International Accounting Standard 1

Presentation of Financial Statements

Bhupendra Mantri, FCA, Kalani & Co., Chartered Accountants,

Jaipur (India)Mobile: 91 98298 88810

Email: bmantri@kalanico.comWebsite: www.kalanica.com

Objective

Scope

List of IFRSIFRS 1 First Time Adoption of International

Financial Reporting Standards

IFRS 2 Share based Payment

IFRS 3 Business Combination

IFRS 4 Insurance Contracts

IFRS 5 Non current assets held for sale and discontinued operations

IFRS 6 Exploration for and Evaluation of Mineral Resources

IFRS 7 Financial Instruments: Disclosure

IFRS 8 Operating Segments

List of IFRS (IAS)IAS 1 Presentation of Financial Statements

IAS 2 Inventories

IAS 7 Statement of Cash Flows

IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

IAS 10 Events after Reporting Periods

IAS 11 Construction Contracts

IAS 12 Income Taxes

IAS 16 Property, Plant and Equipment

IAS 17 Leases

IAS 18 Revenue

IAS 19 Employee Benefits

IAS 20 Accounting for Governemnt Grants and Disclosure of Government Assistance

List of IFRS (IAS)IAS 21 The Effect of Changes in Foreign Exchange Rates

IAS 23 Borrowing Costs

IAS 24 Related Party Disclosure

IAS 26 Accounting and Reporting by Retire Benefit Plans

IAS 27 Consolidated and Separate Financial Statements

IAS 28 Investment in Associates

IAS 29 Financial Reporting in Hyperinflationary Economies

IAS 31 Interests in Joint Ventures

IAS 32 Financial Instruments: Presentation

IAS 33 Earnings Per Share

IAS 34 Interim Financial Reporting

IAS 36 Impairment of Assets

IAS 37 Provisions, Contingent Liabilities and Contingent Assets

List of IFRS (IAS)IAS 38 Intangible Assets

IAS 39 Financial Instruments: Recognition and Measurement

IAS 40 Investment Property

IAS 41 Agriculture

DefinitionsGeneral Purpose Financial Statements

Those intended to meet the needs of users who are not in a position to require an entity to prepare reports tailored to their particular information needs

Impracticable Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort do so.

IFRSs Standards and Interpretations adopted by the IASB. They comprises: IFRS, IAS, Interpretation by IFRIC, SIC.

Material Omissions or misstatements of items

Are materail if they could, individually or collectively, influence the economic decisions that users make on the basis of financial statements.

Notes Contain information in addition to that presented in the statement of financial position, statement of comprehensive income, separate income statement(if presented), statement of changes in equity and statement of cash flows.

Other comprehensive income

Comprises items of income and expense (including reclassification adjustments) that are not recognized in profit or loss as required or permitted by other IFRSs.

Components of other comprehensive income

Definitions

Owners Are holders of instruments classified as equity.

Profit or Loss Is the total of income less expenses, excluding the components of other comprehensive income.

Reclassification adjustments

are amounts reclassified to profit or loss in the current period that were recognized in the current or previous periods.

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.Total comprehensive income comprises all components of ‘profit or loss’ and of ‘other comprehensive income’.

Complete set of financial statements

General Features

Fair presentation and compliance with IFRS

Fair presentation and compliance with IFRS

Going Concern

Accrual Basis of Accounting

Materiality and aggregation

Offsetting

Frequency of reporting

Comparative Information

Consistency of presentation

Structure and content

Identification of the financial statements

Statement of financial position

Information to be presented in the statement of financial position

Information to be presented in the statement of financial position

Current / non current distinction

Current assets

Current liabilities

Specific Discussion (Para 70-76)

Information to be presented either in the statement of financial position or in the notes

Statement of comprehensive income

• Information to be presented in the statement of comprehensive income

• Profit or loss for the period• Other comprehensive income for the period• Information to be presented in the statement of

comprehensive income or in notes

Analysis of Expenses

• ‘Nature of expenses’ method

• ‘Function of expenses’ method

Statement of Changes in equity

• Total comprehensive income for the period

• Effect of retrospective application or retrospective restatement (IAS 8)

• Reconciliation between the carrying amount at the beginning and the end of the period

• Dividend distributed per share

Statement of cash flows – IAS 7

Notes

• Structure

• Disclosure of Accounting Policies

• Sources of estimation uncertainty

• Capital

• Other disclosures

Notes - Structure

• Basis of preparation of the financial statements and the specific accounting policies

• Information required by IFRSs that is not presented elsewhere in the financial statements

• Information relevant to an understanding of financial statements

• Systemic manner, cross reference

Notes: Disclosure of Accounting Policies

• Measurement basis used in preparing the financial statements

• Other accounting policies used that are relevant to an understanding of FS

• Judgments that management has made in the process of applying the entity’s accounting policies

Notes: Sources of estimation uncertainty

• Information about the assumption• Major sources of estimation uncertainty

Capital

An entity shall disclose information that enables users of its financial statements to evaluate the entity’s objectives, policies and processes for managing capital

Notes: Other disclosures

• An entity shall disclose in the notes:– Dividend proposed or declared – Amount of any cumulative preference dividends

not recognized

• Domicile and legal form of the entity, its country of incorporation and the address of its registered office

• Description of nature of the entity’s operations and its principal activities

• Name of the parent and the ultimate parent of the group