1. LACPA- IFRS Seminars IAS 1 Presentation of Financial Statements
Presented by – Roger Nasr, Deloitte

2. Structure of the standard
IAS 1
Structure of the standard
Objective and scope
Purpose of Financial statements
Components of Financial Statements
Definitions
Overall considerations
Structure and content

3. Objective and scope Objective Scope
IAS 1
Objective and scope
Objective
to prescribe basis for presentation of “General Purpose” financial statements
in order to ensure comparability
Scope
all general purpose financial statements prepared under IFRS
not condensed interim financial information

4. Purpose of Financial statements
Structured Presentation of
Financial Position
Financial Performance
Results of Management Stewardship of the resources entrusted to it

5. Components, complete set of financial statements
IAS 1
Components, complete set of financial statements
Balance sheet
Income statement
Statement of changes in equity
Cash flow statement
Notes
Accounting policies
Explanatory notes

6. Definitions Impracticable requirement IFRS Material
Entity can not apply it after making every reasonable effort
IFRS
IFRS, IAS, IFRIC or SIC
Material
Omission or misstatement is material if it can influence the economic decision of users

7. Overall considerations
IAS 1
Overall considerations
Fair presentation
achieved through application of IFRS
disclose compliance with IFRS
full compliance with IFRS required
application before effective date
disclose that fact
true and fair override
only in extremely rare circumstances

8. Overall considerations
IAS 1
Overall considerations
Fair presentation
In extremely rare circumstances, where compliance with a Standard would be misleading so it would conflict with objective set out in the framework
departure is permissible, if regulatory framework requires or does not prohibit
Specified disclosure required

9. Overall considerations
IAS 1
Overall considerations
Going concern
no intention to liquidate or to cease trading
Disclose in case of Material uncertainty
Accrual basis - transactions and events
are recognised when they occur, and
in the periods to which they relate
Consistency
presentation & classification be retained
Unless change in nature of operations necessitates another presentation
A standard or an interpretation requires a change

10. Overall considerations
IAS 1
Overall considerations
Materiality & aggregation
material  present separately
immaterial  aggregate with other items
Offsetting
Assets/Liabilities, and Income and expenses shall not be offset unless required or permitted
Comparative information
incl. narrative & descriptive information

11. Structure and content IAS 1 General
identification of financial statements
clearly distinguished from other information
reporting period
at least annually,
to explain if longer or shorter
Information required
Name and change, if any
Individual or group financials
Period covered
Currency
Level of rounding

12. Structure and content Balance sheet
IAS 1
Structure and content
Balance sheet
current vs. non-current distinction
or, classify based on liquidity if more relevant
obligatory line items on face of B/S
disclosure required on face or in notes
relevant sub-classifications of items above
information on share capital and reserves

13. Structure and content Minimum Items on face of Balance Sheet
Property, Plant and Equipment
Investment Property
Intangible Assets
Financial Assets
Investments Accounted for using the equity method
Biological Assets
Inventories
Trade and Other receivables
Cash and Cash Equivalents
Trade and Other Payables
Provisions
Financial liabilities
Liabilities and Assets for current tax
Deferred tax assets and liabilities
Minority interest within equity
Issued Capital and reserves attributable to equity holders of the parent

14. Structure and content Current vs. non-current Assets
IAS 1
Structure and content
Current vs. non-current Assets
Realised/settled in the normal course of operating cycle or within 12 month of the balance sheet date
Held primarily for the purpose of being traded
Unrestricted cash or a cash equivalent
All other assets are non-Current

15. Structure and content Current Vs. non Current Liabilities
Settled in the normal course of operating cycle or due to be settled within 12 month of the balance sheet date
Held primarily for the purpose of being traded
No unconditional right to defer settlement for at least 12 months
post-balance sheet events (refinancing, correction of defaults) do not affect current vs. non-current classification
All other Liabilities are non-Current

16. Structure and content IAS 1 Income statement
obligatory line items on face of I/S
To show as allocation
Profit or loss attributable to Minority Interest
Profit or loss attributable to equity holders of the parent
expenses analysed on basis of
nature
Function
Dividends should be disclosed plus per share (or in statement of changes in equity

17. Structure and content
Minimum Items on the face of the income statement
Revenue
Finance Costs
Share of profit/loss of associates accounted for at the equity method
Tax expense
Sum of profit or loss on discontinued operations plus gain or loss on the disposal of discontinued operations assets
Profit or loss
No operating income/loss
No extraordinary items

18. Structure and content Income Statement presentation
IAS 1
Structure and content
Income Statement presentation
classification based on nature
salaries, depreciation, transport, etc
classification based on function
cost of sales, distribution, administration

19. Structure and content Statement of changes in equity IAS 1 On the face
separate component of financial statements
On the face
(a) Profit or loss for the period
(b) gains and losses not reflected in income statement
(a)+(b) attributable to each of Minority Interest and equity holders of the parent
also in statement or in the notes
capital transactions with owners
movements in accumulated profit
movements in capital and reserves

20. Structure and content Role of statement of changes in equity
IAS 1
Structure and content
Role of statement of changes in equity
broader performance indicator
‘total recognised gains and losses’ or
‘comprehensive income’
Cash flow statement in accordance with IAS 7

21. Structure and content Notes to the financial statements
IAS 1
Structure and content
Notes to the financial statements
basis of preparation of financial statements
accounting policies selected
additional disclosure to present fairly
other sundry disclosures
e.g. domicile, legal form, country of incorporation

22. IAS 1
Case study 01
Income statement presentation

23. Classification by function