IAS 1 PRESENTATION OF FINANCIAL STATEMENTS (REVISED 1997) 1 The financial statements should include the following components: a) income

statement; 2 b) balance sheet; 3 4 c) a statement showing either: 01. all changes in equity;or 5 02. changes in equity except those arising from 6 capital transactions with owners and distributions to owners, i.e. a statement of recognized gains and losses; d) cash flow statement 7 e) accounting policies; and 8 9 f) notes to the financial statements 10 OVERALL CONSIDERATIONS IN PRESENTATION OF FINANCIAL STATEMENTS An enterprise whose financial statements comply with International Accounting Standards should disclose that fact. Disclosure as to the fact that financial statements of the enterprise are prepared on going concern basis Each material item should be presented separately in the financial statements. Comparative information in respect of the previous period for all numerical information in the financial statements. Comparative information should be included in narrative and descriptive information when it is relevant to an understanding of the current period's financial statements. STRUCTURE AND CONTENT Financial Statements should be clearly identified and distinguished from other information in the annual report. The following information should be displayed and repeated when it is necessary for proper understanding of the information presented: (a) the name of the reporting enterprise or other means of identification; (b) whether the financial statements cover the

Reference IAS1P7 IAS1P7 IAS1P7 IAS1P7 IAS1P7 IAS1P7

IAS1P7 IAS1P7 IAS1P7

11

IAS1P11

12

IAS1P23

13 14

IAS10p 29 IAS1p 38

15 16

IAS1p 46

17

IAS1p 46

18 19

IAS1p 46 IAS1p 46

20

21

individual enterprise or a group of enterprises; (c) the balance sheet date or the period covered IAS1p 46 by the financial statements, whichever is appropriate to the related component of the financial statements; (d) the reporting currency; and IAS1p 46

22

(e)

the level of precision used the presentation

IAS1p 46

23

24 25 26

27 28

29 30 31 32 33 34 35 36 37 38 39 40 41

42 43

of figures in the financial statements. Is the current /non-current distinction of assets and liabilities made on the face of the balance sheet? 01. yes-ensure that classification rules in IAS 1p57-65 are applied 02. no-ensure that assets and liabilities are presented broadly in order of their liquidity The amount of any liability that has been excluded from current liabilities because of intent to refinance the obligation together with information of agreement to refinance. INFORMATION TO BE PRESENTED ON THE FACE OF BALANCE SHEET At minimum, the face of the balance sheet should include line items which present the following amounts: property, plant and equipment; intangible assets; financial assets (excluding amounts shown under (d), (f) and (g)); investments accounted for using the equity method; inventories; trade and other receivables; cash and cash equivalents; trade and other payables; tax liabilities and assets as required by IAS 12, Income Taxes; provisions; Assets measured at different bases should be presented as separate line items. Information to be Presented Either on the Face of the Balance Sheet or in the Notes Further sub-classification of the line items presented, classified in a manner appropriate to the enterprise's operations. Disclosure on Trade and other receivables: Receivables should be disclosed in a manner appropriate to the enterprise's operations, with the following specific disclosures: (a) trade receivables; (b) receivables from subsidiaries (in standalone accounts) receivables from related parties; (d) other receivables and (e) prepayments Disclosure on Trade and other payables:

IAS1p53

IAS1p53 IAS1p53 IAS1p 63

[IAS1p 66]

[IAS1p 66] [IAS1p 66] [IAS1p 66] [IAS1p 66] [IAS1p 66] [IAS1p 66] [IAS1p 66] [IAS1p 66] [IAS1p 66] [IAS1p 66] [IAS1p71]

[IAS1p72]

[IAS1p73]

44 45 46 47 48 49

[IAS1p73] [IAS1p73] [IAS1p73] [IAS1p73] [IAS1p73]

50

51 52 53 54 55 56

57 58 59 60

61

62

63

64 65 66

67 68 69

70 71 72 73

Payables should be disclosed in a manner appropriate to the enterprise's operations, with the following specific disclosures: (a) trade payables; (b) payables to subsidiaries (in stand alone accounts); payables to related parties; (d) other payables; (e) accruals and deferred incomes. Disclose the following for each class of share capital either on the face of the balance sheet or in the notes: i. The number of shares authorized; ii. The number of shares issued and fully paid, and issued but not fully paid iii. Par value per share ,or that the shares have no par value iv. A reconciliation of the number of shares outstanding at the beginning and at the end of the year; v. The rights, preferences and restrictions attaching to that class including restrictions on the distribution of dividends and the repayment of capital; vi. Shares in the enterprise held by the enterprise itself or by subsidiaries or associates of the enterprise; vii. Shares reserved for issuance under options and sales contracts, including the terms and amounts. Disclosures on Reserve: (i) A description of the nature and purpose of each reserve within owners equity; (ii) When dividends have been proposed but not formally approved for payment, the amount included in liabilities; and (iii) The amount of any cumulative preference dividends not recognized. INCOME STATEMENT As a minimum, the face of the income statement should include line items which present the following amounts: revenue; the results of operating activities; finance costs; share of profits and losses of associates and joint ventures accounted for using the equity method; tax expense; profit or loss from ordinary activities; extraordinary items; minority interest; and

[IAS1p72]

[IAS1p72] [IAS1p72] [IAS1p72] [IAS1p72] [IAS1p72] [IAS1p74a]

[IAS1p74a] [IAS1p74a] [IAS1p74a] [IAS1p74a]

[IAS1p74a]

[IAS1p74a]

[IAS1p74a]

[1p74b,c&d] [1p74b,c&d]

[1p74b,c&d]

[IAS1p75]

[IAS1p75] [IAS1p75] [IAS1p75] [IAS1p75]

74 75 76 77

[IAS1p75] [IAS1p75] [IAS1p75] [IAS1p75]

78 79

80 81

82

83

84

85 86

87 88

89

net profit or loss for the period. Additional line items, headings and sub-totals should be presented on the face of the income statement when required by an International Accounting Standard, or when such presentation is necessary to present fairly the enterprise's financial performance. Information to be Presented Either on the Face of Income Statement or in the Notes Analysis of expenses using a classification based on either the nature of expenses or their function within the enterprise. For enterprises classifying expenses by function, additional information on the nature of expenses, including depreciation and amortization expense and staff costs. When items of income and expense within profit or loss from ordinary activities are of such size, nature or incidence that their disclosure is relevant to explain the performance of the enterprise for the period, the nature and amount of such items should Amount of dividends per share declared or proposed for the period covered by the financial statements. STATEMENT OF CHANGES IN EQUITY An enterprise should present, as a separate component of its financial statements, a statement showing: a. the net profit or loss for the period; b. each item of income and expense, gain or loss which, as required by other Standards, is recognized directly in equity, and the total of these items; and c. the cumulative effect of changes in accounting

[IAS1p75] [IAS1p75]

[IAS 1, par. 77]

[IAS 1, par. 83]

[IAS 8, par. 16]

[IAS1p85]

[IAS1p86]

[IAS1p86] [IAS1p86]

[IAS1p86]

90 91 92

policy and the correction of fundamental errors. In addition, an enterprise should present, either [IAS1p86] within this statement or in the notes: d. capital transactions with owners and distribution [IAS1p86] to owners; e. the balance of accumulated profit or loss at the [IAS1p86] beginning of the period and at the balance sheet

93

date, and the movements for the period; and f. a reconciliation between the carrying amount of [IAS1p86] each class of equity capital, share premium and each reserve at the beginning and the end of the period, separately disclosing each movement. NOTES TO FINANCIAL STATEMENTS The notes to financial statements should:

94 95

96

97

98

a. present information about the basis of preparation of the financial statements and the specific accounting policies selected and applied for significant transactions and events; b. disclose the information required by IAS that is not presented elsewhere in the financial statements; and c. provide additional information which is not presented on the face of the financial statements

[IAS1p 91]

[IAS1p 91]

[IAS1p 91]

99

100

101

but that is necessary for a fair presentation Notes should be presented in a systematic [IAS 1, par. 92] manner. Each item on the face of the balance sheet, income statement and cash flow statement should be cross-referenced to any related information in the notes. The following should be disclosed if not disclosed [IAS1p102] elsewhere in information published with the financial statements: (a) the domicile and legal form of the enterprise, [IAS1p102] its country of incorporation and the address of the registered office (or principal place of business, if different from the registered office); (b) a description of the nature of enterprise's operations and its principal activities; (c) the name of the parent enterprise and the

102

[IAS1p102]

103

[IAS1p102]

104 105 106

ultimate parent enterprise of the group; and (d) either the number of employees at the end [IAS1p102] of the period or the average for the period. ACCOUNTING POLICIES The accounting policies section in the notes to the [IAS1p97] financial statements should describe the following: a. the measurement basis (or bases) used in [IAS1p97] preparing the financial statements; and b. each specific accounting policy that is necessary for a proper understanding of the financial statements.

107

108

[IAS1p97]