deloitte- roger nasr lacpa- ifrs seminars ias 1 presentation of financial statements ias 1...
TRANSCRIPT
Deloitte-Roger Nasr
LACPA- IFRS SeminarsLACPA- IFRS Seminars
IAS 1IAS 1 Presentation Presentation of Financial of Financial StatementsStatements
Presented by Presented by – Roger Nasr, – Roger Nasr,
DeloitteDeloitte
Deloitte-Roger Nasr
IAS 1
Structure of the standardStructure of the standard
Objective and scopeObjective and scope Purpose of Financial statementsPurpose of Financial statements Components of Financial StatementsComponents of Financial Statements DefinitionsDefinitions Overall considerationsOverall considerations Structure and contentStructure and content
Deloitte-Roger Nasr
Objective and scopeObjective and scope
ObjectiveObjective to prescribe basis for presentation of “General to 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 statements all general purpose financial statements
prepared under IFRSprepared under IFRS• not condensed interim financial informationnot condensed interim financial information
IAS 1
Deloitte-Roger Nasr
Purpose of Financial statementsPurpose of Financial statements
Structured Presentation of Structured Presentation of Financial PositionFinancial Position Financial PerformanceFinancial Performance Results of Management Stewardship of the Results of Management Stewardship of the
resources entrusted to itresources entrusted to it
Deloitte-Roger Nasr
Components, complete set Components, 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
Deloitte-Roger Nasr
DefinitionsDefinitions Impracticable requirementImpracticable requirement
Entity can not apply it after making every reasonable Entity can not apply it after making every reasonable effort effort
IFRSIFRS IFRS, IAS, IFRIC or SICIFRS, IAS, IFRIC or SIC
MaterialMaterial Omission or misstatement is material if it can Omission or misstatement is material if it can
influence the economic decision of users influence the economic decision of users
Deloitte-Roger Nasr
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
Deloitte-Roger Nasr
Overall considerationsOverall considerations
Fair presentation Fair presentation In extremely rare circumstances, where compliance In extremely rare circumstances, where compliance
with a Standard would be misleading so it would with 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 framework departure is permissible, if regulatory framework requires or does not prohibitrequires or does not prohibit
Specified disclosure requiredSpecified disclosure required
IAS 1
Deloitte-Roger Nasr
Overall considerationsOverall considerations
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 basis - transactions and eventsAccrual basis - transactions 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 another Unless change in nature of operations necessitates another presentationpresentation
A standard or an interpretation requires a changeA standard or an interpretation requires a change
IAS 1
Deloitte-Roger Nasr
Overall considerationsOverall considerations
Materiality & aggregationMateriality & aggregation• material material present separately present separately• immaterial immaterial aggregate with other items aggregate with other items
OffsettingOffsetting• Assets/Liabilities, and Income and expenses shall not be offset Assets/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
Deloitte-Roger Nasr
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
Deloitte-Roger Nasr
Structure and contentStructure and content
Balance sheetBalance sheet current vs. non-current distinctioncurrent vs. non-current distinction or, classify based on liquidity if more or, classify based on liquidity if more
relevantrelevant 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 sub-classifications of items aboverelevant sub-classifications of items above• information on share capital and reservesinformation on share capital and reserves
IAS 1
Deloitte-Roger Nasr
Minimum Items on face of Balance Sheet Minimum 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
Structure and contentStructure and content
Deloitte-Roger Nasr
Structure and contentStructure and content
Current vs. non-current AssetsCurrent vs. non-current Assets Realised/settledRealised/settled in the normal course of in the normal course of
operating cycle or within 12 month of the operating cycle or within 12 month of the balance 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 non-CurrentAll other assets are non-Current
IAS 1
Deloitte-Roger Nasr
Structure and contentStructure and content Current Vs. non Current LiabilitiesCurrent Vs. non Current Liabilities
Settled in the normal course of operating cycle or due to be Settled 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 post-balance sheet events (refinancing, correction of defaults) post-balance sheet events (refinancing, correction of defaults)
do not affect current vs. non-current classificationdo not affect current vs. non-current classification All other Liabilities are non-CurrentAll other Liabilities are non-Current
Deloitte-Roger Nasr
Structure and contentStructure and content
Income statementIncome statement obligatory line items on face of I/Sobligatory line items on face of I/S To show as allocation To 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 statement Dividends should be disclosed plus per share (or in statement of changes in equityof changes in equity
IAS 1
Deloitte-Roger Nasr
Structure and contentStructure and content 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 the Sum of profit or loss on discontinued operations plus gain or loss on the
disposal of discontinued operations assetsdisposal of discontinued operations assets Profit or loss Profit or loss No operating income/lossNo operating income/loss No extraordinary itemsNo extraordinary items
Deloitte-Roger Nasr
Structure and contentStructure and content
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
Deloitte-Roger Nasr
Structure and contentStructure and content
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 holders
of 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
Deloitte-Roger Nasr
Structure and contentStructure and content
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 income’comprehensive income’
Cash flow statement in accordance with Cash flow statement in accordance with IAS 7IAS 7
IAS 1
Deloitte-Roger Nasr
Structure and contentStructure and content
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
Deloitte-Roger Nasr
Case study 01Case study 01
Income statement presentationIncome statement presentation
IAS 1
Deloitte-Roger Nasr
Classification by functionClassification by function
Deloitte-Roger Nasr