IAS 1 Presentation of Financial statements Lecture Notes (teacher copy).pdf

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1MACC7001 Financial Accounting Foundation 2021-22Dr. Winnie S.C. LeungIAS 1 FINANCIAL STATEMENT PRESENTATIONLEARNING OBJECTIVESDescribe the main components of financial statementsApply the requirements for the classification of items reported in the statement of financial positionApply the requirements for the presentation of information in the statement of profit or loss and othercomprehensive incomeApply the requirements for the presentation of information in the statement of changes in equityDiscuss other disclosures required by IAS 1 in the notes to the financial statementsComponents of financial statementsA complete set of financial statements is defined in paragraph 10 of IAS 1Presentation of FinancialStatementsand comprises:a statement of financial positiona statement of profit or loss and other comprehensive incomea statement of changes in equitya statement of cash flowsnotes, comprising significant accounting policies and other explanatory informationcomparative information, such as financial statements and notes for the preceding periodStatement of financial positionThe statement of financial position presents a structured summary of the assets, liabilities and equity ofan entity, to be classified as current or non-current (IAS 1.60).Current assetsare described in IAS 1.66 as those that:a.are expected to be realised, sold or consumed within the entity's normal operating cycle;b.are held for trading;c.are expected to be realised within 12 months after the reporting period; ord.are cash or cash equivalents.Current liabilitiesare described in IAS 1.69 as those that:a.are expected to be settled within the entity's normal operating cycle;b.are held for trading;c.are due to be settled within 12 months after the reporting period; ord.the entity does not have an unconditional right to defer for at least 12 months after thereporting period.Provisions for claims and litigations is a typical example of aliability when entities usually do not have such a right and therefore these provisionsshould be classified as current even if the court case is expected to last for many years.
2MACC7001 Financial Accounting Foundation 2021-22Dr. Winnie S.C. LeungHKAS 1 - Illustrative presentation of financial statementsXYZ GroupStatement of financial position as at 31 December 20X7 (in thousands of currency units)
3MACC7001 Financial Accounting Foundation 2021-22Dr. Winnie S.C. LeungStatement of profit or loss and other comprehensive incomeProfit or loss + Other Comprehensive Income = Total Comprehensive IncomeIAS 1 require that the statement of profit or loss and other comprehensive income be presented eitheras:-a single statement with a profit or loss section and another section for comprehensive income or-a statement of profit or loss and a separate statement presenting comprehensive income.

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Term
Fall
Professor
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Tags
Balance Sheet, Generally Accepted Accounting Principles, Financial Accounting Foundation, Dr Winnie S C Leung

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