Investor Presentaiton
CA
THE INSTITUTE OF
CHARTERED ACCOUNTANTS OF SRI LANKA
LKAS 1-Presentation of Financial Statements
27th June 2012
The components of Other Comprehensive Income include;
a) changes in revaluation surplus (see LKAS 16 Property, Plant and Equipment and LKAS 38 Intangible
Assets);
b) actuarial gains and losses on defined benefit plans recognized in accordance with paragraph 93A of LKAS
19 Employee Benefits
c) gains and losses arising from translating the financial statements of a foreign operation (see LKAS 21 The
Effects of Changes in Foreign Exchange Rates)
d) gains and losses on remeasuring available-for-sale financial assets (see LKAS 39 Financial Instruments:
Recognition and Measurement) - This will be replaced by the 2011 amendments as follows:
gains and losses from investments in equity instruments measured at fair value through other
comprehensive income in accordance with paragraph 5.7.5 of SLFRS 9 Financial Instruments;
e) the effective portion of gains and losses on hedging instruments in a cash flow hedge (see LKAS 39).
Apart from the above the following has been added to the list of component of Other Comprehensive
Income
f) for particular liabilities designated as at fair value through profit or loss, the amount of the change in
fair value that is attributable to changes in the liability's credit risk (see paragraph 5.7.7 of SLFRS 9).
Scope of the Presentation
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CA T
THE INSTITUTE OF
CHARTERED ACCOUNTANTS OF SRI LANKA
LKAS 1- Presentation of Financial Statements
27th June 2012
What are re classification adjustments?
Other SLFRSS specify whether and when amounts previously recognized in other comprehensive
income are reclassified to profit or loss. Such reclassifications are referred to in this Standard as
reclassification adjustments.
Ex:- Gains realized on the disposal of available-for-sale financial assets are included in profit or
loss of the current period. These amounts may have been recognized in other comprehensive
income as unrealized gains in the current or previous periods. Those unrealized gains must be
deducted from other comprehensive income in the period in which the realized gains are
reclassified to profit or loss to avoid including them in total comprehensive income twice
Impracticable Applying a requirement is impracticable when the entity cannot apply it after
making every reasonable effort to do so.
When it is impracticable to reclassify comparative amounts, an entity shall disclose:
(a)
the reason for not reclassifying the amounts, and
(b)
the nature of the adjustments that would have been made if the amounts had been
reclassified.
Scope of the Presentation.
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