Presentation of Financial Statements (IAS 1)
Today is Saturday 11th july 2015 , one more day to Monday when work resumes. First we go to my aunts place to visit. Her place is near the airport, so we saw a lot of planes making a hell of a noise, and after about 2 hours of being stuck in traffic, we finally got to our destination. On getting there, I saw my aunt terribly sick, she was having a fever and it was getting out of control. My sister, being a doctor in the making attended to her. She showed signs of improvement and was still able to gist with us.
After sometime, we ate there and collected the items we asked our cousin to help us purchase in London. Her husband came home to Nigeria and she sent it through her husband. I bought two 2-piece suits in preparation for that big job after my Nysc *wink* and also a kindle for reading for my exams.. The funny thing is that where I am currently serving is just two blocks away from where I desire to work after my Nysc. It is a subsidiary of one of the best and oldest banks in Nigeria. It is the asset management division I am gunning for.<!-
Anywaiz we left at around 8:30 and got home 9:30 the road was considerably free.
I was tired but still able to muster strength and read the IAS1
Here goes the summary:
Key notes about the IAS 1 is that
- It was issued by the international accounting standards committee in September 1997.
- A revised edition was issued IN December 2003.
- An amendment to IAS 1 (capital disclosure) WAS ISSUED IN AUGUST 2005
IAS1 was also amended by the following IFRS Standards
- IFRS 5 Non current Assets held for sale and discontinued operations (issued march 2004)
- Actuarial Gain and losses group plans and disclosures (Amendment to IAS 19) ISSUED DECEMBER 2004
- IFRS 7 financial instruments: Disclosures issued in august 2005
- IAS 23 Borrowing costs (revised in march 2007)
IAS 1 sets overall requirements for the presentation of financial statements, guidelines for their structure and minimum requirements for their content. The main reason for revising IAS 1 as gathered through research was to aggregate information in the financial statements on the basis of shared characteristics.
Also, the board considered the FASB’S statement no 130, reporting comprehensive income (SFAS) issued in 1997. The board looked at the similarities and differences and drew a conclusion in the paragraph BC106, Basis for conclusions.
The IAS1 differentiates a change in equity from owner change in equity (which results in a change in equity by owners in transactions where they act in the capacity of owners) to non- owner change in equity (Change in comprehensive income). Also it is required that an entity presents in a statement of financial position as at the beginning of the earliest comparative period in a complete set of financial statements when an entity changes its accounting policy.
IAS 1 requires a disclosure of reclassification adjustments of existing tax that were previously in other comprehensive income to be disclosed if they would be paid in the current period.
Reporting Owner change in equity and comprehensive income
There should be a distinction in the preparation of owner changes in equity (ie transactions arising from transactions with owners in their capacity as owners).
Income and expenses are to be presented in one statement, and total comprehensive income is to e presented in the financial statements.