Notes

SUMMARIES CHAPTER 2 - STATEMENT OF COMPREHENSIVE
INCOME
CHAPTER 1 - FINANCIAL POSITION/ BALANCE SHEET
 General purpose financial are those statements that cater to  PAS 1: Presentation of Financial Statements
the common needs of a wide range of primary (external)  Income and expenses may be presented: (a) in a single
users. statement of profit or loss and other comprehensive income,
 The purpose of general purposes financial statement is to or (b) in two statements – an income statement and a
provide information about the financial position, financial statement presenting comprehensive income.
performance, and cash flows of an entity that is useful to a  Other comprehensive income (OCI) comprises items of
wide range of users in making economic decisions. income and expense (including reclassification adjustments
 A complete set of financial statements consists of the (that are not recognized in profit or loss as required or
following: permitted by other PFRSs. OCI include: (a) changes in
a. Statement of financial position (at the end of the revaluation surplus, (b) remeasurements of the net defined
period) liability (asset), (c) unrealized gains and losses on foreign
b. Statement of profit or loss and other comprehensive operation, and (e) effective portion of gains and losses on
income (for the period) hedging instruments in a cash flow hedge.
c. Statement of changes in equity (for the period)  Reclassification adjustments are amounts reclassified from
d. Statement of cash flows (for the period) OCI to profit or loss.
e. Notes, comprising a summary of significant  OCI may presented net or gross of related taxes.
accounting policies and other explanatory notes.  Total comprehensive income includes all non-owner
f. Comparative information prescribed by the standard – changes in equity. It comprises profit or loss and other
this includes the statement of financial position as the comprehensive income.
beginning of the earliest comparative period when an  Presenting extraordinary items in the financial statements,
entity: including the notes, is prohibited.
- Applies an accounting policy retrospectively  Expenses may be presented using either the Nature of
- Makes a retrospective restatement of items in its expense or the Function of expense method. Additional
FS, or disclosure is required when the function of expense method
- When it reclassifies items is its FS is used.
- If the effect is material
g. Additional statement of financial position when an
CHAPTER 5 – STATEMENT OF CHANGES IN EQUITY
entity makes a retrospective application, retrospective
restatement, or reclassifies items- with material effect.  Dividends are disclosed either in the statement of
 The statement of financial position may be presented either changes in equity or in the notes.
showing current/noncurrent distinction (classified) or based  Owner changes in equity are presented in the
on liquidity (unclassified). PAS 1 encourages the classified statement of changes in equity. Non-owner changes in
presentation. equity are presented in the statement of comprehensive
 Current assets are those that re expected to be realized income.
within 1 yea. All other assets are noncurrent.
 Current liabilities are those that are expected to be settled CHPATER 6 – STATEMENT OF CASH FLOWS
within 1 year. All other liabilities are noncurrent.  PAS 7: Statement of Cash flows
 Deferred tax assets and deferred tax liabilities are presented  The statement of cash flows shows historical changes ( ie,
as noncurrent items in a classified statement of financial sources and utilization) in cash and cash equivalents during
position. the period. It is an integral part of a complete set of
 PAS 1 does not prescribe the order or format in which an financial statements and is used in conjunction with the
entity presents items. other financial statements assessing the ability of an entity
 LINE ITEMS IN THE STATEEMNT OF FINANCIAL to generate cash and cash equivalents, the timing and
POSITION BUT NOT LIMITED TO: (PAS 1, certainty of their generation, and the needs of the entity to
paragraph 54) utilize those cash flows.
1. Cash and cash equivalents  Cash flows are classified into (a) operating activities, (b)
2. Financial Assets investing activities and (c) financing activities.
3. Trade and other receivables  Operating Activities include transactions that enter into the
4. Inventories determination of profit or loss, i.e., income and expenses.
5. PPE  Investing Activities include transactions affect non-current
6. Investment in Associate assets and other non-operating assets.
7. Intangible Asset  Financing activities include transactions that affect equity
8. Investment property and non-operating liabilities.
9. Biological Assets
 Only transaction that have affected cash and cash
10. Total assets classified as held for sale
equivalents are included in the statement of cash flows.
11. Trade and other payables
Non-cash transactions are excluded and disclosed only.
12. Current tax asset and liability
13. Deferred tax asset and liability  Entities other than financial institutions have options in
14. Provisions presenting cash flows relating to interests and dividends.
15. Financial Liabilities  Cash flows from operating activities may be reported using
16. Liabilities included in disposal group as held for sale either (a) direct methos or (b) indirect method
17. Noncontrolling interest  The direct method shows that each major class of gross
18. Share capital and reserves cash receipts and gross cash payments. Under the indirect
method, profit or loss is adjusted for the effects of non-cash
items and changes in operating assets and liabilities.
 Cash flows relating to investing and financing activities are
presented separately at gross amounts, unless they qualify
for net presentation.

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SUMMARIES CHAPTER 2 - STATEMENT OF COMPREHENSIVE

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