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LACPALACPA-- IFRS SeminarsIFRS Seminars

IAS 1IAS 1PresentationPresentationof Financialof FinancialStatementsStatements

Presented byPresented by Roger Nasr,Roger Nasr,

DeloitteDeloitte

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IAS 1

Structure of the standardStructure of the standard

Objective and scopeObjective and scope

Purpose of Financial statementsPurpose of Financial statementsComponents of Financial StatementsComponents of Financial Statements

DefinitionsDefinitions

Overall considerationsO

verall considerationsStructure and contentStructure and content

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Objective and scopeObjective and scope

ObjectiveObjective

to prescribe basis for presentation of Generalto prescribe basis for presentation of General

Purpose financial statementsPurpose financial statements in order to ensure comparabilityin order to ensure comparability

ScopeScope

all general purpose financial statementsall general purpose financial statements

prepared under IFRSprepared under IFRS not condensed interim financial informationnot condensed interim financial information

IAS 1

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Purpose of Financial statementsPurpose of Financial statements

Structured Presentation ofStructured Presentation of

Financial PositionFinancial Position

Financial PerformanceFinancial Performance Results of Management Stewardship of theResults of Management Stewardship of the

resources entrusted to itresources entrusted to it

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Components, complete setComponents, complete set

of financial statementsof financial statements Balance sheetBalance sheet

Income statementIncome statement

Statement of changes in equityStatement of changes in equity

Cash flow statementCash flow statement

NotesNotes

Accounting policiesAccounting policies Explanatory notesExplanatory notes

IAS 1

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DefinitionsDefinitions

Impracticable requirementImpracticable requirement Entity can not apply it after making every reasonableEntity can not apply it after making every reasonable

efforteffort

IFRSIFRS IFRS, IAS, IFRIC or SICIFRS, IAS, IFRIC or SIC

MaterialMaterial Omission or misstatement is material if it canOmission or misstatement is material if it can

influence the economic decision of usersinfluence the economic decision of users

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Overall considerationsOverall considerations

Fair presentationFair presentation

achieved through application of IFRSachieved through application of IFRS

disclose compliance with IFRSdisclose compliance with IFRS

full compliance with IFRS requiredfull compliance with IFRS required

application before effective dateapplication before effective date disclose that factdisclose that fact

true and fair overridetrue and fair override only in extremely rare circumstancesonly in extremely rare circumstances

IAS 1

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Fair presentationFair presentation

In extremely rare circumstances, where complianceIn extremely rare circumstances, where compliance

with a Standard would be misleading so it wouldwith a Standard would be misleading so it would

conflict with objective set out in the frameworkconflict with objective set out in the framework departure is permissible, if regulatory frameworkdeparture is permissible, if regulatory framework

requires or does not prohibitrequires or does not prohibit

Specified disclosure requiredSpecified disclosure required

IAS 1

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Going concernGoing concern no intention to liquidate or to cease tradingno intention to liquidate or to cease trading

Disclose in case of Material uncertaintyDisclose in case of Material uncertainty

Accrual basisAccrual basis -- transactions and eventstransactions and events are recognised when they occur, andare recognised when they occur, and

in the periods to which they relatein the periods to which they relate

ConsistencyConsistency presentation & classification be retainedpresentation & classification be retained

Unless change in nature of operations necessitates anotherUnless change in nature of operations necessitates anotherpresentationpresentation

A standard or an interpretation requires a changeA standard or an interpretation requires a change

IAS 1

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Materiality & aggregationMateriality & aggregation materialmaterial presentpresent separatelyseparately

immaterialimmaterial aggregate with other itemsaggregate with other items

OffsettingOffsetting Assets/Liabilities, and Income and expenses shall not be offsetAssets/Liabilities, and Income and expenses shall not be offset

unless required or permittedunless required or permitted

Comparative informationComparative information incl. narrative & descriptive informationincl. narrative & descriptive information

IAS 1

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Structure and contentStructure and content

GeneralGeneral

identification of financial statementsidentification of financial statements

clearly distinguished from other informationclearly distinguished from other information

reporting periodreporting period at least annually,at least annually,

to explain if longer or shorterto explain if longer or shorter

Information requiredInformation required

Name and change, if anyName and change, if any

Individual or group financialsIndividual or group financials Period coveredPeriod covered

CurrencyCurrency

Level of roundingLevel of rounding

IAS 1

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Balance sheetBalance sheet

current vs. noncurrent vs. non--current distinctioncurrent distinction

or, classify based on liquidity if moreor, classify based on liquidity if morerelevantrelevant

obligatory line items on face of B/Sobligatory line items on face of B/S

disclosure required on face or in notesdisclosure required on face or in notes relevant subrelevant sub--classifications of items aboveclassifications of items above

information on share capital and reservesinformation on share capital and reserves

IAS 1

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Minimum Items on face of Balance SheetMinimum Items on face of Balance Sheet Property, Plant and EquipmentProperty, Plant and Equipment

Investment PropertyInvestment Property

Intangible AssetsIntangible Assets

Financial AssetsFinancial Assets

Investments Accounted for using the equity methodInvestments Accounted for using the equity method

Biological AssetsBiological Assets

InventoriesInventories

Trade and Other receivablesTrade and Other receivables

Cash and Cash EquivalentsCash and Cash Equivalents

Trade and Other PayablesTrade and Other Payables

ProvisionsProvisions

Financial liabilitiesFinancial liabilities

Liabilities and Assets for current taxLiabilities and Assets for current tax

Deferred tax assets and liabilitiesDeferred tax assets and liabilities

Minority interest within equityMinority interest within equity

Issued Capital and reserves attributable to equity holders of the parentIssued Capital and reserves attributable to equity holders of the parent


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Current vs. nonCurrent vs. non--current Assetscurrent Assets

Realised/settledRealised/settled in the normal course ofin the normal course of

operating cycle or within 12 month of theoperating cycle or within 12 month of thebalance sheet datebalance sheet date

Held primarily for the purpose of being tradedHeld primarily for the purpose of being traded

Unrestricted cash or a cash equivalentUnrestricted cash or a cash equivalent

All other assets are nonAll other assets are non--CurrentCurrent

IAS 1

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Current Vs. non Current LiabilitiesCurrent Vs. non Current Liabilities Settled in the normal course of operating cycle or due to beSettled in the normal course of operating cycle or due to be

settled within 12 month of the balance sheet datesettled within 12 month of the balance sheet date

Held primarily for the purpose of being tradedHeld primarily for the purpose of being traded

No unconditional right to defer settlement for at least 12 monthsNo unconditional right to defer settlement for at least 12 months postpost--balance sheet events (refinancing, correction of defaults) dobalance sheet events (refinancing, correction of defaults) do

not affect current vs. nonnot affect current vs. non--current classificationcurrent classification

All other Liabilities are nonAll other Liabilities are non--CurrentCurrent

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Income statementIncome statement obligatory line items on face of I/Sobligatory line items on face of I/S

To show as allocationTo show as allocation

Profit or loss attributable to Minority InterestProfit or loss attributable to Minority Interest

Profit or loss attributable to equity holders of the parentProfit or loss attributable to equity holders of the parent

expenses analysed on basis ofexpenses analysed on basis of

naturenature

FunctionFunction

Dividends should be disclosed plus per share (or in statementDividends should be disclosed plus per share (or in statementof changes in equityof changes in equity

IAS 1

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Minimum Items on the face of the income statementMinimum Items on the face of the income statement RevenueRevenue

Finance CostsFinance Costs

Share of profit/loss of associates accounted for at the equity methodShare of profit/loss of associates accounted for at the equity method

Tax expenseTax expense

Sum of profit or loss on discontinued operations plus gain or loss on theSum of profit or loss on discontinued operations plus gain or loss on thedisposal of discontinued operations assetsdisposal of discontinued operations assets

Profit or lossProfit or loss

No operating income/lossNo operating income/loss

No extraordinary itemsNo extraordinary items

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Income Statement presentationIncome Statement presentation

classification based on natureclassification based on nature

salaries, depreciation, transport, etcsalaries, depreciation, transport, etc

classification based on functionclassification based on function

cost of sales, distribution, administrationcost of sales, distribution, administration

IAS 1

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Statement of changes in equityStatement of changes in equity separate component of financial statementsseparate component of financial statements

On the faceOn the face (a) Profit or loss for the period(a) Profit or loss for the period

(b) gains and losses not reflected in income statement(b) gains and losses not reflected in income statement

(a)+(b) attributable to each of Minority Interest and equity holders(a)+(b) attributable to each of Minority Interest and equity holdersof the parentof the parent

also in statement or in the notesalso in statement or in the notes capital transactions with ownerscapital transactions with owners

movements in accumulated profitmovements in accumulated profit

movements in capital and reservesmovements in capital and reserves

IAS 1

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Role of statement of changes in equityRole of statement of changes in equity

broader performance indicatorbroader performance indicator

total recognised gains and losses ortotal recognised gains and losses or

comprehensive incomecomprehensive income

Cash flow statement in accordance withCash flow statement in accordance with

IAS 7IAS 7

IAS 1

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Notes to the financial statementsNotes to the financial statements

basis of preparation of financial statementsbasis of preparation of financial statements

accounting policies selectedaccounting policies selected

additional disclosure to present fairlyadditional disclosure to present fairly

other sundry disclosuresother sundry disclosures

e.g. domicile, legal form, country of incorporatione.g. domicile, legal form, country of incorporation

IAS 1

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Case study 01Case study 01

Income statement presentationIncome statement presentation

IAS 1

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Classification by functionClassification by function

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