IAS 1 - Presentation of Financial Statements

Question 1

According to IAS 1 Presentation of Financial Statements, what are the Components of financial statements?

Answer 1

According to IAS 1 Presentation of Financial Statements,

A complete set of financial statements has the following components:

• (B.S) Statement of financial position (B.S)
• (SPLOCI) Statement of profit or loss and other comprehensive income
  
  • (or P&L and separate OCI)
• Changes in Equity
• Cash Flows
• Accounting policies note and other explanatory notes.
• Other reports and statements in the annual report are outside the scope of IAS 1, such as a:
  
  • Financial Review,
  • Environmental Report)

Question 2

How to identify Current liabilities and assets?

Answer 2

The statement of financial position

Assets and Liabilities must be classified as current on the statement of financial position if it:

• Asset is realised or consumed during the entity’s normal trading cycle
• Liability is settled during the entity’s normal trading cycle
• Held for trading
• Will be realised within 12 months of the reporting date.

All other assets are classified as non-current.
Liabilities
IAS 1 says that an entity must classify a liability as current on the statement of financial position if it:

• , or
• held for trading, or
• will be settled within 12 months of the reporting date.

All other liabilities are classified as non-current.

Question 3

to be completed

Answer 3

The statement of profit or loss and other comprehensive income

Other comprehensive income (OCI) are income and expenses recognised
outside of profit or loss, as required by particular IFRS Standards.
Total comprehensive income (TCI) is the total of the entity’s profit or loss and
other comprehensive income for the period.