General requirements for financial statements under IFRS

Required financial statements: 

  • Balance sheet 
  • Statement of comprehensive income 
  • Cash flow statement 
  • Statement of changes in owner’s equity 
  • Explanatory notes

Features for preparing financial statements according to IAS

  • Fair presentation: 
    • effects of entities transactions and events for recognizing assets, liabilities, revenues, expenses. 
  • Going concern basis: 
    • The firm will continue to exist unless its management intends to liquidate it. 
  • Accrual basis: 
    • Financial statement rather than statement of cash flow 
  • Consistency
    • between period in how items are presented and classified.  
  • Materiality:
    • Free of misstatement or omission that could influence decision of users of financial statement
  • Aggregation
    • Of similar items and separation of dissimilar items 
  • No offsetting 
    • of assets against liabilities or income against expense. 
  • Reporting frequency:
    • at least annually 
  • Comparative information 
    • for prior period should be included

 Structure and content of a financial statement 

  • Should present classified balance sheet showing current and noncurrent assets. 
  • Minimum information: is required on the face of each financial statement
    • Balance sheet: cash or cash equivalent 
    • Income statement: revenue, profit or losses,…
  • Comparative information for prior period should be included.