The Objective Of IAS1 And The International Financial Reporting Statements
The objective of IAS1(2007) is to prescribe the basis for presentation of general purpose financial statements to compare both with the previous financial statements of the entity and with the financial statement of other entities. IAS1 sets out the overall requirements for the presentation of financial statements, guidelines for the structure and minimum requirements for the content of the financial statement.[IAS1.1]
IAS1 applies to all general purpose financial statements that are prepared and presented in accordance with International Financial Reporting Standards(IFRSs).[IAS1.2] General purpose Financial Statements are intended to give particular information needs to users who are not have the right to require financial reports.
The elements of Financial Statements
The element of Financial Statements includes a statement of financial position(balance sheet) at the end of the period, a statement of profit or loss and other comprehensive income for the period, a statement of changes in equity for the period, a statement …show more content…
One of the presenting method is preparing a single statement of profit or loss and other comprehensive income. Another presenting method is preparing two statements which are a separate statement of profit or loss and a statement of comprehensive.[IAS1.10A]
As a minimum, the items that need to be disclosed on the face of the statement of profit or loss and other comprehensive income are revenue, finance costs, share of profits and losses of associates and joint ventures accounted for using the equity method, pre-tax gain or loss attributable to discontinued operations, tax expense, profit or loss, each component of other comprehensive income classified by nature, share of the other comprehensive income of associates and joint ventures and total comprehensive