Presentation of Financial Statements

• General Purpose Financial Statements: Intended to meet the needs of users who are not in a position to require an entity to prepare reports tailored to their information needs.
• General Purpose Financial Statements: Referred to as Financial Statements, are directed to all common users.
• Financial Statements: are means by which information are communicated to users.
• Information to be displayed, and repeated if necessary:

  1. Name of reporting entity or any identification.
  2. Whether fs are individual or by group.
  3. Currency
  4. Level of rounding used in presenting amounts.
• Financial Statements shall be presented at least annually.
• FS are presented in longer or shorter than 1 year, an entity shall disclose:

  1. Period covered by fs.
  2. Reason for using longer or shorter period.
  3. Amounts presented are not entirely comparable.
• "True or False"

  True: An entity shall now offset assets and liabilities or income and expenses, unless required or permitted by a PFRS.
• The final stage in the process of aggregation and classification is the presentation of condensed and classified data, which form line items in the financial statements.
• An entity shall classify an asset as current when:

  1. Expects to realize the asset, or intends to sell or consume it, in its normal operating cycle.
  2. Holds the asset primarily for the purpose of trading.
  3. Expects to realize the asset within twelve months after the reporting period.
  4. Cash unless it is restricted from being exchanged to settle a liability at least 12 months.
• An entity shall classify a liability as current when:

  1. Expects to settle the liability in its normal operating cycle.
  2. Holds the liability primarily for the purpose of trading.
  3. The liability is due to be settled within twelve months.
  4. It does not have an unconditional right to defer settlement of the liability for at least twelve months