Wiley IFRS: Practical Implementation Guide and Workbook, 3rd Edition

Chapter 3

PRESENTATION OF FINANCIAL STATEMENTS (IAS 1)

INTRODUCTION

IAS 1 provides guidelines on the presentation of the “general-purpose financial statements,” thereby ensuring comparability both with the entity’s financial statements of previous periods and with those of other entities. It provides overall requirements for the presentation of financial statements, guidance on their structure, and the minimum requirements for their content. It also prescribes the components of the financial statements that together would be considered a complete set of financial statements.

SCOPE

The requirements of IAS 1 are to be applied to all “general-purpose financial statements” that have been prepared and presented in accordance with International Financial Reporting Standards (IFRS). “General-purpose financial statements” are those intended to meet the needs of users who are not in a position to demand reports that are tailored according to their information needs. IAS 1 is not applicable to condensed interim financial statements prepared according to IAS 34. Modification of the presentation requirements of the Standard may be required by nonprofit entities and those entities whose share capital is not equity.

DEFINITIONS OF KEY TERMS

Impracticable. Applying a requirement becomes impracticable when the entity cannot apply a requirement despite all reasonable efforts to do so.

International Financial Reporting Standards (IFRS). Standards and interpretations adopted by the International ...