PAS 1:

PRESENTATION OF
FINANCIAL STATEMENTS
INTRODUCTION
PAS 1 prescribes the following:
basis for the presentation of general purpose
financial statements
guidelines for structure
minimum requirements for content
ensures comparability
GENERAL PURPOSE FINANCIAL STATEMENTS

Those intended to serve users who do not have the authority to

demand financial reports tailored for their own needs.

Complete set of financial statements:

Statement of financial position
Statement of comprehensive income
Statement of changes in equity
Statement of cash flows
Notes
Additional statement of financial position*
General Features: Frequency of reporting:

1. Fair Presentation and compliance with PFRS

2. Going Concern
3. Accrual basis of Accounting
4. Materiality and Aggregation Financial Statements shall be presented at least
5. Offsetting annually.
6. Frequency of reporting
7. Comparative Information
8. Consistency of presentation
STATEMENT OF
FINANCIAL POSITION
It shows the entity's financial conditions (i.e., status of
assets, liabilities, and equities) as at a certain date. It may
be presented through the following:
a. classified manner
b. unclassified manner
c. mixed presentation
ASSET

CURRENT ASSETS

realize the asset or intends to sell or consume it, in its normal operating cycle;
for the purpose of trading;
realize the asset within 12 months after the reporting; or
The asset is cash or a 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.
As a minimum, the line items under current
assets are:

Cash and Cash equivalents

Financial assets at fair value
Trade and other receivables
Inventories
Prepaid Expenses

As a minimum, the line items under noncurrent assets

are:

Property, Plant and Equipment

Long-term investments
Intangible assets
Deferred tax assets
Other noncurrent assets
LIABILITIES

CURRENT LIABILITIES

settle the liability in its normal operating cycle;

primarily for the purpose of trading;
to be settled within twelve months after the reporting period; or
The entity does not have an unconditional right to defer the settlement of the liability
for at least twelve months after the reporting period.
As a minimum, the line items under current
liabilities are:

Trade and other payables

Current provisions
Short-term borrowings
Current portion of a long-term debt
Current tax liability

As a minimum, the line items under noncurrent liabilites

are:

Non current portion of long-term debt

Finance lease liability
Deferred tax liability
Long-term obligations to company officers
Long-term deferred revenue
Discretion to refinance

Covenants

Effect of breach of
covenants
Equity

Terms Used:

Owner’s Equity - proprietorship

Partner’s Equity - partnership
Stockholders Equity or Shareholders Equity - corporation
forms of statements

a. Report form
b. Account form
Line Items of Financial Position:
1. Cash and Cash equivalents
2. Financial Assets (other than 1, 3, and 6)
3. Trade and other receivables
4. Inventories
5. PPE
6. Investment in Associates accounted for by
equity method 10. Total Assets classified as held for sale
7. Intangible assets 11. Trade and other payables
8. Investment Property 12. Current Tax Assets and Liability
9. Biological Assets 13. Deferred tax assets and liability
14. Provisions
15. Financial Liabilities (other than 11 and 14)
16. Liabilities included in disposal group as
held for sale
17. Noncontrolling Interest
18. Share capital and Reserves
notes to financial statements

provide narrative description or disaggregation of items presented in the

Financial Statements
statement of profit or
loss and other
PROFIT OR LOSS
income less expenses, excluding
comprehensive income
the components of other
comprehensive income Income and expenses for the period
excess = profit; deficiency = loss may be presented in either:
computed through "transaction
approach"
a. single statement
b. two statements
EXPENSES
components include cost of goods PAS 1 requires an entity to present
sold or cost of sales, distribution information on:
costs or selling expenses, 1. profit or loss
administrative expenses, other 2. other comprehensive income;
expenses, and income tax expense
3. comprehensive income
NO MORE EXTRAORDINARY ITEMS

PAS 1, paragraph 87, specifically mandates that:

An entity shall not present any items of income and

expense as extraordinary either on the face of the
income statement or statement of comprehensive
income or in the notes.
LINE ITEMS
a. Property, plant and equipment; i. Cash and cash equivalents;
b. Investment property; j. Assets (or disposal groups) classified
c. Intangible assets; as held for sale in accordance
d. Financial assets (excluding k. Trade and other payables;
amounts shown under (e), (h) and (i); l. Provisions;
e. Investments accounted for using m. Financial liabilities (excluding
the equity method amounts shown under (k) and (l);
f. Biological assets; n. Liabilities and assets for current tax,
g. Inventories; as defined in PAS 12 Income Taxes;
h. Trade and other receivables; o. Deferred tax liabilities and deferred
tax assets, as defined in PAS 12
FORMS OF STATEMENTS
PAS 1, paragraph 99, provides that an entity shall present
an analysis of expenses using a classification based on
either the function or their nature, whichever provides
information that is reliable and more relevant.

However, PAS 1 does not prescribe the order or format in

which an entity presents items.
FUNCTIONAL PRESENTATION
Also known as the cost of goods sold method, it clarifies
expenses according to their function as part of cost of goods
sold, distribution costs, administrative expenses, and other
expenses.

NATURAL PRESENTATION
Also referred to as the nature of expense method, expenses
are aggregated according to their nature and not allocated
among the various functions within the entity. In other words,
expenses are no longer classified accordingly.
other comprehensive income
It comprises items of income and expense (including
reclassification adjustments) that are not recognized in profit or
loss as required or permitted by other PFRS. This may be
presented either (a) net of tax or (b) gross of tax.

reclassification adjustments
Reclassification adjustments are amounts reclassified to profit
or loss in the current period that were recognized in other
comprehensive income in the current or previous periods,
total comprehensive income

It is the change in equity during a

period resulting from transactions,
other than those changes resulting
from transactions with owners in ther
capacity as owners.
statement of changes in equity
It shows the following information:
effects of change in accounting policy (retrospective application) or
correction of prior period error (retrospective restatement)
total comprehensive income for the period
a reconciliation between the carrying amount at the beginning and
end of the period, showing seporately changes

*Non-owner changes in equity are presented in the statement of

comprehensive income while owner changes are presented in the
statement of changes in equity.
ICEBREAKER
The gutter is the space between the framed panels.

4pics1word
As the reader moves across the gutter, they must
relate one panel to the next. Gutters contain the
unseen story and the reader has to ‘fill in the gaps’
to piece the story together.
PAS 7:
STATEMENT OF
CASH FLOWS
shot types
When discussing framing we can use the same language as film to refer to an image
as a close-up, mid shot or long shot depending on how the content is framed.

CLOSE-UP SHOT MID SHOT LONG SHOT

A subject's head takes up A subject is seen from the A subject's entire body is seen
most of the panel. It is used to waist up. It shows emotion as well as some of the setting.
reveal emotion through facial through facial expression as It shows their emotion
expression. well as body language. through posture and gesture.
types of speech bubbles
Speech bubbles can be drawn in different ways for various effects.

Scream Thought Icicle Coloured

Bubbles Bubbles Bubbles Bubbles

Used to show a Used to show internal Used to represent cold Used to convey the
character is screaming thoughts of a character. hostility. They usually emotion behind the
or shouting. They They are usually cloud have jagged icicles speech to enhance
usually have jagged shaped and connected hanging from the mood.
edges. to the subject's head by bottom.
smaller bubbles.
transitions
Transitions refer to the process of closure (where the reader mentally ‘fills in the
gaps’) between panels. There are six main types of transitions that artists use in comic
books. These are as follows:

MOMENT TO Shows a small change in time

between panels with very little
action to Shows a single subject
MOMENT visual change. action progressing though an action.

Shifts focus to different parts

SUBJECT TO The panels occur in the same
scene but display different
aspect to of or perspectives on the same
SUBJECT elements or topics. aspect scene.

SCENE TO non Two panels next to one

Shows changes between time
another with no logical
SCENE and/or space. sequitur relationship at all
stylistic
features
lighting & Colour
Lighting and colour may be used to show
different moods. For example, bright colours
and light are often used to show a sense of
fun and happiness, while dull colours and dim
lighting may be used to show gloom and
sadness or to create tension or suspense.

Colours may also have specific associations.

For example, red might communicate ideas of
violence, danger or romance depending on
how it’s used.
setting
The time and location depicted in
the background of a panel can
give information or help convey
mood or atmosphere.

Consider the ideas or associations

we have with certain places and
how the setting helps to drive the
narrative.
objects
Objects can be important and
meaningful. They can reveal
information about a character,
setting or theme.

Think about the connotations of

different objects. For example, a
ring on a certain finger symbolises
being married.
Facial Expression Gesture
A form of non-verbal The movement and positioning
communication using the of the hands and arms to
movement of facial features communicate or undertake
such as eyes, cheeks & mouth. action.

body language
Posture Gaze
The position in which someone Where the person is looking
holds their body. This and who or what the person is
nonverbal communication tells looking at. This can draw our
us about the person’s mood. focus towards something.
your turn
Choose three scenes (1-3 pages) of the graphic novel and
make notes on the use of the following conventions. Consider
how these are employed to convey ideas or position audience
response.
Panels & Frames Onomatopoeia
Shot Types Emanata
Narration Boxes Body Language
Speech Bubbles Objects
Transitions Lighting and Colour
Setting
elements used:
elements used:
More applicable in profit-oriented entities.
Comply explicit and unreserved financial information with PFRS.
Do not require order or format in SFP (2 Types of presentation
can be used).
Allowed “mixed presentation” for diverse operation for SFP.
Presenting only the income statement is prohibited.
Allows the disclosure of dividends and the related amount per
sharein the statement of changes in equity or in notes.