IAS 1

• This Standard prescribes the basis for presentation of general purpose financial statements to ensure comparability both with the entity’s financial statements of previous periods and with the financial statements of other entities. It sets out overall requirements for the presentation of financial statements, guidelines for their structure and minimum requirements for their content.
• General purpose financial statements (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.
• International Financial Reporting Standards (IFRSs) are Standards and

  Interpretations issued by the International Accounting Standards Board

  (IASB). They comprise:

  (a) IFRS

  (b) IAS

  (c) IFRIC Interpretations; and

  (d) SIC Interpretations.
• Materiality depends on the nature or magnitude of information, or both.
• Information is obscured if it is communicated in a way that would have a similar effect for primary users of financial statements to omitting or misstating that information.
• The following are examples of circumstances

  that may result in material information being obscured:

  (a) language used is vague or

  unclear;

  (b) information is scattered throughout the financial statements;

  (c) dissimilar items are inappropriately

  aggregated;

  (d) similar items are inappropriately

  disaggregated.

  (e) material information being hidden by immaterial information
• 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.
• 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 recognised in other comprehensive income 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.
• Financial statements are a structured representation of the financial position

  and financial performance of an entity.
• Fair presentation requires the

  faithful representation of the effects of transactions, other events and

  conditions in accordance with the definitions and recognition criteria for

  assets, liabilities, income and expenses set out in the Conceptual Framework

  for Financial Reporting (Conceptual Framework).
• An entity whose financial statements comply with IFRSs shall make an

  explicit and unreserved statement of such compliance in the notes. An

  entity shall not describe financial statements as complying with IFRSs

  unless they comply with all the requirements of IFRSs.
• An entity cannot rectify inappropriate accounting policies either by

  disclosure of the accounting policies used or by notes or explanatory

  material.
• 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.
• Owners are holders of instruments classified as equity.
• When preparing financial statements, management shall make an assessment of an entity’s ability to continue as a going concern. An entity shall prepare financial statements on a going concern basis unless management either intends to liquidate the entity or to cease trading, or has no realistic alternative but to do so.
• When an entity does not prepare financial statements on a going concern basis, it shall disclose that fact, together with the basis on

  which it prepared the financial statements and the reason why the entity is not regarded as a going concern.
• In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but is not limited to, twelve months from the end of the reporting period.
• An entity shall prepare its financial statements, except for cash flow information, using the accrual basis of accounting.
• An entity shall present separately each material class of similar items. An entity shall present separately items of a dissimilar nature or function unless they are immaterial.
• Financial statements result from processing large numbers of transactions or

  other events that are aggregated into classes according to their nature or

  function.
• If a line item is not individually material, it is aggregated with other items either in those statements or in the notes. An item that is

  not sufficiently material to warrant separate presentation in those statements may warrant separate presentation in the notes.
• An entity shall not reduce the understandability of its financial statements by obscuring material information with immaterial information or by

  aggregating material items that have different natures or functions.
• An entity need not provide a specific disclosure required by an IFRS if the information resulting from that disclosure is not material.
• An entity shall not offset assets and liabilities or income and expenses, unless required or permitted by an IFRS.
• When offsetting reflects the substance of the transaction or other event, detracts from the ability of users both to understand the transactions, other events and conditions that

  have occurred and to assess the entity’s future cash flows.
• An entity presents on a net basis gains and losses arising from a group of similar transactions.
• An entity shall present a complete set of financial statements (including comparative information) at least annually.
• When an entity changes the

  end of its reporting period and presents financial statements for a period

  longer or shorter than one year, an entity shall disclose:

  (a) the reason for using a longer or shorter period, and

  (b) the fact that amounts presented in the financial statements are not entirely comparable.
• Except when IFRSs permit or require otherwise, an entity shall present comparative information in respect of the preceding period for all

  amounts reported in the current period’s financial statements. An entity shall include comparative information for narrative and descriptive information if it is relevant to understanding the current period’s financial

  statements.
• In some cases, narrative information provided in the financial statements for the preceding period(s) continues to be relevant in the current period.
• An entity may present comparative information in addition to the minimum comparative financial statements required by IFRSs, as long as that information is prepared in accordance with IFRSs.
• An entity shall present a third statement of financial position as at the beginning of the preceding period in addition to the minimum

  comparative financial statements required in paragraph 38A if:

  (a) it applies an accounting policy retrospectively, makes a

  retrospective restatement of items in its financial statements or

  reclassifies items in its financial statements; and

  (b) the retrospective application, retrospective restatement or the

  reclassification has a material effect on the information in the

  statement of financial position at the beginning of the preceding

  period.
• In the circumstances described in paragraph 40A, an entity shall present three

  statements of financial position as at:

  (a) the end of the current period;

  (b) the end of the preceding period; and

  (c) the beginning of the preceding period.
• When it is impracticable to reclassify comparative amounts, an entity shall

  disclose:

  (a) the reason for not reclassifying the amounts, and

  (b) the nature of the adjustments that would have been made if the

  amounts had been reclassified.
• If an entity changes the presentation or classification of items in its

  financial statements, it shall reclassify comparative amounts unless

  reclassification is impracticable.
• Enhancing the inter-period comparability of information assists users in

  making economic decisions, especially by allowing the assessment of trends in

  financial information for predictive purposes.