IAS 1 – Presentation of Financial Statements
Objective
IAS 1 sets out the overall requirements for the presentation of financial statements, guidelines for
their structure, and minimum content requirements.
Scope
Applies to all general-purpose financial statements prepared in accordance with IFRS.
Complete Set of Financial Statements
1. Statement of Financial Position (Balance Sheet) as at the end of the period
2. Statement of Profit or Loss and Other Comprehensive Income
3. Statement of Changes in Equity
4. Statement of Cash Flows
5. Notes (including accounting policies and explanatory information)
6. Comparative information for the preceding period
7. Third balance sheet if retrospective restatement is made
Underlying Principles
• Fair presentation and compliance with IFRS
• Going concern assumption
• Accrual basis of accounting
• Materiality and aggregation
• No offsetting unless required or permitted
• Frequency: at least annually
Statement of Financial Position (Balance Sheet)
Key line items:
• Assets: Current vs Non-current
• Liabilities: Current vs Non-current
• Equity: Share capital, reserves, retained earnings
Statement of Profit or Loss & Other Comprehensive Income
Can be presented as:
• Single statement (P&L; and OCI together)
• Two statements (separate P&L; and OCI)
Must show:
• Revenue
• Finance costs
• Share of profit/loss from associates/joint ventures
• Tax expense
• Profit or loss
• Each component of OCI
Statement of Changes in Equity
Shows:
• Total comprehensive income for the period
• Effects of retrospective application/restatement
• Reconciliation of opening & closing balances for each equity component
Notes
• Provide accounting policies
• Support detailed information for FS line items
• Disclose judgments and key assumptions
Comparative Information
• At least one preceding period must be presented
• If retrospective restatement is made → present 3 balance sheets (beginning, end of current, and
prior period)
Key Disclosure Requirements
• Name of reporting entity
• Whether FS are consolidated or separate
• Reporting period
• Presentation currency
• Level of rounding used
