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PAS 1 Presentation of Financial Statements

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73 views

PAS 1 Presentation of Financial Statements

credits to the author

Uploaded by

Elnathan Gabuyo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Lesson 2

PAS 1
PRESENTATION OF
FINANCIAL
STATEMENTS

MIKKAELLA ANN BLANKAS, CPA, MBA, CLSSYB


General Features of Financial
01 Statement Presentation
Components of a complete set of
02 Financial Statements

03 Statement of Financial Position

Statement of P/L, OCI and Changes in


04 Equity
05 Notes to Financial Statements
OBJECTIVE OF PAS 1

Describes the basis for presentation of general-


purpose financial statements to improve
comparability both with the entity’s financial
statements of previous period and with the financial
statements of other entities.
COMPLETE SET OF FINANCIAL STATEMENTS

1. Statement of Financial Position


2. Statement of Profit or Loss and Other Comprehensive
Income
3. Statement of Changes in Equity
4. Statement of Cash Flows
5. Notes
6. Additional Statement of Financial Position (required only
when certain instances occur)
GENERAL FEATURES

1. Fair presentation and compliance with PFRS


2. Going concern
3. Accrual Basis of Accounting
4. Materiality and Aggregation
5. Offsetting
6. Frequency of reporting
7. Comparative Information
8. Consistency of presentation
STATEMENT OF FINANCIAL POSITION
CLASSIFIED
Shows distinctions between current and noncurrent assets
and liabilities

UNCLASSIFIED (BASED ON LIQUIDITY)


Shows no distinction between current and noncurrent
items

PAS 1 does not prescribe the order or format in which an


entity presents items.
CURRENT ASSETS

An entity shall classify an asset as current when:


a. It expects to realize the asset or intends to sell or consume in
the normal operating cycle
b. It holds the asset primarily for the purpose of trading
c. It expects to realize the asset within twelve months after the
reporting period
d. The asset is cash or cash equivalent unless the asset is
restricted from being exchanged or used to settle a liability for
at least twelve months after the reporting period.
CURRENT LIABILITIES

An entity shall classify a liability as current when:


a. It expects to settle the liability in its normal operating cycle
b. It holds the liability primarily for the purpose of trading
c. It is due to be settled within twelve months after the reporting
period
d. The entity does not have an unconditional right to defer
settlement of the liability for at least twelve months after the
reporting period
STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
An entity shall present all items of income and expense
recognized in a period in:
a. Single statement of profit and loss and other comprehensive
income

b. Two statements
(1) Statement displaying the profit or loss section only
(2) Statement beginning with profit or loss and displaying
components of other comprehensive income
PAS 1 prohibits the presentation of any items of income or expense as extraordinary items in
the statement(s) presenting profit or loss and other comprehensive income or in the notes.
OTHER COMPREHENSIVE INCOME
Changes in revaluation surplus

Unrealized gains and losses on investments in fair value through other


comprehensive income (FVOCI) securities

Remeasurements of the net defined benefit liability (asset)

Gains and losses arising from translating the financial statements of a


foreign operation

Effective portion of gains and losses on hedging instruments in a cash flow


hedge

OCI may be presented either at gross or net of tax.


TOTAL COMPREHENSIVE INCOME

Comprises all components of


a. Profit or loss
b. Other comprehensive income
STATEMENT OF CHANGES IN EQUITY
a. Effects of change in accounting policy (retrospective
application) or correction of prior period error (retrospective
restatement)

b. Total comprehensive income for the period

c. For each component of equity, a reconciliation between the


carrying amount at the beginning and the end of the period
showing separately changes resulting from:
- P/L
- OCI
- Transaction with owners
ORDER OF PRESENTATION OF DISCLOSURES IN THE NOTES

1. Statement of compliance with PFRS

2. Summary of significant accounting policies applied

3. Supporting information for items presented in the other


financial statements

4. Other disclosures
THANK YOU!!!

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