This blog is written by Mr. Omar Rafeh Chughtai, Senior Associate Taxation. Please read this blog and provide your valued comments.
IAS 1 Presentation of financial statements
IAS 1 sets out the overall requirements for the presentation for financial statements, their minimum requirements and their structure. This standard also explains the general features of financial statements like accrual basis of accounting, going concern, comparative information and consistency of presentation. This standard applies to all general purpose financial statements that are prepared and presented in accordance with international financial reporting standards. General purpose financial statements are made for people who are not in a position to require financial reports tailored to their particular needs.
This standard requires complete financial statements, which means a statement of financial position (balance sheet), a statement of profit and loss, a statement of changes in equity and a statement of cash flows.
IAS 1 requires identification of the F/S and differentiate them from other information in the same published documents. Every element of the F/S should contain the name of reporting entity, whether the F/S are of an individual or a group, the date of reporting and the period covered, currency and the level of rounding off.
Financial statements are prepared assuming that the entity is a going conern and will continue to exist in the forseeable future.
Accrual basis of accounting:
IAS 1 requires that an entity should prepare its financial statements excluding statement of cash flows using the accruals basis of accounting
Omar Rafeh Chughtai