Part_2_Chapter_2_Presentation_of_financial_statements_(IAS_1)

Statement of comprehensive income
• Other income/expenses:
– – – – Interest income on investments; Lessor’s finance income on finance leases; Dividend income; Fair value gains and losses on financial assets at fair value through income statement; – Gains and loses on trading derivatives; – Licence fees.
Part 2 - Chapter 2: Presentation of financial statements (IAS 1)
Advanced accounting and international financial reporting standards
1
Content of financial statements
– – – – – – Advertising; Salespersons’ travel and entertaining; Warehouse costs for finished goods; Transport costs arising on the distribution of finished goods; All costs of maintaining sales outlets; Agents’ commissions.
Advanced accounting and international financial reporting standards Pag. 7
Statement of profit or loss and other comprehensive income
• Minimum line items should be expanded when relevant to understanding of financial performance • Allocations of comprehensive income to shareholders of the parent and noncontrolling interests • No extraordinary items • Analysis of expenses in profit or loss based on either the nature of the expenses or their function
Advanced accounting and international financial reporting standards Paprehensive income
• Distribution costs:
– Payroll costs of the sales, marketing and distribution functions;
• Administrative expenses:
– – – – Cost of general management; All costs of maintaining administration buildings; Bad debts; Professional costs.
Advanced accounting and international financial reporting standards Pag. 12
– All direct production overheads (including depreciation and amortization of production assets); – Cash discounts received on purchases; – Inventory write-downs.
Advanced accounting and international financial reporting standards Pag. 4
Statement of profit or loss and other comprehensive income
Advanced accounting and international financial reporting standards Pag. 5
• In principle, as a minimum, comparative information for the previous period is required • An extra statement of financial position at the beginning of the comparative period should be presented if an accounting policy is applied retrospectively or if an error is corrected retrospectively
Advanced accounting and international financial reporting standards Pag. 2
Statement of financial position
• Minimum line items should be expanded when relevant to understanding of financial position • Present current and non-current assets/liabilities unless presentation based on liquidity is more reliable and/or relevant
Advanced accounting and international financial reporting standards Pag. 8
Statement of comprehensive income
Table 3.2(a)
Income statement analysing expenses by nature
• Current/non-current distinction is based on
• Expected period of recovery/settlement (more or less than 12 months) • Situation at the end of the reporting period
• A compete set of financial statements comprises (IAS 1.10):
– As at the end of the period
– A statement of financial position
– For the period
– A statement of profit or loss and other comprehensive income (previously called statement of comprehensive income) – A statement of changes in equity – A statement of cash flows for the period – Notes
Statement of profit or loss and other comprehensive income
• Profit or loss: total of income less expenses excluding the components of other comprehensive income • Other comprehensive income: items of income and expense that are not recognized in profit or loss as required or permitted by other IFRS
– All components of ‘profit or loss’ and of ‘other comprehensive income’ – Presented either in a single statement or in two separate sections where the statement of profit or loss immediately precedes the statement of comprehensive income starting with profit or loss
Advanced accounting and international financial reporting standards Pag. 6
Statement of profit or loss and other comprehensive income
Not reclassified • Revaluation surplus • Remeasurements of defined benefit plans • Related income taxes • Not reclassified OCI of associates and joint ventures Reclassified • Currency translation differences • Remeasuring AFS financial assets • Cash flow hedges • Related taxes • Reclassified OCI of associates and joint ventures