Chapter 2 - Format of financial statements

Question 1

What international accounting standards are we concerned with in this chapter?

Answer 1

• IAS 1 — Presentation of Financial Statements

Question 2

Briefly outline what IAS1 states?

Answer 2

IAS1 sets out overall requirements for the presentation of financial statements, guidelines for their structure and minimum requirements for their content. It requires an entity to present a complete set of financial statements at least annually, with comparative amounts for the preceding year (including comparative amounts in the notes). A complete set of financial statements comprises:

• a statement of financial position as at the end of the period;
• a statement of profit and loss and other comprehensive income for the period (or two separate statements).
• a statement of changes in equity for the period;
• a statement of cash flows for the period;
• notes to the financial statements (accounting policies and supporting information)

Question 3

What are the key principles of IAS1? Define each (8)

Answer 3

Question 4

PROFORMAS FOR: SOFP, SOPL, CASHFLWO, SOCIE, NOTES