures)
* Disclosure
Initiative (Amendments to IAS 1), effective 1 January 2016, clarifies this
order just to be an example of how notes can be ordered and adds additional
examples of possible ways of ordering the notes to clarify that
understandability and comparability should be considered when determining the
order of the notes.
Other
disclosures
Judgements
and key assumptions
An
entity must disclose, in the summary of significant accounting policies or
other notes, the judgements, apart from those involving estimations, that
management has made in the process of applying the entity's accounting policies
that have the most significant effect on the amounts recognised in the
financial statements. [IAS 1.122]
Examples
cited in IAS 1.123 include management's judgements in determining:
when
substantially all the significant risks and rewards of ownership of financial
assets and lease assets are transferred to other entities
whether,
in substance, particular sales of goods are financing arrangements and
therefore do not give rise to revenue.
An
entity must also disclose, in the notes, information about the key assumptions
concerning the future, and other key sources of estimation uncertainty at the
end of the reporting period, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next
financial year. [IAS 1.125] These disclosures do not involve disclosing budgets
or forecasts. [IAS 1.130]
Dividends
In
addition to the distributions information in the statement of changes in equity
(see above), the following must be disclosed in the notes: [IAS 1.137]
the
amount of dividends proposed or declared before the financial statements were
authorised for issue but which were not recognised as a distribution to owners
during the period, and the related amount per share
the
amount of any cumulative preference dividends not recognised.
An
entity discloses information about its objectives, policies and processes for
managing capital. [IAS 1.134] To comply with this, the disclosures include:
[IAS 1.135]
qualitative
information about the entity's objectives, policies and processes for managing
capital, including>
description
of capital it manages
nature
of external capital requirements, if any
how
it is meeting its objectives
quantitative
data about what the entity regards as capital
changes
from one period to another
whether
the entity has complied with any external capital requirements and
if
it has not complied, the consequences of such non-compliance.
IAS
1.136A requires the following additional disclosures if an entity has a
puttable instrument that is classified as an equity instrument:
summary
quantitative data about the amount classified as equity
the
entity's objectives, policies and processes for managing its obligation to
repurchase or redeem the instruments when required to do so by the instrument
holders, including any changes from the previous period
the
expected cash outflow on redemption or repurchase of that class of financial
instruments and
information
about how the expected cash outflow on redemption or repurchase was determined.
Other
information
The
following other note disclosures are required by IAS 1 if not disclosed
elsewhere in information published with the financial statements: [IAS 1.138]
domicile
and legal form of the entity
country
of incorporation
address
of registered office or principal place of business
description
of the entity's operations and principal activities
if
it is part of a group, the name of its parent and the ultimate parent of the
group
if
it is a limited life entity, information regarding the length of the life
Terminology
The
2007 comprehensive revision to IAS 1 introduced some new terminology.
Consequential amendments were made at that time to all of the other existing
IFRSs, and the new terminology has been used in subsequent IFRSs including
amendments. IAS 1.8 states: "Although this Standard uses the terms 'other
comprehensive income', 'profit or loss' and 'total comprehensive income', an
entity may use other terms to describe the totals as long as the meaning is
clear. For example, an entity may use the term 'net income' to describe profit
or loss." Also, IAS 1.57(b) states: "The descriptions used and the
ordering of items or aggregation of similar items may be amended according to
the nature of the entity and its transactions, to provide information that is
relevant to an understanding of the entity's financial position."
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Term
before 2007 revision of IAS 1
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Term
as amended by IAS 1 (2007)
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balance
sheet
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statement
of financial position
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cash flow statement
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statement of cash flows
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income statement
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statement of comprehensive income (income statement is
retained in case of a two-statement approach)
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recognised in the income statement
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recognised in profit or loss
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recognised [directly] in equity (only for OCI components)
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recognised in other comprehensive income
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recognised [directly] in equity (for recognition both in
OCI and equity)
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recognised outside profit or loss (either in OCI or
equity)
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removed from equity and recognised in profit or loss
('recycling')
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reclassified from equity to profit or loss as a
reclassification adjustment
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Standard or/and Interpretation
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IFRSs
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on the face of
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in
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equity holders
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owners (exception for 'ordinary equity holders')
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balance sheet date
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end of the reporting period
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reporting date
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end of the reporting period
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after the balance sheet date
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after the reporting period
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