IFRS / IAS standards assist in identifying and recognising business transactions for accounting purposes, and the required reporting of those transactions in a set of financial statements.
This session focuses on IAS 1, highlighting various aspects of financial statements, and what needs to go into an IFRS set, including:
• the requirements in preparing each individual statement i.e., balance sheet, income statement, notes, etc.
• underlying principles, like going concern, the need for comparatives, inter alia,
• structure / form / minimum content of individual statements, and
• other disclosures, for example, judgement and estimation uncertainty, dividends, amongst others
IAS 1 provides guidance in preparing IFRS-compliant financial statements, and the relevant content covered in this session includes:
• Pervasive principles:
o Going concern, accrual basis, comparatives, fair presentation, materiality and aggregation
• Minimum statements included in a set of financial statements, and the minimum required line items within each statement, for:
o Balance sheet,
o Income statement,
o Statement of changes in equity, and
o Notes to the financial statements
o NOTE: Statement of cash flows is dealt with separately in IAS 7
• Accounting policy elections in terms of statements to be presented
• Other key disclosures,
o Judgement / key assumptions
o Dividends
o Entity particulars
• Appropriate terminology / naming convention used in financial statements
IAS 1 provides guidance in preparing IFRS-compliant financial statements, and the relevant content covered in this session includes:
• Pervasive principles:
o Going concern, accrual basis, comparatives, fair presentation, materiality and aggregation
• Minimum statements included in a set of financial statements, and the minimum required line items within each statement, for:
o Balance sheet,
o Income statement,
o Statement of changes in equity, and
o Notes to the financial statements
o NOTE: Statement of cash flows is dealt with separately in IAS 7
• Accounting policy elections in terms of statements to be presented
• Other key disclosures,
o Judgement / key assumptions
o Dividends
o Entity particulars
• Appropriate terminology / naming convention used in financial statements
NOT COVERED: Statement of Cash Flows as it is dealt with separately under IAS 7
