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PAS 1 PRESENTATION of FINANCIAL STATEMENTS OBJECTIVE of PAS 1 To prescribe the basis for presentation of general purpose financial statements, to ensure comparability both with financial statements of previous periods and with the financial statements of other entities. The Standard sets out the following: - overall requirements for the presentation of financial statements; - guidelines for their structure; and - minimum requirements for their content. SCOPE The Standard shall be applied to all general purpose financial statements prepared and presented in accordance with International Financial Reporting Standards (IFRSs). General purpose financial statements are those that are intended to meet the needs of users who are not in a position to demand reports tailored to meet their particular information needs. PURPOSE OF FINANCIAL STATEMENTS 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. COMPONENTS OF FINANCIAL STATEMENTS A complete set of financial statements comprises: a) a balance sheet; b) an income statement; c) a statement of changes in equity; d) cash flow statement; e) notes to the financial statements; Management’s Responsibility - The financial statements are basically the responsibility of the company’s management. Accounting Policies - Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements. Hierarchy of Accounting Policies In descending order: a. requirements of an applicable accounting standard or an interpretation; b. management judgment/ decision that results to relevant and reliable information, considering i. requirements and guidance of similar accounting standards and interpretations; and ii. the definitions, recognition criteria and measurement bases in the Framework. OVERALL CONSIDERATIONS Fair Presentation and Compliance with IFRSs Going Concern Accrual Basis of Accounting Consistency of Presentation Materiality and Aggregation Offsetting Comparative Information FAIR PRESENTATION AND COMPLIANCE WITH IFRS Achieved by: - Complying with all the applicable requirements of PFRS; - Presenting information that meets the qualitative characteristics - Providing additional disclosures, when necessary FAIR PRESENTATION AND COMPLIANCE WITH IFRS An entity whose financial statements comply with IFRS shall make an explicit and unreserved statement of such compliance in the notes. Financial statements shall not be described as complying with IFRS unless
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This note was uploaded on 11/30/2011 for the course ECON 310 taught by Professor Johnsmith during the Spring '11 term at Kentucky.

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