International Accounting Standard 1: Financial statements

IAS 1 regarding financial statements, accounting terms going concern, accrual basis

IAS 1 Financial statements

In this article, we'll be talking about the IAS 1 presentation of financial statements that one of the basic standards applicable for all reporting entities.

because it sets overall requirements for the presentation of the financial  statements guidelines for this structure and requirements today minimum content purpose of the financial statements is 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 in order to follow this purpose is one list which should be included in the complete set of financial statements.

• Statement of financial position or balance sheet. 
• Statement of comprehensive income.
• Statement of changes in equity statement.
• Statement of cash flows and notes.

 The financial statements that reveal some information in addition to numerical statements
statement of cash flows is covered separately by the standard is 7.

IAS 1 explains general features of the financial statements those are

Fair presentation and compliance with IFRS

this is fulfilled when financial statements are compliant with IFRS in all material respects the information presented is relevant reliable comparable understandable with all necessary disclosures it's set by the standards

Going concern

the company is able to continue as a going concern in foreseeable future at least 12 months if
not the financial statements must reflect such situation.

Accrual basis

that means the transactions must be recognized when they occur and not when the cash is received or paid.

Materiality and aggregation

Each material item should be presented separately and immaterial amounts should be aggregated with amounts of a similar nature or function and not presented separately.

Offsetting

as it's an liability should not be offset Excel when offsetting is required or permitted by another standard.

Frequency of reporting

Complete set of financial statements shall be presented at least annually.

Comparatives information.

comparative information from previous period should be disclosed for all numbers in the financial statements and also in narrative and descriptive information when relevant.

Consistency of presentation 

while financial statements must be presented in the same way as in the previous period.

Statement of Financial position

disclosed as non current or current remember current is part of the normal working capital cycle so usually that's going to be a year whereas non current is anything more than a year so again remember when you're splitting loans etc. you need to think about what's gonna be payable this year and last year and again for receipt was M receivables which will be current not only that but you've got things like leases and leases need to be split between current and non-current.

Statement of comprehensive income

Remember here you've got your profit and loss but you've also got your other comprehensive income and again this is a big issue all their comprehensive income what is it remember this is things that don't hit the P&L there's no real overriding rule as to why that is but it's just certain standards say that this goes to other comprehensive income it's usually for movements in reserves looking at things like a revaluation of a non-current asset foreign exchange translations certain pension movements those sorts of things go to other comprehensive income you can either have them combined or you can have them separate okay so you can show P&L plus other comprehensive income giving total offensive income or you can have your Marginal PL and other comprehensive income

Statement of cash flows

just looking at your cash flows and all the disclosure notes need to give enough detail so that it's relevant to the users other concepts that you should be aware of the examiner may well focus on accruals concept is in there and going concern is in there these are just overriding concepts. you've also got to have comparatives.

Disclosures

If you have restructuring and impairment losses material items got to be disclosed somewhere in the notes or on the face of the financial statements .