IAS 1
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International Accounting Standard 1: Presentation of Financial Statements or IAS 1 is an
IAS 1 was originally issued by the International Accounting Standards Committee in 1997, superseding three standards on disclosure and presentation requirements,[1] and was the first comprehensive accounting standard to deal with the presentation of financial standards.[3] It was adopted by the IASB in 2001,[1] and as of 2012 the standard was last amended in June 2011; these amendments are effective from July 1, 2012.[4]
Overview
Purpose and Features
IAS 1 sets out the purpose of financial statements as the provision of useful information on the financial position, financial performance and
IAS 1 also elaborates on the following features of the financial statements:
- fairly presented and compliant with IFRSs;
- prepared on a going concern basis;
- prepared using the accrual basisof accounting;
- has material classes presented separately;
- does not offset assets and liabilities;
- prepared at least annually;
- includes comparison with previous periods; and
- presented consistently across periods
Structure and Content
IAS 1 lists the line items that, as a minimum, are to be included. The standard lists requirements regarding the classification of information, such as requiring that
Recent amendments
IAS 1 was amended in 2007 to reflect a change in terminology that also affected other accounting standards. The changes include the following.[4]
Term before amendment | Term after amendment |
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Balance sheet | Statement of financial position |
Cash flow statement | Statement of cash flows |
Income statement | Statement of comprehensive income |
The IASB amended the statement again in 2011, adding the requirement that items in other comprehensive income be grouped based on their potential reclassifiability to profit and loss, among several other changes.[4] These amendments, when previously proposed, led to the Institute of Chartered Accountants in England and Wales advising that the approach of making "small changes to one standard" can have negative effects.[5]
References
- ^ a b c d e f IFRS Foundation, 2012. International Accounting Standard 1: Presentation of Financial Statements. Retrieved on April 20, 2012.
- ^ ICAEW, 2012. IAS 1: Presentation of financial statements. Retrieved on April 20, 2012.
- ^ Kirk, R.J. The Key Issues in IAS1[permanent dead link]. Retrieved on April 20, 2012.
- ^ a b c Deloitte Global Services Limited, 2012. IAS 1 — Presentation of Financial Statements. Retrieved on April 20, 2012.
- ^ Reed K, 2010. IASB must hold off tweaking existing standards, says ICAEW. Retrieved on April 22, 2012.