Investor Presentaiton
CAT
THE INSTITUTE OF
CHARTERED ACCOUNTANTS OF SRI LANKA
•
LKAS 1- Presentation of Financial Statements
27th June 2012
DISCLOSURE OF ACCOUNTING POLICIES
An entity shall disclose in the summary of significant accounting policies:
⚫ the measurement basis (or bases)
.
the other accounting policies used
• Why we should inform the users about the measurement basis?
basis on which an entity prepares the financial statements significantly affects users' analysis
An entity shall disclose, in the summary of significant accounting policies or other notes,
the judgments, apart from those involving estimations, that management has made in the
process of applying the entity's accounting policies and that have the most significant
effect on the amounts recognised in the financial statements
.
•
whether financial assets are held-to-maturity investments - This has been deleted
after 2011 amendments
whether, in substance, particular sales of goods are financing arrangements and
therefore do not give rise to revenue
whether the substance of the relationship between the entity and a special purpose
entity indicates that the entity controls the special purpose entity
33
Scope of the Presentation
CA
THE INSTITUTE OF
CHARTERED ACCOUNTANTS OF SRI LANKA
CAPITAL
•
LKAS 1-Presentation of Financial Statements
27th June 2012
An entity shall disclose information that enables users of its financial statements to
evaluate the entity's objectives, policies and processes for managing capital
PUTTABLE FINANCIAL INSTRUMENTS CLASSIFIES AS EQUITY
For puttable financial instruments classified as equity instruments, an entity shall disclose
summary
quantitative
data about the
amount
classified as
equity
its objectives, policies
and processes for
managing its
obligation to
repurchase or
redeem the
instruments when
required to do so by
the instrument
holders, including
any changes from the
previous period
the expected cash
outflow on
redemption or
repurchase of that
class of financial
instruments
Information about
how the expected
cash outflow on
redemption or
repurchase was
determined
Scope of the Presentation
34
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