### Summary of IAS 1: Presentation of Financial Statements

**Objective:**
IAS 1 establishes the basis for presenting general-purpose financial statements to ensure
comparability both with the entity's financial statements of previous periods and with the
financial statements of other entities.

**Key Points:**

1. **Components of Financial Statements:**

- A complete set of financial statements includes:
1. A statement of financial position (balance sheet) as at the end of the period.
2. A statement of profit or loss and other comprehensive income for the period.
3. A statement of changes in equity for the period.
4. A statement of cash flows for the period.
5. Notes, comprising a summary of significant accounting policies and other explanatory
information.
6. Comparative information in respect of the preceding period.
7. A statement of financial position as at the beginning of the earliest comparative period
when an entity applies an accounting policy retrospectively or makes a retrospective
restatement of items in its financial statements.

2. **Fair Presentation and Compliance with IFRSs:**

- Financial statements must present fairly the financial position, financial performance, and
cash flows of an entity.
- Fair presentation requires the faithful representation of the effects of transactions, other
events, and conditions in accordance with the definitions and recognition criteria for assets,
liabilities, income, and expenses set out in the IFRSs framework.
- Compliance with IFRSs is presumed to result in financial statements that achieve a fair
presentation.

3. **Going Concern:**
 - Management must assess an entity’s ability to continue as a going concern.
- Financial statements must be prepared on a going concern basis unless management
intends to liquidate the entity or cease trading, or has no realistic alternative but to do so.
- Disclosures are required if there are material uncertainties related to events or conditions
that may cast significant doubt upon the entity’s ability to continue as a going concern.

4. **Accrual Basis of Accounting:**

- Entities must prepare their financial statements, except for cash flow information, using
the accrual basis of accounting.

5. **Materiality and Aggregation:**

- Entities must present separately each material class of similar items.
- Entities must present separately items of a dissimilar nature or function unless they are
immaterial.
- Omissions or misstatements of items are material if they could, individually or
collectively, influence the economic decisions that users make based on the financial
statements.

6. **Offsetting:**
- Entities must not offset assets and liabilities or income and expenses unless required or
permitted by an IFRS.

7. **Frequency of Reporting:**
- Entities must present a complete set of financial statements at least annually.
- When an entity changes the end of its reporting period and presents financial statements
for a period longer or shorter than one year, it must disclose the period covered, the reason for
using a longer or shorter period, and the fact that comparative amounts in the financial
statements are not entirely comparable.

8. **Comparative Information:**
- Entities must disclose comparative information in respect of the previous period for all
amounts reported in the current period’s financial statements.
 - Comparative information must also be provided for narrative and descriptive information
if it is relevant to understanding the current period’s financial statements.

9. **Structure and Content:**

- IAS 1 provides detailed guidance on the structure and content of financial statements,
including:
1. A statement of financial position (balance sheet).
2. A statement of profit or loss and other comprehensive income.
3. A statement of changes in equity.
4. A statement of cash flows.
5. Notes to the financial statements.
- The standard also specifies the minimum line items to be presented in these statements
and notes.

10. **Disclosure:**
- Entities must disclose information that enables users of financial statements to evaluate
the entity's objectives, policies, and processes for managing capital.

**Conclusion:**
IAS 1 sets out the overall requirements for the presentation of financial statements, guidelines
for their structure, and minimum requirements for their content. The objective is to ensure
that financial statements provide a true and fair view of the entity’s financial position,
performance, and cash flows, enhancing comparability and consistency across reporting
periods and among different entities.