IAS -Doha Presentation

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial Statements Objective of IAS 1Objective of IAS 1 The objective of IAS 1 (revised 1997) is to prescribe the basis for The objective of IAS 1 (revised 1997) is to prescribe the basis for presentation of general purpose financial statements, to ensure presentation of general purpose financial statements, to ensure comparability both with the entity's financial statements of previous periods comparability both with the entity's financial statements of previous periods and with the financial statements of other entities. IAS 1 sets out the overall and with the financial statements of other entities. IAS 1 sets out the overall framework and responsibilities for the presentation of financial statements, framework and responsibilities for the presentation of financial statements, guidelines for their structure and minimum requirements for the content of guidelines for their structure and minimum requirements for the content of

the financial statements.the financial statements. ScopeScope Applies to all general purpose financial statements based on International Applies to all general purpose financial statements based on International Financial Reporting Standards. [IAS 1.2] General purpose financial Financial Reporting Standards. [IAS 1.2] General purpose financial statements are those intended to serve users who do not have the authority statements are those intended to serve users who do not have the authority to demand financial reports tailored for their own needs. [IAS 1.3]to demand financial reports tailored for their own needs. [IAS 1.3]

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial Statements Objective of Financial StatementsObjective of Financial StatementsThe objective of general purpose financial statements is to The objective of general purpose financial statements is to provide information about the financial position, financial provide information about the financial position, financial performance, and cash flows of an entity that is useful to a performance, and cash flows of an entity that is useful to a wide range of users in making economic decisions. To meet wide range of users in making economic decisions. To meet that objective, financial statements provide information about that objective, financial statements provide information about an entity's: an entity's: Assets. Assets. Liabilities. Liabilities. Equity. Equity. Income and expenses, including gains and losses. Income and expenses, including gains and losses. Other changes in equity. Other changes in equity. Cash flows.Cash flows.

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsComponents of Financial StatementsComponents of Financial Statements

A complete set of financial statements should includeA complete set of financial statements should include: [IAS : [IAS 1.8]1.8]

a balance sheet, a balance sheet, income statement, income statement, a statement of changes in equity showing either: a statement of changes in equity showing either: all changes in equity, or all changes in equity, or changes in equity other than those arising from transactions with changes in equity other than those arising from transactions with equity holders acting in their capacity as equity holders; equity holders acting in their capacity as equity holders; cash flow statement, and cash flow statement, and notes, comprising a summary of accounting policies and other notes, comprising a summary of accounting policies and other explanatory notes.explanatory notes.

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsFair Presentation and Compliance with IFRSs;Fair Presentation and Compliance with IFRSs;The financial statements must "present fairly" the financial The financial statements must "present fairly" the financial position, financial performance and cash flows of an entity. Fair position, financial performance and cash flows of an entity. Fair presentation requires the faithful representation of the effects presentation requires the faithful representation of the effects of transactions, other events, and conditions in accordance of transactions, other events, and conditions in accordance with the definitions and recognition criteria for assets, liabilities, with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the Framework. income and expenses set out in the Framework.

The application of IFRSs, with additional disclosure when The application of IFRSs, with additional disclosure when necessary, is presumed to result in financial statements that necessary, is presumed to result in financial statements that achieve a fair presentation. [IAS 1.13] .achieve a fair presentation. [IAS 1.13] .

IAS 1 requires that an entity whose financial statements IAS 1 requires that an entity whose financial statements comply with IFRSs make an explicit and unreserved statement comply with IFRSs make an explicit and unreserved statement of such compliance in the notes of such compliance in the notes

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsGoing Concern-Going Concern-An entity preparing IFRS financial statements is presumed to An entity preparing IFRS financial statements is presumed to be a going concern. If management has significant concerns be a going concern. If management has significant concerns about the entity's ability to continue as a going concern, the about the entity's ability to continue as a going concern, the uncertainties must be disclosed. If management concludes that uncertainties must be disclosed. If management concludes that the entity is not a going concern, the financial statements should the entity is not a going concern, the financial statements should not be prepared on a going concern basis, in which case IAS 1 not be prepared on a going concern basis, in which case IAS 1 requires a series of disclosures. [IAS 1.23] requires a series of disclosures. [IAS 1.23]

Accrual Basis of Accounting-Accrual Basis of Accounting-

IAS 1 requires that an entity prepare its financial statements, IAS 1 requires that an entity prepare its financial statements, except for cash low information, using the accrual basis of except for cash low information, using the accrual basis of accounting. [IAS 1.25].accounting. [IAS 1.25].

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsConsistency of PresentationConsistency of Presentation The presentation and classification of items in the financial The presentation and classification of items in the financial statements shall be retained from one period to the next unless statements shall be retained from one period to the next unless a change is justified either by a change in circumstances or a a change is justified either by a change in circumstances or a requirement of a new IFRS. [IAS 1.27] requirement of a new IFRS. [IAS 1.27]

Materiality and AggregationMateriality and Aggregation Each material class of similar items must be presented Each material class of similar items must be presented separately in the financial statements. Dissimilar items may be separately in the financial statements. Dissimilar items may be aggregated only if the are individually immaterial. [IAS 1.29]aggregated only if the are individually immaterial. [IAS 1.29]

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial Statements

OffsettingOffsetting Assets and liabilities, and income and expenses, Assets and liabilities, and income and expenses, may not be may not be offsetoffset unless required or permitted by a Standard or an unless required or permitted by a Standard or an Interpretation. [IAS 1.32]Interpretation. [IAS 1.32] Comparative InformationComparative Information IAS 1 requires that comparative information shall be disclosed IAS 1 requires that comparative information shall be disclosed in respect of the previous period for all amounts reported in the in respect of the previous period for all amounts reported in the financial statements, both on the face of financial statements financial statements, both on the face of financial statements and notes, unless another Standard requires otherwise. [IAS and notes, unless another Standard requires otherwise. [IAS 1.36]1.36]

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsStructure and Content of Financial Statements in GeneralStructure and Content of Financial Statements in General

Clearly identify: [IAS 1.46]Clearly identify: [IAS 1.46] the financial statements the financial statements the reporting enterprise the reporting enterprise whether the statements are for the enterprise or for a whether the statements are for the enterprise or for a group group the date or period covered the date or period covered the presentation currency the presentation currency the level of precision (thousands, millions, the level of precision (thousands, millions, etc.) etc.)


Reporting PeriodReporting Period There is a presumption that financial statements will be There is a presumption that financial statements will be prepared at least annually. If the annual reporting period prepared at least annually. If the annual reporting period changes and financial statements are prepared for a different changes and financial statements are prepared for a different period, the enterprise must disclose the reason for the change period, the enterprise must disclose the reason for the change and a warning about problems of comparability. [IAS 1.49]and a warning about problems of comparability. [IAS 1.49]

Balance Sheet Balance Sheet

An entity must normally present a classified balance sheet, An entity must normally present a classified balance sheet, separating current and non current assets and liabilities. Only if separating current and non current assets and liabilities. Only if a presentation based on liquidity provides information that is a presentation based on liquidity provides information that is reliable and more relevant may the current/non current split be reliable and more relevant may the current/non current split be omitted. [IAS 1.51]omitted. [IAS 1.51]

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsCurrent assetsCurrent assets - -are cash; cash equivalent; assets held for collection, are cash; cash equivalent; assets held for collection, sale, or consumption within the enterprise's normal sale, or consumption within the enterprise's normal operating cycle; or assets held for trading within the operating cycle; or assets held for trading within the next 12 months. All other assets are non current. [IAS next 12 months. All other assets are non current. [IAS 1.57]1.57]Current liabilitiesCurrent liabilities-- are those to be settled within the enterprise's normal are those to be settled within the enterprise's normal operating cycle or due within 12 months, or those held operating cycle or due within 12 months, or those held for trading, or those for which the entity does not have for trading, or those for which the entity does not have an unconditional right to defer payment beyond 12 an unconditional right to defer payment beyond 12

monthsmonths..

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsMinimum items on the face of the balance sheet [IAS Minimum items on the face of the balance sheet [IAS 1.68]1.68]

property, plant and equipment; property, plant and equipment; investment property; investment property; intangible assets; intangible assets; financial assets (excluding amounts shown under (e), (h) and (i)); financial assets (excluding amounts shown under (e), (h) and (i)); investments accounted for using the equity method; investments accounted for using the equity method; biological assets; biological assets; inventories; inventories; trade and other receivables; trade and other receivables; cash and cash equivalents; cash and cash equivalents; trade and other payables; trade and other payables; provisions; provisions; financial liabilities (excluding amounts shown under (j) and (k)); financial liabilities (excluding amounts shown under (j) and (k)); liabilities and assets for current tax, as defined in IAS 12; liabilities and assets for current tax, as defined in IAS 12; deferred tax liabilities and deferred tax assets, as defined in IAS 12; deferred tax liabilities and deferred tax assets, as defined in IAS 12; minority interest, presented within equity; and minority interest, presented within equity; and issued capital and reserves attributable to equity holders of the parent.issued capital and reserves attributable to equity holders of the parent.

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsRegarding issued share capital and reserves, the Regarding issued share capital and reserves, the following disclosures are required: [IAS 1.76]following disclosures are required: [IAS 1.76]Numbers of shares authorized, issued and fully paid, and Numbers of shares authorized, issued and fully paid, and issued but not fully paid issued but not fully paid par value par value reconciliation of shares outstanding at the beginning and the reconciliation of shares outstanding at the beginning and the end of the period end of the period description of rights, preferences, and restrictions description of rights, preferences, and restrictions treasury shares, including shares held by subsidiaries and treasury shares, including shares held by subsidiaries and associates associates shares reserved for issuance under options and contracts shares reserved for issuance under options and contracts a description of the nature and purpose of each reserve within a description of the nature and purpose of each reserve within

owners' equity.owners' equity.

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsMinimum items on the face of the income statement Minimum items on the face of the income statement should include: [IAS 1.81]should include: [IAS 1.81]

revenue; revenue; finance costs; finance costs; share of the profit or loss of associates and joint ventures share of the profit or loss of associates and joint ventures accounted for using the equity method; accounted for using the equity method; a single amount comprising the total of (i) the post-tax profit a single amount comprising the total of (i) the post-tax profit or loss of discontinued operations and the post-tax gain or loss or loss of discontinued operations and the post-tax gain or loss recognized on the disposal of the assets or disposal group's) recognized on the disposal of the assets or disposal group's) constituting the discontinued operation; and; constituting the discontinued operation; and; tax expense; and tax expense; and profit or loss.profit or loss.

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsThe following items must also be disclosed on the face of the income The following items must also be disclosed on the face of the income statement as allocations of profit or loss for the period: [IAS 1.82] statement as allocations of profit or loss for the period: [IAS 1.82]

(a) profit or loss attributable to minority interest; and (a) profit or loss attributable to minority interest; and (b) profit or loss attributable to equity holders of the parent.(b) profit or loss attributable to equity holders of the parent.

Certain items must be disclosed either on the face of the income statement Certain items must be disclosed either on the face of the income statement or in the notes, if material, including: [IAS 1.87] or in the notes, if material, including: [IAS 1.87] write-downs of inventories to net realizable value or of property, plant and write-downs of inventories to net realizable value or of property, plant and equipment to recoverable amount, as well as reversals of such write-downs; equipment to recoverable amount, as well as reversals of such write-downs; restructurings of the activities of an entity and reversals of any provisions restructurings of the activities of an entity and reversals of any provisions for the costs of restructuring; for the costs of restructuring; disposals of items of property, plant and equipment; disposals of items of property, plant and equipment; disposals of investments; disposals of investments; discontinuing operations; discontinuing operations; litigation settlements; and litigation settlements; and other reversals of provisions. other reversals of provisions.

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsEXPENSESEXPENSESExpenses should be analyzed either by nature (raw materials, Expenses should be analyzed either by nature (raw materials, staffing costs, depreciation, etc.) or by function (cost of sales, staffing costs, depreciation, etc.) or by function (cost of sales, selling, administrative, etc.) either on the face of the income selling, administrative, etc.) either on the face of the income statement or in the notes. [IAS 1.88] If an enterprise categorizes statement or in the notes. [IAS 1.88] If an enterprise categorizes by function, additional information on the nature of expenses -by function, additional information on the nature of expenses --at a minimum depreciation, amortization, and staff costs -- at a minimum depreciation, amortization, and staff costs --

must be disclosed. [IAS 1.93]must be disclosed. [IAS 1.93]

Cash Flow Statement Cash Flow Statement Rather than setting out separate standards for presenting the Rather than setting out separate standards for presenting the cash flow statement, IAS 1.102 refers to IAS 7, Cash flow cash flow statement, IAS 1.102 refers to IAS 7, Cash flow

StatementsStatements

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsStatement of Changes in EquityStatement of Changes in Equity

IAS 1 requires an entity to present a statement of changes in equity as a IAS 1 requires an entity to present a statement of changes in equity as a separate component of the financial statements. The statement separate component of the financial statements. The statement mustmust show: show: [IAS 1.96] [IAS 1.96] (a) profit or loss for the period;(a) profit or loss for the period; (b) each item of income and expense for the period that is recognized (b) each item of income and expense for the period that is recognized directly in equity, and the total of those items; directly in equity, and the total of those items;

(c) total income and expense for the period (calculated as the sum of (a) (c) total income and expense for the period (calculated as the sum of (a) and (b)), showing separately the total amounts attributable to equity holders and (b)), showing separately the total amounts attributable to equity holders of the parent and to minority interest; and of the parent and to minority interest; and

(d) for each component of equity, the effects of changes in accounting (d) for each component of equity, the effects of changes in accounting

policies and corrections of errors recognized in accordance with IAS 8.policies and corrections of errors recognized in accordance with IAS 8.

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsThe following amounts may also be presented on the face of the The following amounts may also be presented on the face of the statement of changes in equity, or they may be presented in the statement of changes in equity, or they may be presented in the notes: [IAS 1.97]notes: [IAS 1.97] (a) (a) capital transactions with owners; capital transactions with owners; (b) the balance of accumulated profits at the beginning and at (b) the balance of accumulated profits at the beginning and at the end of the period, and the movements for the period; and the end of the period, and the movements for the period; and

(c) a reconciliation between the carrying amount of each class (c) a reconciliation between the carrying amount of each class of equity capital, share premium and each reserve at the of equity capital, share premium and each reserve at the beginning and at the end of the period, disclosing each beginning and at the end of the period, disclosing each

movement.movement.

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsNotes to the Financial StatementsNotes to the Financial Statements

The notes must: [IAS 1.103] The notes must: [IAS 1.103] present information about the basis of preparation of the present information about the basis of preparation of the financial statements and the specific accounting policies used; financial statements and the specific accounting policies used; disclose any information required by IFRSs that is not disclose any information required by IFRSs that is not presented on the face of the balance sheet, income statement, presented on the face of the balance sheet, income statement, statement of changes in equity, or cash flow statement; and statement of changes in equity, or cash flow statement; and provide additional information that is not presented on the provide additional information that is not presented on the face of the balance sheet, income statement, statement of face of the balance sheet, income statement, statement of changes in equity, or cash flow statement that is deemed changes in equity, or cash flow statement that is deemed

relevant to an understanding of any of themrelevant to an understanding of any of them. .

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsNotes should be cross-referenced from the face of the financial Notes should be cross-referenced from the face of the financial statements to the relevant note. [IAS 1.104] IAS 1.105 suggests statements to the relevant note. [IAS 1.104] IAS 1.105 suggests that the notes should normally be presented in the following that the notes should normally be presented in the following order:order: a statement of compliance with IFRSs; a statement of compliance with IFRSs; a summary of significant accounting policies applied, including: [IAS 1.108] a summary of significant accounting policies applied, including: [IAS 1.108]

the measurement basis (or bases) used in preparing the financial the measurement basis (or bases) used in preparing the financial statements; and statements; and the other accounting policies used that are relevant to an understanding the other accounting policies used that are relevant to an understanding of the financial statements.of the financial statements.

supporting information for items presented on the face of the balance sheet, supporting information for items presented on the face of the balance sheet, income statement, statement of changes in equity, and cash flow statement, in income statement, statement of changes in equity, and cash flow statement, in the order in which each statement and each line item is presented; and the order in which each statement and each line item is presented; and other disclosures, including: other disclosures, including: contingent liabilities (see IAS 37) and unrecognized contractual contingent liabilities (see IAS 37) and unrecognized contractual commitments; and non-financial disclosures, such as the entity's financial risk commitments; and non-financial disclosures, such as the entity's financial risk management objectives and policies (see IAS 32).management objectives and policies (see IAS 32).

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsDisclosure of judgments.Disclosure of judgments. New in the 2003 revision to IAS 1, an New in the 2003 revision to IAS 1, an entity must disclose, in the summary of significant accounting entity must disclose, in the summary of significant accounting policies or other notes, the judgments;policies or other notes, the judgments;

whether financial assets are held-to-maturity investments; whether financial assets are held-to-maturity investments; when substantially all the significant risks and rewards of when substantially all the significant risks and rewards of ownership of financial assets and lease assets are transferred ownership of financial assets and lease assets are transferred to other entities; to other entities; whether, in substance, particular sales of goods are financing whether, in substance, particular sales of goods are financing arrangements and therefore do not give rise to revenue; and arrangements and therefore do not give rise to revenue; and whether the substance of the relationship between the entity whether the substance of the relationship between the entity and a special purpose entity indicates that the special purpose and a special purpose entity indicates that the special purpose entity is controlled by the entityentity is controlled by the entity

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsThe following other note disclosures are required by IAS 1.126 The following other note disclosures are required by IAS 1.126 if not disclosed elsewhere in information published with the if not disclosed elsewhere in information published with the financial statementsfinancial statements::

domicile of the enterprise; domicile of the enterprise; country of incorporation; country of incorporation; address of registered office or principal place of business; address of registered office or principal place of business; description of the enterprise's operations and principal description of the enterprise's operations and principal activities; activities; name of its parent and the ultimate parent if it is part of a name of its parent and the ultimate parent if it is part of a group.group.


Disclosures about Dividends-Disclosures about Dividends- The following must be disclosed either on the face of the income statement The following must be disclosed either on the face of the income statement or the statement of changes in equity or in the notes: [IAS 1.95] or the statement of changes in equity or in the notes: [IAS 1.95] the amount of dividends recognized as distributions to equity holders during the amount of dividends recognized as distributions to equity holders during the period, and the related amount per share.the period, and the related amount per share.

The following must be disclosed in the notes: {IAS 1.125]The following must be disclosed in the notes: {IAS 1.125] the amount of dividends proposed or declared before the financial the amount of dividends proposed or declared before the financial statements were authorized for issue but not recognized as a distribution to statements were authorized for issue but not recognized as a distribution to equity holders during the period, and the related amount per share; and equity holders during the period, and the related amount per share; and

the amount of any cumulative preference dividends not recognizedthe amount of any cumulative preference dividends not recognized. .

IAS -1 : Presentation of Financial StatementsIAS -1 : Presentation of Financial StatementsCapital Disclosures-Capital Disclosures-

the entity's objectives, policies and processes for the entity's objectives, policies and processes for managing capital; managing capital; quantitative data about what the entity regards as capital; quantitative data about what the entity regards as capital; whether the entity has complied with any capital whether the entity has complied with any capital requirements; and requirements; and if it has not complied, the consequences of such non-if it has not complied, the consequences of such non-compliance. compliance. These disclosure requirements apply to all entities, These disclosure requirements apply to all entities, effective for annual periods beginning on or after 1 January effective for annual periods beginning on or after 1 January 2007, with earlier application encouraged2007, with earlier application encouraged


IAS 1 changes the titles of financial statements IAS 1 changes the titles of financial statements as they will be used in IFRSs:as they will be used in IFRSs: 'balance sheet' will become 'statement of financial position' 'balance sheet' will become 'statement of financial position' 'income statement' will become 'statement of comprehensive income' 'income statement' will become 'statement of comprehensive income' 'cash flow statement' will become 'statement of cash flows'). 'cash flow statement' will become 'statement of cash flows'). Entities are not required to use the new titles in their financial statements. Entities are not required to use the new titles in their financial statements. All existing Standards and Interpretations are being amended to reflect the All existing Standards and Interpretations are being amended to reflect the new terminology. The revised IAS 1 resulted in consequential amendments new terminology. The revised IAS 1 resulted in consequential amendments to 5 IFRSs, 23 IASs, and 10 Interpretations. to 5 IFRSs, 23 IASs, and 10 Interpretations. The revised IAS 1 is effective for annual periods beginning on or after 1 The revised IAS 1 is effective for annual periods beginning on or after 1 January 2009. January 2009.

Early adoption is permittedEarly adoption is permitted


Comprehensive income for a period includes profit or Comprehensive income for a period includes profit or loss for that period plus other comprehensive income loss for that period plus other comprehensive income recognized in that period. The components of other recognized in that period. The components of other comprehensive income includecomprehensive income include::

changes in revaluation surplus (IAS 16 and IAS 38). changes in revaluation surplus (IAS 16 and IAS 38). actuarial gains and losses on defined benefit plans actuarial gains and losses on defined benefit plans recognised in accordance with paragraph 93A of IAS 19 recognised in accordance with paragraph 93A of IAS 19 gains and losses arising from translating the financial gains and losses arising from translating the financial statements of a foreign operation IAS 21. statements of a foreign operation IAS 21. gains and losses on remeasuring available-for-sale financial gains and losses on remeasuring available-for-sale financial assets IAS 39. assets IAS 39. the effective portion of gains and losses on hedging the effective portion of gains and losses on hedging instruments in a cash flow hedge IAS 39instruments in a cash flow hedge IAS 39

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IAS -Doha Presentation