IAS 1 Presentation of Financial Statements
International Accounting Standard 1
Overview of IAS 1
- Issued: in 1975; re-issued in 2007, followed by amendments
- Effective date: 1 January 2009
- What it does:
- It defines complete set of general purpose financial statements that contains 5 components:
- Statement of financial position;
- Statement of profit or loss and other comprehensive income;
- Statement of changes in equity;
- Statement of cash flows;
- Notes with summary of significant accounting policies and other explanatory information
- It describes the general features of financial statements:
- fair presentation and compliance with IFRS;
- going concern;
- accrual basis of accounting;
- materiality and aggregation;
- offsetting;
- frequency of reporting;
- comparative information; and
- consistency of presentation.
- It sets the minimum requirements for the content of financial statements; their identification and structure.
- It defines complete set of general purpose financial statements that contains 5 components:
Articles about IAS 1
- Summary of IAS 1 Presentation of Financial Statements
- How to write notes - this article gives a step-by-step guidance on writing the notes and also, some stories are included
- Current or Non-current? - this article will help you decide whether you should present the item as current or non-current
- IFRS for Banks and Financial Institutions- I recommend reading it if you work for a bank, because the structure of financial statements is different
- Profit or loss vs. Other Comprehensive Income - what's the difference?
Questions and Answers
- How to present the financial statements when going concern does NOT apply?
- How to classify expenses in profit or loss?
- How to present a loan with breached covenants? - this Q&A relates to current/non-current distinction
- How to deal with CAPEX threshold for your PPE? - this Q&A relates to materiality and its change during the reporting period
- Failed to comply with IFRS?
- How to present comparatives when the reporting period changes
Other Resources
- IFRS Kit - learn IFRS in 150+ videos, 150+ excel case studies, quizzes, certificates
- Expected Credit Loss for Accountants - highly specialized course focused on ECL under IFRS 9 with step-by-step example related to trade receivables, many practical insights included.
