Investor Presentaiton

CAT THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SRILANKA LKAS 1- Presentation of Financial Statements 27th June 2012 • Titles of financial statements The exposure draft of 2006 proposed changes to the titles of some of the financial statements- from "balance sheet' to 'statement of financial position', from 'income statement' etc. Proposed new titles better reflect the function of each financial statement. Ex: 'Statement of Financial Position' not only better reflects the functions of the statement but is consistent with the Framework for the preparation and presentation of financial statements which contains several references to 'financial position' • An entity may use titles for the statements other than those used in this standard (section 10) CAT THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SRI LANGA LKAS 1-Presentation of Financial Statements 27th June 2012 Scope of the Presentation 11 Fair Presentation and Compliance with SLFRS Going Concern General Features Financial statements are required to be presented fairly as set out in the frame-work and in accordance with SLFRS and are required to comply with all requirements of SLFRSS. Fair presentation requires entities to select appropriate accounting policies as per LKAS 8 explicit and unreserved statement of such compliance in the notes. An entity cannot rectify inappropriate accounting policies either by disclosure of the accounting policies used or by notes or explanatory material 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 (Sec. 20). Financial statements are required to be prepared on a going concern basis (unless entity is in liquidation or has ceased trading or there is an indication that the entity is not a going concern). To assess whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but is not limited to, twelve months from the end of the reporting period. Scope of the Presentation 12 6

View entire presentation