Essay about The Differences Between Sage And Ias 1

1027 Words Nov 13th, 2016 5 Pages
Report on the differences between Sage and IAS 1 in regard to financial statements

There are some notable differences between, both, the formats, and the content of financial statements when using SAGE compared the standards required when following IAS1. These differences vary between stating which currency you are using, the contents and layout of items in the statements, rounding, and the terminology used to describe items in the statements and several more. This report aims to compare, critique, and provide suggestion for improvement where necessary regarding SAGE and how it links with IAS 1.

A prominent difference between our statements produced on SAGE and the standards required by IAS 1 is the issue of currency. In our SAGE reports there is no given currency for either the balance sheet or the profit and loss sheet. This can cause many problems when dealing with large companies that operate in multiple countries and thus require different currency classifications. If this is not done then companies could possibly over(/under)state profit/loss for the period, which would not be a faithful representation, which is one of the general principles of the International Financial Reporting Standards(IFRS). It could also just confuse things in general in a multinational company if they have many sets of financial statements from various countries with a myriad of currencies and have to match the country to the currency as it has not been stated on the set of financial…

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