IAS 1 - Presentation of Financial Statements

Question 1

complete set of financial statements

Answer 1

1) SOFP
2) SOPL and other comprehensive income
3) Statement of changes in equity
4) Statement of cash flows
5) accounting policies and explanatory notes
6) comparative information for the preceding period

Question 2

accounting for IAS 1

Answer 2

• Requires compliance with:
• accounting concepts
• offsetting
• frequency of reporting
• comparative information

Question 3

offsetting

Answer 3

-generally not permitted to set off assets and liabilities, or income and expenses against each other in order to show a net figure

• Example:
• cash at bank is not netted off against a bank overdraft

Question 4

frequency of reporting

Answer 4

-Financial statements are prepared at least annually

• If the reporting period changes
• the financial statements will be for a period longer or shorter than one year
• the entity must give the reason for the change
• the entity must disclose that the amounts in the financial statements are not entirely comparable with those of previous periods

Question 5

comparative information

Answer 5

A requirement to show the figures from previous periods for all amounts shown in the financial statements in order to help users of the statements