Introduction to published accounts

Question 1

IAS 1 Presentation of Financial Statements states that a complete set of financial statements comprises:

Answer 1

• a statement of financial position
  and either
  – a statement of profit or loss and other comprehensive income, or
  – a statement of profit or loss plus a statement showing other comprehensive income
• a statement of changes in equity
• a statement of cash flows
• accounting policies and explanatory notes.

Question 2

Exceptional items is the name often given to

Answer 2

material items of income and expense of such size, nature or incidence that disclosure is necessary in order to explain the performance of the entity.

Question 3

The accounting treatment of exceptional items is to:

Although…

Answer 3

include the item in the standard statement of profit or loss line

disclose the nature and amount in the notes.

In some cases it may be more appropriate to show the item separately on the face of the statement of profit or loss.