Académique Documents
Professionnel Documents
Culture Documents
January 2016:
IFRS
IAS
IFRIC
SIC
Preface
IAS 1
IFRIC 1
SIC 7
Presentation of
Changes in Existing
Introduction of the
Financial Statements Decommissioning,
Euro
Restoration and Similar
Liabilities
Framework
IAS 2
IFRIC 2
SIC 10
Inventories
Members' Shares in CoGovernment
operative Entities and
AssistanceNo
Similar Instruments
Specific Relation to
Operating Activities
IFRS 1
IAS 7
IFRIC 5
SIC 25
First-time Adoption Statement of Cash
Rights to Interests arising Income Taxes
of International
Flow
from Decommissioning,
Changes in the Tax
Financial Reporting
Restoration and
Status of an Entity
Standards
Environmental
or its Shareholders
Rehabilitation Funds
IFRS 2
IAS 8
IFRIC 6
SIC 29
Share-based
Accounting Policies,
Liabilities arising from
DisclosureService
Payment
Changes in Accounting Participating in a Specific Concession
Estimates and Errors MarketWaste Electrical Arrangements
and Electronic Equipment
IFRS 3
IAS 10
IFRIC 7
SIC 32
Business
Events after the
Applying the Restatement Intangible Assets
Combinations
Reporting Period
Approach under IAS 29
Website Costs
IFRS 4
IAS 12
IFRIC 10
Insurance
Income Taxes
Interim Financial
Contracts
Reporting and
Impairment
IFRS 5
IAS 16
IFRIC 12
Non-current Assets Property, Plant and
Service Concession
Held for Sale and Equipment
Arrangements
Discontinued
Operations
IFRS 6
IAS 19
IFRIC 14
Exploration for
Employee Benefits
IAS 19The Limit on a
and Evaluation of
Defined Benefit Asset,
Mineral Resources
Minimum Funding
Requirements and their
Interaction
IFRS 7
IAS 20
IFRIC 16
Financial
Accounting for
Hedges of a Net
Instruments:
Government Grants
Investment in a Foreign
Disclosures
and Disclosure of
Operation
Government
Assistance
IFRS 8
IAS 21
IFRIC 17
Operating
The Effects of
Distributions of Non-cash
Segments
IFRS 9
Financial
Instruments
IFRS 10
Consolidated
Financial
Statements
IFRS 11
Joint
Arrangements
IFRS 12
Disclosure of
Interest in Other
Entities
IFRS 13
Fair Value
Measurement
Changes in Foreign
Exchange Rates
IAS 23
Borrowing Costs
IAS 24
Related Party
Disclosure
IAS 26
Accounting and
Reporting by
Retirement Benefit
Plans
IAS 27
Separate Financial
Statements
IAS 28
Investments in
Associates and Joint
Ventures
IFRS 14
IAS 29
Regulatory
Financial Reporting in
Deferral Accounts Hyperinflationary
Economies
IFRS 15
IAS 32
Revenue from
Financial Instruments:
Contracts with
Presentation
Customers
IFRS 16
IAS 33
Leases
Earnings per Share
IAS 34
Interim Financial
Reporting
IAS 36
Impairment of Assets
IAS 37
Provisions, Contigent
Liabilities and
Contingent Assets
IAS 38
Intangible Assets
IAS 39
Financial Instruments:
Recognition and
Measurement
IAS 40
Assets to Owners
IFRIC 19
Extinguishing Financial
Liabilities with Equity
Instruments
IFRIC 20
Stripping Costs in the
Production Phase of a
Surface Mine
IFRIC 21
Levies
Investment Property
IAS 41
Agriculture
PHILIPPINE ACCOUNTING STANDARDS 1
PRESENTATION OF FINANCIAL STATEMENTS
Objective of PAS 1
The objective of IAS 1 (revised 1997) is to prescribe the basis for presentation of 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. IAS 1
sets out the overall framework and responsibilities for the presentation of financial
statements, guidelines for their structure and minimum requirements for the content of
the financial statements. Standards for recognising, measuring, and disclosing specific
transactions are addressed in other Standards and Interpretations.
Scope
Applies to all general purpose financial statements based on International Financial
Reporting Standards. [IAS 1.2]
General purpose financial statements are those intended to serve users who do not have
the authority to demand financial reports tailored for their own needs. [IAS 1.3]
Objective of Financial Statements
The objective of general purpose financial statements is to provide information about the
financial position, financial performance, and cash flows of an entity that is useful to a
wide range of users in making economic decisions. To meet that objective, financial
statements provide information about an entity's: [IAS 1.7]
Assets.
Liabilities.
Equity.
Income and expenses, including gains and losses.
Other changes in equity.
Cash flows.
That information, along with other information in the notes, assists users of financial
statements in predicting the entity's future cash flows and, in particular, their timing and
certainty.
Components of Financial Statements
A complete set of financial statements should include: [IAS 1.8]
* a balance sheet,
* income statement,
* a statement of changes in equity showing either:
o all changes in equity, or
o changes in equity other than those arising from transactions with equity holders acting
in their capacity as equity holders;
* cash flow statement, and
* notes, comprising a summary of accounting policies and other explanatory notes.
Reports that are presented outside of the financial statements -- including financial
reviews by management, environmental reports, and value added statements -- are
outside the scope of IFRSs. [IAS 1.9-10]
Fair Presentation and Compliance with IFRSs
The 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 Framework. The application of IFRSs, with additional disclosure when
necessary, is presumed to result in financial statements that achieve a fair presentation.
[IAS 1.13]
IAS 1 requires that an entity whose financial statements comply with IFRSs make an
explicit and unreserved statement of such compliance in the notes. Financial statements
shall not be described as complying with IFRSs unless they comply with all the
requirements of IFRSs (including Interpretations). [IAS 1.14]
Inappropriate accounting policies are not rectified either by disclosure of the accounting
policies used or by notes or explanatory material. [IAS 1.16]
IAS 1 acknowledges that, in extremely rare circumstances, management may conclude
that compliance with an IFRS requirement would be so misleading that it would conflict
with the objective of financial statements set out in the Framework. In such a case, the
entity is required to depart from the IFRS requirement, with detailed disclosure of the
nature, reasons, and impact of the departure. [IAS 1.17-18]
Going Concern
An entity preparing IFRS financial statements is presumed to be a going concern. If
management has significant concerns about the entity's ability to continue as a going
concern, the uncertainties must be disclosed. If management concludes that the entity is
not a going concern, the financial statements should not be prepared on a going concern
basis, in which case IAS 1 requires a series of disclosures. [IAS 1.23]
Accrual Basis of Accounting
IAS 1 requires that an entity prepare its financial statements, except for cash flow
information, using the accrual basis of accounting. [IAS 1.25]
Consistency of Presentation
The presentation and classification of items in the financial statements shall be retained
from one period to the next unless a change is justified either by a change in
circumstances or a requirement of a new IFRS. [IAS 1.27]
Materiality and Aggregation
Each material class of similar items must be presented separately in the financial
statements. Dissimilar items may be aggregated only if the are individually immaterial.
[IAS 1.29]
Offsetting> Assets and liabilities, and income and expenses, may not be offset unless
required or permitted by a Standard or an Interpretation. [IAS 1.32]
Comparative Information
IAS 1 requires that comparative information shall be disclosed in respect of the previous
period for all amounts reported in the financial statements, both face of financial
statements and notes, unless another Standard requires otherwise. [IAS 1.36]
If comparative amounts are changed or reclassified, various disclosures are required. [IAS
1.38]
Structure and Content of Financial Statements in General
Clearly identify: [IAS 1.46]
*
*
*
*
*
*
Reporting Period
There is a presumption that financial statements will be prepared at least annually. If the
annual reporting period changes and financial statements are prepared for a different
period, the enterprise must disclose the reason for the change and a warning about
problems of comparability. [IAS 1.49]
Balance Sheet
An entity must normally present a classified balance sheet, separating current and
noncurrent assets and liabilities. Only if a presentation based on liquidity provides
information that is reliable and more relevant may the current/noncurrent split be
omitted. [IAS 1.51] In either case, if an asset (liability) category commingles amounts that
will be received (settled) after 12 months with assets (liabilities) that will be received
(settled) within 12 months, note disclosure is required that separates the longer-term
amounts from the 12-month amounts. [IAS 1.52]
Current assets are cash; cash equivalent; assets held for collection, sale, or consumption
within the enterprise's normal operating cycle; or assets held for trading within the next
12 months. All other assets are noncurrent. [IAS 1.57]
Current liabilities are those to be settled within the enterprise's normal operating cycle or
due within 12 months, or those held for trading, or those for which the entity does not
have an unconditional right to defer payment beyond 12 months. Other liabilities are
noncurrent. [IAS 1.60]
Additional line items may be needed to fairly present the entity's financial position. [IAS
1.69]
IAS 1 does not prescribe the format of the balance sheet. Assets can be presented current
then noncurrent, or vice versa, and liabilities and equity can be presented current then
noncurrent then equity, or vice versa. A net asset presentation (assets minus liabilities) is
allowed. The long-term financing approach used in UK and elsewhere fixed assets +
current assets - short term payables = long-term debt plus equity is also acceptable.
Regarding issued share capital and reserves, the following disclosures are required: [IAS
1.76]
*
*
*
*
*
*
*
numbers of shares authorised, issued and fully paid, and issued but not fully paid
par value
reconciliation of shares outstanding at the beginning and the end of the period
description of rights, preferences, and restrictions
treasury shares, including shares held by subsidiaries and associates
shares reserved for issuance under options and contracts
a description of the nature and purpose of each reserve within owners' equity
Income Statement
In the 2003 revision to IAS 1, the IASB is now using "profit or loss" rather than "net profit
or loss" as the descriptive term for the bottom line of the income statement.
All items of income and expense recognised in a period must be included in profit or loss
unless a Standard or an Interpretation requires otherwise. [IAS 1.78]
Minimum items on the face of the income statement should include: [IAS 1.81]
* (a) revenue;
* (b) finance costs;
* (c) share of the profit or loss of associates and joint ventures accounted for using the
equity method;
* (d) a single amount comprising the total of (i) the post-tax profit or loss of discontinued
operations and (ii) the post-tax gain or loss recognised on the disposal of the assets or
disposal group(s) constituting the discontinued operation; and;
* (e) tax expense; and
* (f) profit or loss.
The following items must also be disclosed on the face of the income statement as
allocations of profit or loss for the period: [IAS 1.82]
* (a) profit or loss attributable to minority interest; and
* (b) profit or loss attributable to equity holders of the parent.
Additional line items may be needed to fairly present the enterprise's results of
operations.
No items may be presented on the face of the income statement or in the notes as
"extraordinary items". [IAS 1.85]
Certain items must be disclosed either on the face of the income statement or in the
notes, if material, including: [IAS 1.87]
* (a) write-downs of inventories to net realisable value or of property, plant and
equipment to recoverable amount, as well as reversals of such write-downs;
* (b) restructurings of the activities of an entity and reversals of any provisions for the
costs of restructuring;
* (c) disposals of items of property, plant and equipment;
* (d) disposals of investments;
* (e) discontinuing operations;
* (f) litigation settlements; and
* (g) other reversals of provisions.
Expenses should be analysed either by nature (raw materials, staffing costs, depreciation,
etc.) or by function (cost of sales, selling, administrative, etc.) either on the face of the
income statement or in the notes. [IAS 1.88] If an enterprise categorises by function,
additional information on the nature of expenses -- at a minimum depreciation,
amortisation, and staff costs -- must be disclosed. [IAS 1.93]
Cash Flow Statement
Rather than setting out separate standards for presenting the cash flow statement, IAS
o contingent liabilities (see IAS 37) and unrecognised contractual commitments; and
o non-financial disclosures, such as the entity's financial risk management objectives and
policies (see IAS 32).
Disclosure of judgements. New in the 2003 revision to IAS 1, an entity must disclose, in
the summary of significant accounting policies or other notes, the judgements, apart from
those involving estimations, that management has made in the process of applying the
entity's accounting policies that have the most significant effect on the amounts
recognised in the financial statements. [IAS 1.113]
Examples cited in IAS 1.114 include management's judgements in determining:
* whether financial assets are held-to-maturity investments;
* when substantially all the significant risks and rewards of ownership of financial assets
and lease assets are transferred to other entities;
* whether, in substance, particular sales of goods are financing arrangements and
therefore do not give rise to revenue; and
* whether the substance of the relationship between the entity and a special purpose
entity indicates that the special purpose entity is controlled by the entity.
Disclosure of key sources of estimation uncertainty. Also new in the 2003 revision to IAS
1, an entity must disclose, in the notes, information about the key assumptions
concerning the future, and other key sources of estimation uncertainty at the balance
sheet date, that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year. [IAS 1.116] These
disclosures do not involve disclosing budgets or forecasts.
The following other note disclosures are required by IAS 1.126 if not disclosed elsewhere
in information published with the financial statements:
*
*
*
*
*
As part of its project to develop IFRS 7 Financial Instruments: Disclosures, the IASB
concluded also to amend IAS 1 to add requirements for disclosures of:
*
*
*
*
These disclosure requirements apply to all entities, effective for annual periods beginning
on or after 1 January 2007, with earlier application encouraged. Illustrative examples are
provided as guidance.
RESOURCES:
http://lessonko.blogspot.com/2007/07/philipine-accounting-standard-1.html
http://www.ifrs.org/IFRSs/Pages/IFRS.aspx
Conceptual Framework for Financial Reporting 2010
History of the Framework
Framework for the Preparation and Presentation of Financial Statements
April 1989
(the Framework) was approved by the IASC Board
July 1989
Framework was published
April 2001
Framework adopted by the IASB.
September 20 Conceptual Framework for Financial Reporting 2010 (the IFRS Framework)
10
approved by the IASB
Related Interpretations
None
Amendments under consideration by the IASB
IASB Project on Conceptual Framework.
Purpose and status of the Framework
The IFRS Framework describes the basic concepts that underlie the preparation and
presentation of financial statements for external users. The IFRS Framework serves as a
guide to the Board in developing future IFRSs and as a guide to resolving accounting
issues that are not addressed directly in an International Accounting Standard or
International Financial Reporting Standard or Interpretation.
In the absence of a Standard or an Interpretation that specifically applies to a transaction,
management must use its judgement in developing and applying an accounting policy
that results in information that is relevant and reliable. In making that judgement, IAS
8.11 requires management to consider the definitions, recognition criteria, and
measurement concepts for assets, liabilities, income, and expenses in the IFRS
Framework. This elevation of the importance of the [IFRS] Framework was added in the
2003 revisions to IAS 8.
The IFRS Framework
Scope
The IFRS Framework addresses:
the objective of financial reporting
the qualitative characteristics of useful financial information
the reporting entity
the definition, recognition and measurement of the elements from which financial
statements are constructed
concepts of capital and capital maintenance
[IFRS Framework, Scope]
complete the picture of the total change in the entity's economic resources and claims. [F
OB21]
The changes in an entity's economic resources and claims not resulting from financial
performance is presented in the statement of changes in equity. [See IAS 1.106-110]
Chapter 2: The Reporting entity
The chapter on the Reporting Entity will be reconsidered as part of the IASB's
comprehensive project on the framework.
Chapter 3: Qualitative characteristics of useful financial information
The qualitative characteristics of useful financial reporting identify the types of
information are likely to be most useful to users in making decisions about the reporting
entity on the basis of information in its financial report. The qualitative characteristics
apply equally to financial information in general purpose financial reports as well as to
financial information provided in other ways. [F QC1, QC3]
Financial information is useful when it is relevant and represents faithfully what it
purports to represent. The usefulness of financial information is enhanced if it is
comparable, verifiable, timely and understandable. [F QC4]
Fundamental qualitative characteristics
Relevance and faithful representation are the fundamental qualitative characteristics of
useful financial information. [F QC5]
Relevance
Relevant financial information is capable of making a difference in the decisions made by
users. Financial information is capable of making a difference in decisions if it has
predictive value, confirmatory value, or both. The predictive value and confirmatory value
of financial information are interrelated. [F QC6-QC10]
Materiality is an entity-specific aspect of relevance based on the nature or magnitude (or
both) of the items to which the information relates in the context of an individual entity's
financial report. [F QC11]
Faithful representation
General purpose financial reports represent economic phenomena in words and numbers,
To be useful, financial information must not only be relevant, it must also represent
faithfully the phenomena it purports to represent. This fundamental characteristic seeks
to maximise the underlying characteristics of completeness, neutrality and freedom from
error. [F QC12] Information must be both relevant and faithfully represented if it is to be
useful. [F QC17]
Enhancing qualitative characteristics
Comparability, verifiability, timeliness and understandability are qualitative
characteristics that enhance the usefulness of information that is relevant and faithfully
represented. [F QC19]
Comparability
Information about a reporting entity is more useful if it can be compared with a similar
information about other entities and with similar information about the same entity for
another period or another date. Comparability enables users to identify and understand
similarities in, and differences among, items. [F QC20-QC21]
Verifiability
Verifiability helps to assure users that information represents faithfully the economic
phenomena it purports to represent. Verifiability means that different knowledgeable and
independent observers could reach consensus, although not necessarily complete
agreement, that a particular depiction is a faithful representation. [F QC26]
Timeliness
Timeliness means that information is available to decision-makers in time to be capable
of influencing their decisions. [F QC29]
Understandability
Classifying, characterising and presenting information clearly and concisely makes it
understandable. While some phenomena are inherently complex and cannot be made
easy to understand, to exclude such information would make financial reports incomplete
and potentially misleading. Financial reports are prepared for users who have a
reasonable knowledge of business and economic activities and who review and analyse
the information with diligence. [F QC30-QC32]
Applying the enhancing qualitative characteristics
Enhancing qualitative characteristics should be maximised to the extent necessary.
However, enhancing qualitative characteristics (either individually or collectively) render
information useful if that information is irrelevant or not represented faithfully. [F QC33]
The cost constraint on useful financial reporting
Cost is a pervasive constraint on the information that can be provided by general purpose
financial reporting. Reporting such information imposes costs and those costs should be
justified by the benefits of reporting that information. The IASB assesses costs and
benefits in relation to financial reporting generally, and not solely in relation to individual
reporting entities. The IASB will consider whether different sizes of entities and other
factors justify different reporting requirements in certain situations. [F QC35-QC39]
Chapter 4: The Framework: the remaining text
Chapter 4 contains the remaining text of the Framework approved in 1989. As the project
to revise the Framework progresses, relevant paragraphs in Chapter 4 will be deleted and
replaced by new Chapters in the IFRS Framework. Until it is replaced, a paragraph in
Chapter 4 has the same level of authority within IFRSs as those in Chapters 1-3.
Underlying assumption
The IFRS Framework states that the going concern assumption is an underlying
assumption. Thus, the financial statements presume that an entity will continue in
operation indefinitely or, if that presumption is not valid, disclosure and a different basis
of reporting are required. [F 4.1]
The elements of financial statements
Financial statements portray the financial effects of transactions and other events by
grouping them into broad classes according to their economic characteristics. These
broad classes are termed the elements of financial statements.
The elements directly related to financial position (balance sheet) are: [F 4.4]
Assets
Liabilities
Equity
The elements directly related to performance (income statement) are: [F 4.25]
Income
Expenses
The cash flow statement reflects both income statement elements and some changes in
balance sheet elements.
Definitions of the elements relating to financial position
Asset. An asset is a resource controlled by the entity as a result of past events and
from which future economic benefits are expected to flow to the entity. [F 4.4(a)]
Liability. A liability is a present obligation of the entity arising from past events, the
settlement of which is expected to result in an outflow from the entity of resources
embodying economic benefits. [F 4.4(b)]
Equity. Equity is the residual interest in the assets of the entity after deducting all
its liabilities. [F 4.4(c)]
Definitions of the elements relating to performance
Income. Income is increases in economic benefits during the accounting period in
the form of inflows or enhancements of assets or decreases of liabilities that result
in increases in equity, other than those relating to contributions from equity
participants. [F 4.25(a)]