IFRS Diploma Notes By Khaled Shokry, ACCA, ESAA

CH15
IAS1 Presentation of Published Financial Statements
1- Statement of Financial Position

Assets 20X9
Non-current assets ( PPE, GW, other intangibles, investments ) *
Current Assets ( Inv., Rec., cash and cash equivalents ) *
T O T A L Assets **
Equity and Liabilities
Equity (Share cap., RE, Revaluation reserve ) *
Non-controlling interest ( in case of subsidiary acquisition ) *
Non-Current Liabilities ( Long term borrowings- Deferred tax- *
Long term provision)
Current liabilities (Payables- short term borrowings- Taxes *
payable...)
T O T A L Equity and Liabilities **

2- Statement of Profit or Loss and Other Comprehensive Income

20X9
Revenue *
Cost of Sales (*)
Gross Profit **
Other income *
Other expenses (*)
Profit before tax **
Income tax expense (*)
Profit for the year **
Other Comprehensive Income
Gains on property revaluations *
Investments in equity instruments *
Total Comprehensive Income
IFRS Diploma Notes By Khaled Shokry, ACCA, ESAA

3- Statement of Changes in Equity

Share Retained Investments in

Capital Earnings equity instruments
Revaluations TOTAL
Balance at 1 Jan 2016 * * * * **
Changes in equity for
2016
Issue of share capital * **
Dividends (*) (**)
Total comprehensive * * * **
income
Balance at 31 Dec ** ** ** ** **
2016
General Notes

- Format of Financial statements are not mandatory but only recommended.

So, judgement must be used to determine the best method of presenting
this information.
- If Reporting period is less or more than one year the entity should disclose:
1- Reason why a period other than one year is used.
2- The fact that comparatives are not comparable.
- State how items of assets or liabilities are classified into current or non-
current.
- P/L statement includes all gains and losses while OCI includes specific
items determined by standards “HEAPS + TAXES”.
- Statement of P/L and other comprehensive income either to be presented
in a single statement or 2 separate statements.
- Statement of P/L is presented and classified by Nature or Function.
- In very rare cases entity may not comply with specific standard as it would
be misleading, so in this case the following should be disclosed:
1- The fact that specific standard has not been applied.
2- Details of nature of departure. Why application of this standard is
misleading, and the treatment applied.
3- Financial impact of departure.
IFRS Diploma Notes By Khaled Shokry, ACCA, ESAA

PAST EXAM QUESTIONS

DEC 2019 Q4

Statement of profit or loss and other comprehensive income I’ve been

reviewing the statement of profit or loss and other comprehensive
income and it appears to be in two sections. The first section appears
to be entitled ‘profit or loss’ and the second ‘other comprehensive
income’. It appears that the tax charge is included in the ‘profit or loss’
section of the statement as there is no tax charge included in the ‘other
comprehensive income’ section of the statement. I have a number of
questions regarding this statement:
– How do we decide where to put a particular item of income or
expenditure?

– Where does the tax relating to ‘other comprehensive income’ get

shown?

– Do the above points have an impact on the computation of

performance evaluation indicators which will be of interest to
shareholders? (6 marks)

Required:

Provide answers to the questions raised by the director in notes

1–3. You should justify your answers with reference to relevant
International Financial Reporting Standards.