1. International Accounting Standard 1
Presentation of Financial Statements

2. Objective
Basis for presentation of general purpose financial statements to ensure comparability with the entity’s financial statements of previous periods and with the financial statements of other entities
Overall requirements for presentation of financial statements, guidelines for their structure and minimum requirements for their content

3. Scope Financial Statements in accordance with IFRS
Interim Financial Reporting (IAS 34) – Only Para applies
All entities – CSF / SFS (IAS 27)
Terminology used suitable for profit oriented entities
Entities not having equity – FS presentation of members’ or unit holders’ interests

4. List of IFRS
IFRS 1
First-time Adoption of International Financial Reporting Standards
IFRS 2
Share-Based Payment
IFRS 3
Business Combination
IFRS 4
Insurance Contracts
IFRS 5
Non-Current Assets Held for Sale and Discontinued Operations
IFRS 6
Exploration for and Evaluation of Mineral Resources
IFRS 7
Financial Instruments- Disclosures
IFRS 8
Operating Segment

5. List of IAS(IFRS) IAS 1 Presentation of Financial Instruments IAS 2
Inventories
IAS 7
Cash Flow Statement
IAS 8
Accounting Policies, Changes in Accounting Estimates and Errors
IAS 10
Events after Reporting Date
IAS 11
Construction Contracts
IAS 12
Income Taxes
IAS 16
Property, Plant and Equipment
IAS 17
Leases
IAS 18
Revenue
IAS 19
Employee Benefits
IAS 20
Accounting for Government Grant and Disclosure of Government Assistance
IAS 21
The Effect of Changes in Foreign Exchange Rate
IAS 23
Borrowing Cost
Contd…

6. IAS 24
Related Party Disclosure
IAS 26
Accounting and Reporting by retirement Benefits Plan
IAS 27
Consolidated and Separate Financial Statements
IAS 28
Investments in Associates
IAS 29
Financial Reporting in Hyperinflationary Economies
IAS 31
Interest in Joint Ventures
IAS 32
Financial Instruments: Presentation
IAS 33
Earning Per Share
IAS 34
Interim Financial Reporting
IAS 36
Impairment of Asset
IAS 37
Provisions, Contingent Liabilities and Contingent Assets
IAS 38
Intangible Assets
IAS 39
Financial Instruments: Recognition and Measurement
IAS 40
Investment Property
IAS 41
Agriculture

7. Definitions General Purpose Financial Statements
Those intended to meet the needs of users who are not in a position to require an entity to prepare reports tailored to their particular information needs
Impracticable
Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort do so.
IFRSs
Standards and Interpretations adopted by the IASB. They comprises: IFRS, IAS, Interpretation by IFRIC, SIC.
Material Omissions or misstatements of items
Are material if they could, individually or collectively, influence the economic decisions that users make on the basis of financial statements.
Notes
Contain information in addition to that presented in the statement of financial position, statement of comprehensive income, separate income statement(if presented), statement of changes in equity and statement of cash flows.
Other comprehensive income
Comprises items of income and expense (including reclassification adjustments) that are not recognized in profit or loss as required or permitted by other IFRSs.

8. Components of other comprehensive income
Changes in revaluation surplus (IAS 16 Property, Plant and Equipment and IAS 38 Intangible Asset)
Actuarial gains and losses on defined benefit plans recognized in accordance with para 93A of IAS 19 Employee Benefits
Gains and losses arising from translating the financial statements of foreign operations (IAS 21 The Effects of Changes in Foreign Exchange Rates
Gain and losses on remeasuring available for sale financial assets (IAS 39 Financial Instruments: Recognition and Measurement)
The effective portion of gains and losses on hedging instruments in cash flow hedge (IAS 39)

9. Definitions Owners Are holders of instruments classified as equity.
Profit or Loss
Is the total of income less expenses, excluding the components of other comprehensive income.
Reclassification adjustments
are amounts reclassified to profit or loss in the current period that were recognized in the current or previous periods.
Total Comprehensive Income
Is the change in equity during a period resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners.
Total comprehensive income comprises all components of ‘profit or loss’ and of ‘other comprehensive income’.

10. Complete set of financial statements
A statement of financial position as at the end of the period
A statement of comprehensive income for the period
A statement of changes in equity for the period
A statement of cash flow for the period
Notes, comprising a summary of significant accounting policies and other explanatory information
A statement of financial position as at the beginning of the earliest comparative period

11. General Features Fair presentation and compliance with IFRSs
Going Concern
Accrual basis of accounting
Materiality and aggregation
Offsetting
Frequency of reporting
Comparative Information
Consistency of presentation

12. Fair presentation and compliance with IFRS
Financial position, financial performance and cash flow
Explicit and unreserved statement of compliance
Selection and application of Accounting policies (IAS 8), presenting information to provide relevant, reliable, comparable and understandable information and Additional Information
Inappropriate Accounting Policies

13. Fair presentation and compliance with IFRS
Departure from IFRS – Extreme Circumstances' (Disclosure)
Management conclusion about fair presentation
Compliance with IFRS, except departure from particular requirement to achieve fair presentation
Title of departed IFRS, nature of departure, treatment IFRS requires, reason why treatment would mislead
Financial effect of the departure on each item
Departure from requirement of IFRS in prior period
Departure from IFRS but regulatory framework prohibits departure
Title of IFRS, nature of the requirement, reason
The adjustments to each item in the financial statements that management has concluded would be necessary to achieve fair presentation

14. Going Concern Assessment of entity’s ability by management
GCB unless contrary intention or no realistic alternative to liquidation
Disclosure of Uncertainties
Disclosure when financial statements are not on going concern basis

15. Accrual Basis of Accounting
An entity shall prepare its financial statements, except for cash flow information using the accrual basis of accounting.

16. Materiality and aggregation
An entity shall present separately each material class of similar items. It shall present separately items of a dissimilar nature or function unless they are immaterial.

17. When offsetting reflects substance of the transaction or other event
An entity shall not offset assets and liabilities or income and expense, unless required or permitted by an IFRS except:
When offsetting reflects substance of the transaction or other event
Detracts from ability of users both to understand the transaction, other events and conditions that have occurred and to assess the entity’s future cash flows.

18. Frequency of reporting
At least annually
In case change in end of reporting period and presents financial statement for period longer or shorter than one year – disclosure
The reason for using a longer or shorter period
The fact that amounts presented in the financial statements are not entirely comparable

19. Comparative Information
For all amounts reported in current period’s financial statements except when IFRSs permit or require otherwise
When the entity changes the presentation or classification of items – Reclassification of comparative amounts – Disclosure:
The nature of transaction
The amount of each item or class of items that is reclassified; and
The reason for reclassification
When impracticable to reclassify comparative amounts, an entity shall disclose:
The reason for not reclassifying the amounts;
The nature of adjustments that would have been made if the amounts had been reclassified

20. Consistency of presentation
An entity shall retain the presentation and classification of items in financial statements from on period to the next unless:
It is apparent, following a significant change in the nature of the entity’s operations or a review of its financial statements, that another presentation or classification would be more appropriate having regard to the criteria for the selection and appropriation of accounting policies in IAS 8 or
An IFRS requires a change in presentation

21. Structure and content Introduction
Identification of the financial statements
Statement of financial position
Statement of comprehensive income
Statement of changes in equity
Statement of cash flows
Notes
Other disclosures

22. Identification of the financial statements
An entity shall clearly identify
the financial statements and distinguish them from other information in the same published document
each financial statement and the notes.
Display of information prominently, and repeat it when necessary for the information presented to be understandable:
The name of reporting entity or other means of identification, and changes in that information from the end of the preceding reporting period
Whether the financial statements are of an individual entity or a group of entities
The date of the end of the reporting period or the period covered by the set of financial statements or notes
The presentation currency, as defined in IAS 21; and
The level of rounding used in presenting amounts in the financial statements.

23. Statement of financial position
Information to be presented in the statement of financial position
Current / non current distinction
Current assets
Current liabilities
Information to be presented either in the statement of financial position or in the notes

24. Information to be presented in the statement of financial position
Property, plant and equipment
Investment property
Intangible assets
Financial asses
Investments accounted for using the equity method
Biological assets
Trade and other receivables
Cash and cash equivalents
Non current assets held for sale and discontinued operations
Trade and other payables
Provisions
Financial liabilities
Liabilities and assets for current tax as defined in IAS 12
Deferred tax liabilities and deferred tax assets as defined in IAS 12
Liabilities included in disposal group classified as held for sale
Non controlling interests, presented within equity; and
Issued capital and reserves attributable to owners of the parent

25. Information to be presented in the statement of financial position
Additional Line items, heading and subtotals in the statement of financial position when such presentation is relevant to an understanding of the entity
Deferred tax assets (liabilities) not to be classified as current assets (liabilities)

26. Current / non current distinction
Presentation of financial position by classification in current and non current assets, and current and non-current liabilities except:
when a presentation based on liquidity provides information that is reliable and more relevant.
When exception applies, in order of liquidity.
Disclose amount expected to be recovered or settled after more than twelve months for each asset and liability line item that combines amounts expected to be recovered or settled:
No more than twelve months after the reporting period, and
More than twelve months after the reporting period

27. Current assets
Entity expects to realize the asset, or intends to sell or consume, in its normal operating cycle;
It holds the asset primarily for the purpose of trading;
It expects to realize the asset within twelve months after reporting period; or
The asset is cash or cash equivalent (IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period
All other assets as non current

28. Current liabilities
Entity expects to settle the liability in its normal operating cycle;
It holds the liability primarily for the purpose of trading;
The liability is due to be settled within twelve months after reporting period; or
The entity does not have an unconditional right to defer settlement of liability for at least twelve months after the reporting period
All other liabilities as non current

29. Specific Discussion (Para 70-76)
Trade payables, accrual for employees and other operating costs – Normal operating cycle
Other current liabilities – financial liabilities, bank overdrafts, current portion of NCL, dividends payable, income taxes and other non trade payables – Whether due for settlement within twelve months.
Original term of liability, refinance, reschedule agreement after reporting period
Discretion of entity to refinance / roll over obligation
Breach of provision of long term loan arrangement
Events after the Reporting Period (IAS 1)

30. Information to be presented either in the statement of financial position or in the notes
Entity shall disclose, either in the statement of financial position or in the notes, further sub classification of the line items presented, classified in a manner appropriate to the entity’s operations.
Sub-classification depends on the requirement of IFRSs, size, nature, functions of the amounts involved.
Information to be disclosed for each class of share capital
Description of the nature and purpose of each reserve within equity

31. Statement of comprehensive income
Information to be presented in the statement of comprehensive income
Profit or loss for the period
Other comprehensive income for the period
Information to be presented in the statement of comprehensive income or in notes

32. Analysis of Expenses ‘Nature of expenses’ method
‘Function of expenses’ method

33. Statement of Changes in equity
Total comprehensive income for the period
Effect of retrospective application or retrospective restatement (IAS 8)
Reconciliation between the carrying amount at the beginning and the end of the period
Dividend distributed per share

34. Statement of cash flows – IAS 7

35. Notes Structure Disclosure of Accounting Policies
Sources of estimation uncertainty
Capital
Other disclosures

36. Notes - Structure
Basis of preparation of the financial statements and the specific accounting policies
Information required by IFRSs that is not presented elsewhere in the financial statements
Information relevant to an understanding of financial statements
Systemic manner, cross reference

37. Notes: Disclosure of Accounting Policies
Measurement basis used in preparing the financial statements
Other accounting policies used that are relevant to an understanding of FS
Judgments that management has made in the process of applying the entity’s accounting policies

38. Notes: Sources of estimation uncertainty
Information about the assumption
Major sources of estimation uncertainty
Capital
An entity shall disclose information that enables users of its financial statements to evaluate the entity’s objectives, policies and processes for managing capital

39. Notes: Other disclosures
An entity shall disclose in the notes:
Dividend proposed or declared
Amount of any cumulative preference dividends not recognized
Domicile and legal form of the entity, its country of incorporation and the address of its registered office
Description of nature of the entity’s operations and its principal activities
Name of the parent and the ultimate parent of the group