PAS1

• Financial Reporting Standards


  • Standards issued by the GB
• PAS 1 prescribes the basis for presentation of general purpose financial statements to ensure comparability
• Financial accounting policy includes information on cost and net realization
• Revaluation of assets

  Recognized in other comprehensive income
• Inventory valuation


  Calculated using the estimated net realizable value and costs to sell
• Deferred tax assets and deferred tax liabilities are presented as noncurrent items in a classified statement of financial position
• Bringing the inventory


  Direct labor costs and
• Revaluation of assets
• Components of a complete set of financial statements

  • Statement of financial position, Statement of profit or loss and other comprehensive income, Statement of changes in equity, Statement of cash flows, Notes, Comparative information, Additional statement of financial position when an entity makes a retrospective application, retrospective restatement, or reclassifies items with material effect
• PAS 1 encourages the classified presentation of financial statements
• General purpose financial statements provide information about the financial position, financial performance, and cash flows of an entity
• The statement of financial position may be presented either showing current/non-current distinction (classified) or based on liquidity (unclassified)
• Income and expenses may be presented in a single statement of comprehensive income or in two statements - an income statement and a statement presenting comprehensive income
• Other comprehensive income includes changes in revaluation surplus, remeasurements of the net defined benefit liability, unrealized gains and losses on FVOCI investments
• Reclassification adjustments are amounts reclassified from OCI to profit or loss
• Total comprehensive income includes all non-owner changes in equity. It comprises profit or loss and other comprehensive income
• Expenses may be presented using either the Nature of expense or the Function of expense method. Additional disclosure is required when the function of expense method is used
• OCI may be presented net or gross of related taxes
• Items included in Other Comprehensive Income (OCI)

  • Changes in revaluation surplus
  • Remeasurements of the net defined benefit liability
  • Unrealized gains and losses on FVOCI investments
  • Translation gains and losses on foreign operation
  • Effective portion of gains and losses on hedging instruments in a cash flow hedge
• Dividends are disclosed either in the statement of changes in equity or in the notes
• Presenting extraordinary items in the financial statements including the notes is prohibited
• The notes are an integral part of the financial statements. They present information regarding the basis of preparation of financial statements, information required by the PFRS, and other information not required by PFRSs but is relevant to users of financial statements
• PAS 1 encourages the understanding of an entity's financial position
• Owner changes in equity are presented in the statement of changes in equity. Non-owner changes in equity are presented in the statement of comprehensive income
• When presenting financial statements, it is necessary to present information for the current period and the immediate prior period
• Deferred tax assets and liabilities are recognized as separate line items if they are expected to reverse within the same entity and within one year from the end of the reporting period
• Reclassification adjustments are used to transfer amounts from profit or loss to other comprehensive income
• PAS 1 does not prescribe the order or format for presenting items in the financial statements
• If total comprehensive income is P120, other comprehensive income is included in this amount
• The scope of PAS 1 includes the preparation and presentation of financial statements