AASB 101- PRESENTATION OF FINANCIAL STATEMENT

Running Head: AASB 101- PRESENTATION OF FINANCIAL STATEMENT
AASB 101- Presentation of Financial Statement
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AASB 101- PRESENTATION OF FINANCIAL STATEMENT1
Introduction
The AASB refers to the Australian Accounting Standards Board that is an
organization of the government of Australia. This helps in maintaining and developing the
standard related to financial reporting through a conceptual framework. These standards are
applicable to private organizations as well as in public organizations.
“AASB 101”- Presentation of Financial Statements is introduced by AASB as
Section 334 within the Corporation Act 2001 on 24 July 2015 (Aasb.gov.au 2019). The
amendment made in this standard is applicable to the period begins from 1 January 2019 and
must be prior to 1 January 2020. The amended standards reflect in Paragraph 1-Aus 126.6.
Reference to this accounting standard, many other standards are available for 101
accounting standard for a proper structure and guidance so that it can declare a transparent
report.
Objective
Paragraph 1 of this standard states its objective- as this standard covers the financial
reports that seem to have information of high quality. This basically considers the whole
requirement for preparing of entity’s financial reports with proper guidelines for maintaining
the structure. The main objective of this standard for the financial report is to reveal an
entity's financial position, performance and cash flow. This brings transparency for the users
and easily compare the presented information to take their economic decisions.
Scope
According to Paragraph 3-6, the scope for this standard discussed as the first
accounting standard considering the financial statement in Australia. Introducing with the
financial position’s standard considers the measurements, acknowledging and disclosure

AASB 101- PRESENTATION OF FINANCIAL STATEMENT2
about different transactions and events that the entity should have to present consider to the
date of start of this standard (Hodgson and Russell 2014). However, this standard is not
applicable in the structure and content of an interim financial report. The standard is applied
to both entities those who prepare consolidated reports and also to those who prepare separate
financial reports.
Important Definitions as per Paragraph 7
o The general purpose of Financial Statement is the report that is being prepared to
help and guide the users who cannot directly contact with the entity for their required
information.
o Impracticable is a situation when an entity is not able to apply a requirement after
making every effort.
o Material Omissions are those misstatements that can affect the user decision which
they made on the basis of the reports presented by an entity.
o Other Comprehensive Income includes the components of income as well as of
expenses that have not been identified in the profit and loss required by else
accounting standard of Australia.
o Total Comprehensive Income reflects the equity due to various transactions
capability and occurrence of events during a period, but other than the changes
occurred from the transaction as per the owner’s capability (Aasb.gov.au 2019).
Hence, it includes the elements of profit/loss as well as of other comprehensive
income.
Financial Statement
 Purpose (As per Paragraph 9)