Presentation of published financial statements

Question 1

IAS1 Presentation of Financial Statements - What is the objective of financial statements?

Answer 1

To provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions.

Question 2

What 5 things should be included in order for Financial Statements to be presented fairly and comply with IFRS Standards?

Answer 2

• Transactions and other events should present fairly the financial position, financial performance and cash flows of an entity
• Applicable IFRS have been applied
• Accounting policies have been selected and applied in accordance with IAS8 Accounting Policies, Changes in Accounting Estimates and Errors.
• Information has been presented in manner that provides relevant,reliable, comparable and understandable information
• Additional disclosures have been provided when compliance with specific requirements in IFRS standards is insufficient to enable users to understand the impact of particular transactions.

Question 3

What is the Going Concern basis?

Answer 3

It assumes that the entity will continue to trade for the foreseeable future. At least for 12 months.

Question 4

What is the Accrual Basis of Accounting?

Answer 4

An entity shall prepare its financial statements, except for cash flow information, using accrual basis of accounting.