IFRS Excellence Academy’s Post

 IAS 1: Presentation of Financial Statements a.     Purpose:                                                    i.    Ensure comparability across periods and entities. b.     Key Components:                                                    i.    Statement of financial position.                                                   ii.    Statement of profit and loss and other comprehensive income.                                                  iii.    Statement of change in equity                                                  iv.    Statement of cash flow                                                   v.    Notes to the financial statement c.     Requirement:                                                    i.    Going concern assumption                                                   ii.    Accrual basis of accounting                                                  iii.    Consistency of presentation

IRS 18 will replace IAS 1 on financial reporting disclosure, dividing for instance statement of profit or loss into four sub categories.... Effective in 2027

IFRS Daily Dose #6: Challenges in Assessing Materiality Determining materiality can be tricky! 🚧 While it's a crucial concept, assessing materiality presents several challenges: Subjectivity: Materiality is inherently subjective. What's material to one user might not be to another. 😮💨 Changing Circumstances: Materiality isn't static. It can change based on the entity's circumstances, industry trends, and even economic conditions. 🔄 Judgment Calls: Ultimately, assessing materiality relies on professional judgment. This can lead to inconsistencies if not done carefully. ⚖️ Despite these challenges, effective materiality assessments are essential for high-quality financial reporting. 📊 Tomorrow's Dose: We'll explore some practical approaches to navigating these challenges and making informed materiality judgments. #IFRS #Accounting #Materiality

IAS 1 PREPARATION OF FINANCIAL STATEMENTS Have you ever thought of how your financial statement should look like? IASB has given all you need in IAS 1. A compete set of financial statements MUST comprise of the following. 1. A statement of financial position as at end of accounting period; 2. A statement of profit and loss and other comprehensive income for the priod. 3. A statement in Changes in Equity for the priod. 4. A statement of cash flows for the period 5. Explanatory Notes 6. Statement of financial position as at the begining of the preceding comparative period especially when entities applies an accounting policy restropectively NOTE: IAS 1 also allows and entity to presesnt a single combined statement of profit and loss and other comprehensive income or two seperate statements. therefore, any entity whose financial statements comply with IFRS standards must make an explicit and unreserved statement of such compliance in the notes. so, IAS as work hand in hand with IFRS whenever reportings are being done.

IAS 10 - Events After the Reporting Period IAS 10 outlines the accounting treatment for events occurring after the reporting period but before the financial statements are authorized for issue. It distinguishes between adjusting events (which provide evidence of conditions existing at the end of the reporting period and require adjustments to financial statements) and non-adjusting events (which are indicative of conditions arising after the reporting period and are disclosed, but not adjusted). Proper application of IAS 10 ensures accurate and transparent financial reporting, reflecting the most up-to-date financial position of the entity.

IFRS 18: WATCH OUT 🚨 Under IFRS 18, all income and expenses in the Profit and Loss (P&L) statement must be classified into one of five categories: Operating Investing Financing Income Taxes Discontinued Operations However, it’s crucial to note that these categories are not necessarily the same as those used in the Statement of Cash Flows under IAS 7. Understanding these distinctions is vital for accurate financial reporting and analysis 😉 #IFRS18 #FinancialReporting #Accounting

IAS 1, or International Accounting Standard 1, sets out guidelines for presenting financial statements and establishes minimum content requirements. It applies to all general purpose financial statements based on International Financial Reporting Standards (IFRS). Originally issued in 1997, it replaced three standards on disclosure and presentation requirements. The IASB adopted it in 2001, with the last amendment in June 2011, effective from July 1, 2012. #ias1 #audit #internationalaccountingstandard #accounting #finance #financialstatements #p&l #cashflow #financialposition

Summary of IAS 10: Events After the Reporting Period IAS 10 outlines the treatment of events occurring between the end of the reporting period and the date when financial statements are authorized for issue. It categorizes these events into two types: 1. Adjusting Events: Events that provide additional evidence about conditions that existed at the reporting date, requiring adjustments to the financial statements. 2. Non-Adjusting Events: Events indicative of conditions arising after the reporting period, which do not require adjustments but may need disclosure if they are significant. The standard mandates disclosures for significant non-adjusting events to ensure users of financial statements are informed of potential impacts. Financial statements are considered authorized for issue when they are approved by the relevant authority within the entity. Proper application of IAS 10 ensures that financial statements present a true and fair view of an entity’s financial position and performance.

IFRS Daily Dose #2: The "Faithful Representation" Test🚀 You've got the numbers, but do they truly reflect the economic reality? That’s where "faithful representation" comes in. This core principle of the IFRS Conceptual Framework ensures that financial information accurately depicts the underlying transactions and events. Think of it as a litmus test. Does the information: Be complete? ✔️ No crucial details left out. Be neutral? ⚖️ Free from bias and undue influence. Be free from error? 🔍 Accurate and reliable. Understanding faithful representation helps you make informed judgments and ensures your financial statements provide a true and fair view. Tomorrow's Dose: We’ll explore how the concept of "relevance" influences your accounting decisions. 📅 #IFRS #Accounting #Finance #FaithfulRepresentation

IFRS 18(Presentation & Disclosure in Financial Statements) is finally here! As I was going through the summary, I noted that it has 2 major changes to the P&L,that is, 1. There should be subtotals for, a)operating profit b) profit before financing and income tax 2. Income and expenses should now be categorized as operating , investing ,financing , income taxes and discontinued operations. There are limited changes to specific requirements for statement of cashflows and statement of financial position. There are no changes to specific requirements for statement presenting other comprehensive income and statement of changes in equity. The standard is effective from 1 Jan 2027 but early adoption is permitted. #IFR18 #accountants