IAS 1 Presentation of Financial Statements
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IAS 1 Presentation of Financial Statements
Welcome
Terms
These (referred to as “financial statements”) are 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.
Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so. For a particular prior period, it is impracticable to apply a change in an accounting policy retrospectively or to make a retrospective restatement to correct an error if any of the following conditions are met:
• The effects of the retrospective application or retrospective restatement are not determinable;
• The retrospective application or retrospective restatement requires assumptions about what management's intent would have been in that period; or
• The retrospective application or retrospective restatement requires significant estimates of amounts and it is impossible to distinguish objectively information about those estimates that:
o Provides evidence of circumstances that existed on the date(s) as at which those amounts are to be recognized, measured or disclosed; and
o Would have been available when the financial statements for that prior period were authorized for issue from other information.
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 make on the basis of those financial statements, which provide financial information about a specific reporting entity.
Materiality depends on the nature or magnitude of information or both. An entity should assess whether information, either individually or in combination with other information, is material in the context of its financial statements taken as a whole.
Notes contain information in addition to that presented in the statement of financial position, statement(s) of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows. Notes provide narrative descriptions or disaggregations of items presented in those statements and information about items that do not qualify for recognition in those statements.
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 IFRS Accounting Standards.
The components of other comprehensive income include:
• Changes in revaluation surplus (see IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets);
• Remeasurements of defined benefit plans (see IAS 19 Employee Benefits);
• Gains and losses arising from translating the financial statements of a foreign operation (see IAS 21 The Effects of Changes in Foreign Exchange Rates);
• For entities that have adopted IFRS 9 Financial Instruments:
o Gains and losses from investments in equity instruments designated at fair value through other comprehensive income in accordance with paragraph 5.7.5 of IFRS 9;
o Gains and losses on financial assets measured at fair value through other comprehensive income in accordance with paragraph 4.1.2A of IFRS 9;
o The effective portion of gains and losses on hedging instruments in a cash flow hedge and the gains and losses on hedging instruments that hedge investments in equity instruments measured at fair value through other comprehensive income in accordance with paragraph 5.7.5 of IFRS 9;
o For particular liabilities designated as at fair value through profit or loss, the amount of the change in fair value that is attributable to changes in the liability’s credit risk (see paragraph 5.7.7 of IFRS 9);
o Changes in the value of the time value of options when the intrinsic value and time value of an option contract are separated and only the changes in the intrinsic value are designated as the hedging instrument; and
o Changes in the value of the forward elements of forward contracts when the forward element and the spot element of a forward contract are separated and only the changes in the spot element are designated as the hedging instrument, and changes in the value of the foreign currency basis spread of a financial instrument when it is excluded from the designation of that financial instrument as the hedging instrument;
• For entities that have not yet adopted IFRS 9:
o Gains and losses on remeasuring available-for-sale financial assets; and
o The effective portion of gains and losses on hedging instruments in a cash flow hedge;
• For entities that have adopted IFRS 17 Insurance Contracts:
o Insurance finance income and expenses from contracts issued within the scope of IFRS 17 excluded from profit or loss when total insurance finance income or expenses is disaggregated to include in profit or loss an amount determined by a systematic allocation applying paragraph 88(b) of IFRS 17, or by an amount that eliminates accounting mismatches with the finance income or expenses arising on the underlying items, applying paragraph 89(b) of IFRS 17; and
o Finance income and expenses from reinsurance contracts held excluded from profit or loss when total reinsurance finance income or expenses is disaggregated to include in profit or loss an amount determined by a systematic allocation applying paragraph 88(b) of IFRS 17.
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 other comprehensive income in the current or previous periods.
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. It comprises all components of “profit or loss” and of “other comprehensive income.”
Here are some useful links and documents:
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Handout_DiaMonde trial balance
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Handout_Environmend Support trial balance
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Handout_Statement of changes in equity
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Handout_Statement of financial position
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Handout_Statement of profit or loss and OCI
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Handout_2022 Model Financial Statements
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Handout_Environmend_Green_financial_statements_A
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Handout_Environmend_Green_financial_statements_Q
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Handout_Sodwana