FAF3
Syllabus F. Preparing Basic Financial Statements F1. Statements of financial position

IAS 1 (revised) Presentation of FS 3 / 4

Chapter 1: Objectives and overall purpose of financial reporting

Prescribes the basis for presentation of FSs to ensure comparability:

  • with the entity‚Äôs financial statements of previous periods and

  • with the FS of other entities.

It sets out overall requirements for the presentation of FS, guidelines for their structure and minimum requirements for their content.

Purpose of FS

is to provide users with information about the financial position, financial performance and cash flow of an entity.

Per IAS1, FS provide information about an entity's:

  1. Assets

  2. Liabilities

  3. Equity

  4. Income and expenses

  5. Other changes in equity

  6. Cash flows

Responsibility for the FS

Responsibility for the preparation and presentation of an entity's financial statements rests with the board of directors

A complete set of financial statements comprises

  1. a statement of financial position as at the end of the period (SOFP);

  2. a statement of comprehensive income for the period (SOCI);

  3. a statement of changes in equity for the period (SOCIE);

  4. a statement of cash flows for the period (SOCF);

  5. notes, comprising a summary of significant accounting policies and other explanatory information; and

  6. a statement of financial position as at the beginning of the earliest comparative period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements.

An entity shall present a complete set of financial statements (including comparative information) at least annually.