Investor Presentaiton
CA T
THE INSTITUTE OF
CHARTERED ACCOUNTANTS OF SRI LANKA
LKAS 1-Presentation of Financial Statements
27th June 2012
Accrual Basis of Accounting
Presentation Consistency
Materiality and Aggregation
Offsetting
Entities are required to use accrual basis of accounting except for cash flow
information.
An entity is required to retain presentation and classification from one period to
the next.
Each material class of similar assets and items of dissimilar nature or function is
to be presented separately.
•
If a line item is not individually material, it is aggregated with other items
either in those statements or in the notes
An entity need not provide a specific disclosure required by a Standard if
the information is not material
Offsetting of assets and liabilities or income and expenses is not permitted
unless required by other IFRSS.
Measuring assets net of valuation allowances-for example, obsolescence
allowances on inventories and doubtful debts allowances on receivables-is not
offsetting.
Other transactions that do not generate revenue but are incidental to the main
revenue-generating activities.
Can presents the results of such transactions, when this presentation reflects
the substance of the transaction or other event, by netting any income with
related expenses arising on the same transaction
CAT
THE INSTITUTE OF
CHARTERED ACCOUNTANTS OF SRI LANKA
LKAS 1-Presentation of Financial Statements
27th June 2012
Scope of the Presentation
Frequency of reporting
Comparative Information
Consistency of presentation
Present a complete set of financial statements (including comparative
information) at least annually.
Shall disclose comparative information in respect of the previous period for all
amounts reported in the current period's financial statements.
In the event of Retrospective adjustment, it shall present, as a minimum, three
statements of financial position, two of each of the other statements, and
related notes. An entity presents statements of financial position as at:
(a) the end of the current period,
(b) the end of the previous period (which is the same as the beginning of the
current period),
(c) the beginning of the earliest comparative period.
Reclassification
In the event of change in presentation or classification of items, reclassify
comparative amounts unless reclassification is impracticable and disclose the
following:
a)the nature of the reclassification;
b)the amount of each item or class of items that is reclassified; and
c)the reason for the reclassification.
Consistency of presentation and classification of items in FS should be retained.
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