International Financial Reporting Standards_guide.pdf

20 Chapter 3 Presentation of Financial Statements (IAS 1)
3.4.7 The accrual basis of accounting should be applied when preparing the financial statements,
except for cash flow information. Under this basis, items are recognized as assets,
liabilities, equity, income, and expenses when they meet the definitions and recognition
criteria.
3.4.8 Aggregation of immaterial items of a similar nature and function is allowed. Material
items should not be aggregated. Items with a dissimilar nature or function should be presented
separately, unless they are immaterial.
3.4.9 Assets and liabilities should not be offset unless it is required or allowed by another
IFRS (see chapter 33 on IAS 32 and chapter 15 on IAS 12). However, immaterial gains, losses,
and related expenses arising from similar transactions and events can be offset.
3.4.10 With regard to comparative information, the following aspects are presented for all
amounts reported in the financial statements:
■ numerical information for the previous period; and
■ relevant narrative and descriptive information.
3.5 PRESENTATION AND DISCLOSURE
3.5.1 Financial statements should be clearly identified and distinguished from other types
of information in the same published document. Each component of the financial statements
should be clearly identified, with the following information prominently displayed:
■ name of reporting entity;
■ whether the financial statements are of an individual entity (stand-alone) or of a group
of entities (consolidated);
■ reporting date or period covered;
■ presentation currency (refer to chapter 21 on IAS 21); and
■ level of precision used in presenting amounts.
Statement of Financial Position (Balance Sheet)
3.5.2 The Statement of Financial Position provides information about the financial position
of the entity. It should distinguish between major categories and classifications of assets
and liabilities.
3.5.3 Current or noncurrent distinction. The Statement of Financial Position should normally
distinguish between current and noncurrent assets, and between current and noncurrent
liabilities. Assets and liabilities to be recovered or settled within 12 months should be
disclosed as current.
3.5.4 Liquidity-based presentation. Where a presentation based on liquidity provides
more relevant and reliable information (for example, in the case of a bank or similar financial
institution), assets and liabilities should be presented in the order in which they can or might
be required to be liquidated.
3.5.5 Irrespective of the method of presentation adopted, an entity should disclose the
amount expected to be recovered or settled within and after more than 12 months of the
reporting period for each asset and liability line.