Comprehensive Report: IAS 1 Presentation of Financial Statements

This report provides an overview of IAS 1, focusing on the presentation of financial statements. It details the requirements for financial statement organization, including the statement of financial position, cash flows, changes in equity, and profit and loss. The report traces the evolution of IAS 1 through various amendments, such as those related to capital disclosures, puttable financial obligations, classification of liabilities, and the presentation of other comprehensive income. It also discusses the disclosure initiative and the definition of materiality, highlighting how these changes impact the consistency and management of financial statements, particularly concerning comprehensive income. The report references key sources like the International Accounting Standard and IFSB, providing a comprehensive understanding of IAS 1 and its practical implications.

IAS 1
PRESENTATION OF
FINANCIAL STATEMENTS

Table of Contents
MAIN BODY...................................................................................................................................1
Example of Comprehensive income...........................................................................................2
REFERENCES................................................................................................................................3

MAIN BODY
Proposed amendments relating to international accounting standard
Presentation of financial statements are set like that they are fulfil of requirements of
financial statements that are including how they should be organized, the marginal requirements
for their overriding concepts and content are such as going concern, the accumulation ground of
accounting that are divided in to current and non current parts (International accounting
standard. 2017). The standard requires a complete set of financials statements to comprise a
statement of financial position, a statement of cash flows, a statements of changes in equity, a
statement of profit and loss and other comprehensive income.
On October 1976, IAS 5 information to be disclosed in financial statement issued, that is
starting from operating for periods beginning on or after 1 January 1975. In going concern
prospectives many Amended by amendment to IAS 1 – Capital disclosers that is implement
on 18 August 2005, for the entity's processes, objectives and policies for managing capital,
effective annual periods that are beginning after 1 January 2007.
Amended by puttable financial obligations and instruments arising on liquidation that are
apply on 14 February 2008, that are using after 1 January 2009, for amendment puttable
instruments that are subordinate to all other classes of instruments and that entitle the holder to a
pro data share of entity that relate to net assets in the event of the entity's liquidation.
Amended by annual improvements to IFRSs 2007, it classify in derivates as current and non
current that are implementing on 22 May 2008, the improvements divided in two parts, firstly
identified as Amendment that result in accounting changes in presentation, recognition or
measurement. After changes that are effected to IFRS 7, IAS 8, IAS 10, IAS 18, IAS 20, IAS 29,
IAS 34, IAS 40, and IAS 41.
Amended by improvements to IFRSs 2009 (Classification of liabilities as current ), it is apply
to 16 April 2009, due to the annual improvements project provides a vehicle for making non
urgent but necessary amendments to IFRSs. It is deal with the finalisation of a number of
proposed amendments included in exposure drafts of proposed amendments to published in
October 2007, August 2008 and January 2009.
Amended by improvements to IFRSs 2010 (Clarification of statement of changes in equity), it
is implement on 6 may 2010, the IASB uses the annual modification to make necessary of the
project, but non urgent, amendments to IFRSs that will not be included as part of another major
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project. These amendments had been proposed in exposure drafts that are issued on August 2008
and august 2009.
Amended by presentation of items of other comprehensive income, on 16 June 2011, due to
modification for their generation is more large objectives under deep projects. The alteration to
the proposition of other comprehensive income were spun out of the broad plan that are
supported on performance reporting. It is promised a major overhaul of the way the primary
financial statements were presented.
Amended by annual improvements cycle to 2009 to 2011, implement on 17 may 2012, it is a
collection of amendments to IFRSs, in response to issues addressed during the 2009-2011 cycle.
Five standards are primarily affected by the amendments, with consequential amendments to
numerous others.
Amended by discloser initiative (Amendments to IAS 1) on 18 December 2014, changes from
the proposals in the exposure draft disclosure initiative had enclosed a content that an entity
should not aggregate or disaggregate information in a manner that obscures useful information.
As disaggregation often means expanding totals and subtotals and thus providing added
transparency.
Amended by definition of material (amendments to IAS 1 and IAS 8) apply on 31 October
2018 and it is beginning annual period on after 1 January 2020. the changes and reasoning
behind the changes in definition of material all relate to a revised definition of material which is
quoted below from the financial amendments.
Example of Comprehensive income
The purpose of amendments of IAS 1 indicates towards inconsistency towards the
process of materiality and the management of financial statements. There was an modification
regarding comprehensive income statement (IFSB. 2017). Presentation of non cash and
contingent income were the main aspects considered essential to elaborate the changes and
analysing the durability of financial statements. The disclosure policy and the management scale
are analysed by considering the material information and management aspects. There is a septate
section is required to disclose the comprehensive income items and managing the ability of
discussing the business concept.
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REFERENCES
International accounting standard. 2017. [Online] Available through:
<https://www.iasplus.com/en/standards/ias/ias1>
IFSB. 2017. [Online]. Available through.
<https://www.iasplus.com/en/projects/completed/aip/annual-improvements-2008-2010>
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