IAS 1 - Presentation Of Financial Statements

Question 0

What are the general principles of IAS 1?

Answer 0

• Fair Presentation
• Accruals Concept
• Consistency
• Comparative Information
• Material & Aggregation
• Offsetting
• Going Concern

Question 1

What are the components of Financial Statements?

Answer 1

• Statement of Financial Position
• Statement of Comprehensive Income
• Statement of Changes in Equity
• Statement of of Cash flows
• Notes

Question 2

Explain Going Concern as principle

Answer 2

Financial Statements should be prepared on going concern basis unless the management intends to liquidate.
When management does not prepare on a going concern basis it should disclose the reason why.

Question 3

What is the comparison of IAS 1 and FRS 3 under UK GAAP?

Answer 3

UNDER FRS 3 : -
“Super exceptional” items should be presented separately on the face of the profit & loss account.

UNDER IAS 1 : -
Does not contain the term “exceptional item” but simply states that material items must be disclosed seperately

UNDER FRS 3 : -
Requires separate presentation of the profit & loss account and the statement of total recognised gains and loss.

UNDER IAS 1 : -
Allows a single statement of comprehensive income which combines both.

UNDER FRS 3 : -
Requires a note of historical cost profit & losses

UNDER IAS 1 : -
Note such requirement