Ias 1

Topics: Balance sheet, International Financial Reporting Standards, Financial statements Pages: 36 (11262 words) Published: December 25, 2012
IAS - 1
Presentation of Financial Statements

By: http://www.WorldGAAPInfo.com

International Accounting Standard No 1 (IAS 1)

Presentation of Financial Statements

This revised Standard replaces IAS 1 (revised 1997) Presentation of Financial Statements and will apply for annual periods beginning on or after January 1, 2005. Earlier application is encouraged.

By: http://www.WorldGAAPInfo.com



The objective of this Standard is to lay the groundwork for the submission of financial statements for purposes of general information to ensure that they are comparable, both with the financial statements of the same entity in prior years, as with those of various other entities. To achieve this objective, the Standard states, firstly, general requirements for submitting financial statements, and then provides guidelines for determining its structure, while laying down minimum requirements on its contents. Both the recognition, as the valuation and disclosure on certain transactions and other events, are addressed in other Standards and Interpretations. Scope


This rule applies to all types of financial statements for purposes of general information, which are drafted and presented in accordance with the International Financial Reporting Standards (IFRS). The financial statements for purposes of general information are those who seek to meet the needs of users who are not in a position to demand reports tailored to their specific needs for information. The financial statements for purposes of general information include those who presented separately, or in another document of a public nature as the annual report or a brochure or information leaflet stock. This rule does not apply to the structure and content of interim financial statements which present a condensed form and are prepared in accordance with IAS 34 interim financial reporting. However, paragraphs 13 to 41 shall apply to such statements. The rules set out in this standard will be applied equally to all entities, regardless of whether developed or separated consolidated financial statements, as defined in IAS 27 Consolidated Financial Statements and separated. [Repealed] This standard uses the terminology-profit entities, including those belonging to the public sector. The purpose entities that do not pursue profit, and belong to the private sector or public, or any kind of public service, if they wish to apply this standard could be forced to change the descriptions used for certain items in the financial statements, and even change the names of the financial statements. Likewise, entities that have no net worth, as defined in IAS 32 Financial Instruments: Presentation (for example, some investment funds), and those entities whose capital is not equity (for example, some entities cooperatives) Might need to adapt the presentation of the shares of its members or participants in the financial statements.


4. 5.


By: http://www.WorldGAAPInfo.com

Purpose of Financial Statements 7. The financial statements are a representation of structured financial position and financial performance of the entity. The objective of financial statements for purposes of general information is to provide information about the financial position, financial performance and cash flows of the entity; it is useful to a wide variety of users to take their economic decisions. The financial statements also show the results of management by managers with the resources entrusted to them. To meet this objective, the financial statements provide information about the following elements of the entity: (a) assets; (b) liabilities; (c) net worth; (a) expenditures and revenues, which include gains and losses; (b) other changes in equity; (c) cash flows. This information, along with that contained in the notes, will help users predict future cash flows, and in particular the timing and degree of certainty for them. Components of financial...
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