section 3 financial statement presentation

FRS 102 Summary – Section 3 – Financial Statement Presentation

by Des O'Neill | Jan 19, 2016 | FRS102.com Blog

Section 3: Financial Statement Presentation

Section 3 explains that the financial statements of an entity shall give a true and fair view, what a complete set of financial statements is and what compliance with FRS 102 requires.

What is different?

Under FRS 102 it gives a choice to call the primary statements a balance sheet or a statement of financial position and a profit and loss account or statement of comprehensive income.

A statement of change in equity is now presented as a primary statement.

FRS 102 makes it clear when assessing going concern the minimum length of the time the directors need to look at in order to meet the definition of the foreseeable future is 12 months from the date of approval of the financial statements. This was not made explicit under old GAAP, however it was applied in practice.

An entity where financial statements comply with the requirements of FRS 102 shall make an explicit and unreserved statement of compliance in the notes.

A public benefit entity applying the specific requirements applicable to the public benefit entities shall make an explicit and unreserved statement that it is a public benefit entity.

What are the key points?

The fundamental principles for the preparation of financial statements that result in the faithful representation of transactions, other events and conditions, are the going concern assumption, consistency of presentation, comparability and materiality. Where there are doubts about going concern this needs to be stated in the financial statements.

A complete set of financial statements includes each of the following for the current period and the previous comparable period:

Where financial statements are prepared for periods longer or shorter than one year, the entity must disclose; that fact, the reason for using a longer or shorter period and the fact that comparable amounts presented in the financial statements are not entirely comparable.

Financial statements are required to make clear the name of the reporting entity, the presentational currency, date of the end of the reporting period, whether individual or group accounts are covered and the level of rounding, if any used.

What do accountants need to do?

Be aware of the requirements for FRS 102 financial statements presentation so they can prepare financial statements on this basis and advise clients.

What do companies need to do?

Be aware of the requirements for FRS 102 financial statements presentation and where necessary consult with the company accountant so that the entity prepares financial statements in compliance with FRS 102.

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Chapter 1: General presentation and disclosure requirements

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IAS 1 — Presentation of Financial Statements

IAS 1 Presentation of Financial Statements sets out the overall requirements for financial statements, including how they should be structured, the minimum requirements for their content and overriding concepts such as going concern, the accrual basis of accounting and the current/non-current distinction. The standard requires a complete set of financial statements to comprise a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity and a statement of cash flows.

IAS 1 was reissued in September 2007 and applies to annual periods beginning on or after 1 January 2009.

History of IAS 1

Related interpretations.

Amendments under consideration

Summary of IAS 1

Objective of ias 1.

The objective of IAS 1 (2007) 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 requirements for the presentation of financial statements, guidelines for their structure and minimum requirements for their content. [IAS 1.1] Standards for recognising, measuring, and disclosing specific transactions are addressed in other Standards and Interpretations. [IAS 1.3]

IAS 1 applies to all general purpose financial statements that are prepared and presented in accordance with International Financial Reporting Standards (IFRSs). [IAS 1.2]

General purpose financial statements are those intended to serve users who are not in a position to require financial reports tailored to their particular information needs. [IAS 1.7]

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 1.9]

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 includes: [IAS 1.10]

An entity may use titles for the statements other than those stated above. All financial statements are required to be presented with equal prominence. [IAS 1.10]

When an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements, it must also present a statement of financial position (balance sheet) as at the beginning of the earliest comparative period.

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 1.14]

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 1.15]

IAS 1 requires an entity whose financial statements comply with IFRSs to make an explicit and unreserved statement of such compliance in the notes. Financial statements cannot be described as complying with IFRSs unless they comply with all the requirements of IFRSs (which includes International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations). [IAS 1.16]

Inappropriate accounting policies are not rectified either by disclosure of the accounting policies used or by notes or explanatory material. [IAS 1.18]

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 1.19-21]

Going concern

The Conceptual Framework notes that financial statements are normally prepared assuming the entity is a going concern and will continue in operation for the foreseeable future. [Conceptual Framework, paragraph 4.1]

IAS 1 requires management to make an assessment of an entity's ability to continue as 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 1.25]

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 1.27]

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 1.45]

Materiality and aggregation

Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity. [IAS 1.7]*

Each material class of similar items must be presented separately in the financial statements. Dissimilar items may be aggregated only if they are individually immaterial. [IAS 1.29]

However, information should not be obscured by aggregating or by providing immaterial information, materiality considerations apply to the all parts of the financial statements, and even when a standard requires a specific disclosure, materiality considerations do apply. [IAS 1.30A-31]

* Clarified by Definition of Material (Amendments to IAS 1 and IAS 8) , effective 1 January 2020.

Assets and liabilities, and income and expenses, may not be offset unless required or permitted by an IFRS. [IAS 1.32]

Comparative information

IAS 1 requires that comparative information to be disclosed in respect of the previous period for all amounts reported in the financial statements, both on the face of the financial statements and in the notes, unless another Standard requires otherwise. Comparative information is provided for narrative and descriptive where it is relevant to understanding the financial statements of the current period. [IAS 1.38]

An entity is required to present at least two of each of the following primary financial statements: [IAS 1.38A]

* A third statement of financial position is required to be presented if the entity retrospectively applies an accounting policy, restates items, or reclassifies items, and those adjustments had a material effect on the information in the statement of financial position at the beginning of the comparative period. [IAS 1.40A]

Where comparative amounts are changed or reclassified, various disclosures are required. [IAS 1.41]

Structure and content of financial statements in general

IAS 1 requires an entity to clearly identify: [IAS 1.49-51]

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 entity must disclose the reason for the change and state that amounts are not entirely comparable. [IAS 1.36]

Statement of financial position (balance sheet)

Current and non-current classification

An entity must normally present a classified statement of financial position, separating current and non-current assets and liabilities, unless presentation based on liquidity provides information that is reliable. [IAS 1.60] In either case, if an asset (liability) category combines 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 1.61]

Current assets are assets that are: [IAS 1.66]

Current liabilities are those: [IAS 1.69]

When a long-term debt is expected to be refinanced under an existing loan facility, and the entity has the discretion to do so, the debt is classified as non-current, even if the liability would otherwise be due within 12 months. [IAS 1.73]

If a liability has become payable on demand because an entity has breached an undertaking under a long-term loan agreement on or before the reporting date, the liability is current, even if the lender has agreed, after the reporting date and before the authorisation of the financial statements for issue, not to demand payment as a consequence of the breach. [IAS 1.74] However, the liability is classified as non-current if the lender agreed by the reporting date to provide a period of grace ending at least 12 months after the end of the reporting period, within which the entity can rectify the breach and during which the lender cannot demand immediate repayment. [IAS 1.75]

Settlement by the issue of equity instruments does not impact classification. [IAS 1.76B]

The line items to be included on the face of the statement of financial position are: [IAS 1.54]

Additional line items, headings and subtotals may be needed to fairly present the entity's financial position. [IAS 1.55]

* Added by Disclosure Initiative (Amendments to IAS 1) , effective 1 January 2016.

Further sub-classifications of line items presented are made in the statement or in the notes, for example: [IAS 1.77-78]:

Format of statement

IAS 1 does not prescribe the format of the statement of financial position. Assets can be presented current then non-current, or vice versa, and liabilities and equity can be presented current then non-current 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.

Share capital and reserves

Regarding issued share capital and reserves, the following disclosures are required: [IAS 1.79]

Additional disclosures are required in respect of entities without share capital and where an entity has reclassified puttable financial instruments. [IAS 1.80-80A]

Statement of profit or loss and other comprehensive income

Concepts of profit or loss and comprehensive income

Profit or loss is defined as "the total of income less expenses, excluding the components of other comprehensive income". Other comprehensive income is defined as comprising "items of income and expense (including reclassification adjustments) that are not recognised in profit or loss as required or permitted by other IFRSs". Total comprehensive income is defined as "the change in equity during a period resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners". [IAS 1.7]

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 1.88] Some IFRSs require or permit that some components to be excluded from profit or loss and instead to be included in other comprehensive income.

In addition, IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors requires the correction of errors and the effect of changes in accounting policies to be recognised outside profit or loss for the current period. [IAS 1.89]

Choice in presentation and basic requirements

An entity has a choice of presenting:

The statement(s) must present: [IAS 1.81A]

Profit or loss section or statement

The following minimum line items must be presented in the profit or loss section (or separate statement of profit or loss, if presented): [IAS 1.82-82A]

Expenses recognised in profit or loss should be analysed either by nature (raw materials, staffing costs, depreciation, etc.) or by function (cost of sales, selling, administrative, etc). [IAS 1.99] If an entity categorises by function, then additional information on the nature of expenses – at a minimum depreciation, amortisation and employee benefits expense – must be disclosed. [IAS 1.104]

Other comprehensive income section

The other comprehensive income section is required to present line items which are classified by their nature, and grouped between those items that will or will not be reclassified to profit and loss in subsequent periods. [IAS 1.82A]

An entity's share of OCI of equity-accounted associates and joint ventures is presented in aggregate as single line items based on whether or not it will subsequently be reclassified to profit or loss. [IAS 1.82A]*

* Clarified by Disclosure Initiative (Amendments to IAS 1) , effective 1 January 2016.

When an entity presents subtotals, those subtotals shall be comprised of line items made up of amounts recognised and measured in accordance with IFRS; be presented and labelled in a clear and understandable manner; be consistent from period to period; not be displayed with more prominence than the required subtotals and totals; and reconciled with the subtotals or totals required in IFRS. [IAS 1.85A-85B]*

Other requirements

Additional line items may be needed to fairly present the entity's results of operations. [IAS 1.85]

Items cannot be presented as 'extraordinary items' in the financial statements or in the notes. [IAS 1.87]

Certain items must be disclosed separately either in the statement of comprehensive income or in the notes, if material, including: [IAS 1.98]

Statement of cash flows

Rather than setting out separate requirements for presentation of the statement of cash flows, IAS 1.111 refers to IAS 7 Statement of Cash Flows .

Statement of changes in equity

IAS 1 requires an entity to present a separate statement of changes in equity. The statement must show: [IAS 1.106]

* An analysis of other comprehensive income by item is required to be presented either in the statement or in the notes. [IAS 1.106A]

The following amounts may also be presented on the face of the statement of changes in equity, or they may be presented in the notes: [IAS 1.107]

Notes to the financial statements

The notes must: [IAS 1.112]

Notes are presented in a systematic manner and cross-referenced from the face of the financial statements to the relevant note. [IAS 1.113]

IAS 1.114 suggests that the notes should normally be presented in the following order:*

* Disclosure Initiative (Amendments to IAS 1) , effective 1 January 2016, clarifies this order just to be an example of how notes can be ordered and adds additional examples of possible ways of ordering the notes to clarify that understandability and comparability should be considered when determining the order of the notes.

Other disclosures

Judgements and key assumptions

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 1.122]

Examples cited in IAS 1.123 include management's judgements in determining:

An entity must also disclose, in the notes, information about the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. [IAS 1.125] These disclosures do not involve disclosing budgets or forecasts. [IAS 1.130]

In addition to the distributions information in the statement of changes in equity (see above), the following must be disclosed in the notes: [IAS 1.137]

Capital disclosures

An entity discloses information about its objectives, policies and processes for managing capital. [IAS 1.134] To comply with this, the disclosures include: [IAS 1.135]

Puttable financial instruments

IAS 1.136A requires the following additional disclosures if an entity has a puttable instrument that is classified as an equity instrument:

Other information

The following other note disclosures are required by IAS 1 if not disclosed elsewhere in information published with the financial statements: [IAS 1.138]

Terminology

The 2007 comprehensive revision to IAS 1 introduced some new terminology. Consequential amendments were made at that time to all of the other existing IFRSs, and the new terminology has been used in subsequent IFRSs including amendments. IAS 1.8 states: "Although this Standard uses the terms 'other comprehensive income', 'profit or loss' and 'total comprehensive income', an entity may use other terms to describe the totals as long as the meaning is clear. For example, an entity may use the term 'net income' to describe profit or loss." Also, IAS 1.57(b) states: "The descriptions used and the ordering of items or aggregation of similar items may be amended according to the nature of the entity and its transactions, to provide information that is relevant to an understanding of the entity's financial position."

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FINANCIAL REPORTING

Shaking Up Financial Statement Presentation

An early look at the fasb and iasb financial statement project.

In April 2004, FASB and the International Accounting Standards Board (IASB) created a joint project on financial statement presentation. The project is part of the memorandum of understanding between the two bodies that set out a road map for convergence between IFRS and U.S. GAAP. The goal is to create a common standard for the form, content, classification, aggregation and display of line items on the face of financial statements. The new guidelines are intended to help equity investors and other financial statement users better understand a business's past and present financial position and assess potential future cash flow.

The project applies to public and private business entities, but not to nonbusiness entities such as not-for-profits or definedbenefit plans. It addresses the organization and presentation of information and the need for totals and subtotals in the financial statements, including the net income or loss subtotal.

PHASE A The work is being conducted in three phases. The boards completed deliberations on Phase A in December 2005, and on Sept. 6, 2007, the IASB published a revised version of IAS 1, Presentation of Financial Statements . This brought IAS 1 largely in line with FASB Statement no. 130, Reporting Comprehensive Income . FASB decided not to issue an exposure draft on its Phase A conclusions, but rather to issue a combined exposure draft for Phases A and B.

FASB, however, did issue a set of tentative conclusions. Most significantly, a complete set of financial statements for a reporting period should include a statement of financial position, a statement of comprehensive income, a statement of changes in equity and a statement of cash flows. In addition, each financial statement should be shown with equal prominence, and a minimum of two years comparative information is required.

In contrast to IAS 1 (revised 2007), FASB would require a single statement of earnings and comprehensive income and require a subtotal for net income. IAS 1 (revised 2007) allows the presentation of nonowner changes in assets and liabilities to be presented in a single statement of comprehensive income or in two statements- a statement of profit or loss and a second statement starting with profit or loss and presenting components of other comprehensive income.

FASB also tentatively decided to allow (but provides no guidance for) voluntary presentation of financial information beyond the required two-year minimum for annual reports and to require the presentation of basic and diluted earnings per share on the statement of earnings and comprehensive income as the only pershare measure. FASB decided to continue to allow (but not require) the disclosure of basic and diluted comprehensive income per share in the notes and to require the disclosure of the weighted average number of shares used as the denominator in the calculation of per-share ratios in the notes.

PHASE B On June 30, 2008, the boards issued tentative and preliminary views on how financial information will be presented. The first working principle is that financial statements should portray a cohesive financial picture of an entity. Ideally, financial statements should be cohesive at the line-item level, thus to the extent practical, an entity would label line items similarly across the financial statements and present categories and sections in the same order in each financial statement. Classifications are based on the different functional activities of an entity using terminology similar to today’s cash flow statements (see Exhibit 1).

Exhibit 1

The business section includes both operating and investing categories. Operating assets and liabilities are those that management views as related to the central purpose or purposes for which the entity is in business and changes in those assets and liabilities. The investing category would include all assets and liabilities that management views as unrelated to the central purpose for which the entity is in business and any changes in those assets and liabilities. An entity would use its investing assets and liabilities to generate a return but would not use them in its primary revenue and expense generating activities. The financing section would include only financial assets and financial liabilities that management views as part of the financing of the entity’s business activities. Those are referred to as financing assets and liabilities.

Management would choose the classification that best reflects their views of what constitutes its business (operating and investing) and financing activities and would explain them as a matter of accounting policy in the footnotes. Any changes in classification will be implemented through retrospective application to prior periods consistent with FASB Statement no. 154, Accounting Changes and Error Corrections , and IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors.

Extraordinary items (see " Extraordinary Items Share Exclusive Company ," JofA , May 07, page 80) will not be presented in a separate section or category because the concept of extraordinary items is being eliminated. See the set of financial statements for a hypothetical manufacturing company in Exhibits 2–5, which highlight the proposed changes.

STATEMENT OF FINANCIAL POSITION (BALANCE SHEET): EXHIBIT 2 The first major difference in the statement of financial position (balance sheet) is that assets and liabilities are not separated into distinct sections-no assets on the left side of the page with liabilities and equity on the right side or assets on the top half of the page with liabilities and equity below. The sections and categories contain both assets and liabilities that are netted together.

Assets are positive numbers, while liabilities and equity are negative. Totals are presented for each category and section, but subtotals for short-term assets/liabilities or grand totals for assets/liabilities will be disclosed either at the bottom of the statement or in the footnotes.

The balance sheet, of course, still balances. In the hypothetical example used in Exhibit 2, total assets in 2007 for the hypothetical Hutch Manufacturing Co. are $347,500, total liabilities are $184,000, and the resulting equity is $163,500. Totals for short-term assets, short-term liabilities, long-term assets and long-term liabilities may be disclosed either at the bottom of the statement or in the footnotes. Each separate line item should use only one measurement basis.

Exhibit 2

STATEMENT OF COMPREHENSIVE INCOME: EXHIBIT 3 Within the sections and categories an entity will present its revenues, expenses, gains and losses based on its primary activities or functions (selling, general, administrative, etc.). Further disaggregation based on nature (labor and benefits, materials, energy, occupancy, etc.) may be shown if it improves the usefulness of the statement or if the company does not engage in a variety of functions such as providing mainly services.

FASB and the IASB decided that the financial statement presentation project should not alter existing standards relating to what items are recognized outside of profit or loss. Because of that stance, existing guidance remains unchanged on presentation of other comprehensive income items in a statement of comprehensive income and on the recycling mechanism. An entity should present a stand-alone statement of comprehensive income with OCI items presented in a separate section. Within that OCI section an entity should indicate, parenthetically or otherwise, which category-operating, investing or financing each OCI item relates to.

The income taxes section in the statement of financial position would include current and deferred income tax assets and liabilities recognized pursuant to FASB Statement no. 109, Accounting for Income Taxes , and IAS 12, Income Taxes . Cash flows related to those assets and liabilities would be presented in the income tax section of the statement of cash flows. In the statement of comprehensive income, income taxes would continue to be allocated among continuing operations, discontinued operations, items of other comprehensive income, and items charged or credited directly to equity using existing guidance on intraperiod tax allocation. Consistent with the statement of financial position, a total would be presented for each category and section, and this statement would include a total for comprehensive income.

Exhibit 3

STATEMENT OF CASH FLOWS: EXHIBIT 4 The format is similar to FASB Statement no. 95, Statement of Cash Flows , and IAS 7, Cash Flow Statements , with two major changes. First, the notion of cash equivalents is scrapped. It is cash only. In addition, cash flow will be presented in the direct method. Under Statement no. 95, cash flow is reported under either the indirect method (starting with net income) or the direct method (starting with top-line revenue). The new model will start at the top of the statement of comprehensive income and work through each new section.

Exhibit 4

This does not mean that the indirect method will be eliminated. As currently required by Statement no. 95, cash flows from operations must be reconciled to operating income as a supplement to the direct method. The boards are expected to seek input to determine if this requirement is still needed, given the new reconciliation statement.

RECONCILIATION STATEMENT: EXHIBIT 5 A proposed new schedule would supply investors and analysts more information for predicting future cash flows. This schedule, as shown in Exhibit 5 , reconciles the cash flow statement less transactions from equity using the direct method (column A) to the statement of comprehensive income (column E) and includes three reconciling columns.

The first reconciling column (B) is accruals, allocations and other charges not from remeasurements. Examples of items in column B include timing differences such as changes in accounts receivable/ accounts payable and systematic allocations such as depreciation, purchases of property, plant and equipment, along with other changes in business operating assets and liabilities. A second reconciling column (C) contains recurring fair value changes (termed valuation adjustment by the IASB) such as changes in the fair value of available-for-sale securities. The final reconciling column (D) is for remeasurements other than recurring fair value changes. This would include asset impairments for items such as goodwill and discontinued operations.

PHASE C The joint project team consists of staff from both boards and the Accounting Standards Board of Japan, which has set a goal with the IASB of converging their respective sets of standards by June 30, 2011. The boards will begin work on Phase C on the presentation and display of interim financial information for U.S. GAAP toward the end of Phase B. Tentatively, Phase C will address:

The joint project will not address the recognition or measurement of assets, liabilities or transactions provided in other standards. In addition, the scope of the project does not include the notes to the financial statements, management discussion and analysis, pro forma measures, segment reporting, financial ratios, forecasts, nonfinancial information and ratios, and specific industry financial statements, except for how the decisions of this project may affect the financial statements of financial institutions. The boards realize, however, that since changes are being made to the face of the financial statements, changes to existing disclosure requirements may be needed in relation to the notes and segment reporting.

section 3 financial statement presentation

EXECUTIVE SUMMARY

n The proposed financial statements are intended to help predict cash flows for equity valuation. These statements shift focus from net income to total comprehensive income, as all other comprehensive income items are now presented on the face of the statement.

n On June 30, 2008, FASB and the IASB issued tentative and preliminary views on how financial information will be presented. The first working principle is that financial statements should portray a cohesive financial picture of an entity. An entity would label line items similarly across the financial statements and present categories and sections in the same order in each of the financial statements.

n The boards decided that the financial statement presentation project should not seek to alter existing standards relating to what items are recognized outside of profit or loss. Because of that stance, existing guidance remains unchanged on presentation of other comprehensive income (OCI) items in a statement of comprehensive income and on the recycling mechanism.

n The proposed format of the cash flow statement is similar to FASB Statement no. 95 and IAS 7 with two major changes. First, the notion of cash equivalents is scrapped. In addition, cash flow will be presented in the direct method.

n A proposed new schedule would offer investors and analysts more information for predicting future cash flows. This schedule reconciles the cash flow statement less transactions from equity using the direct method to the statement of comprehensive income and includes three reconciling columns.

Guy McClain , CPA, Ph.D., and Andrew J. McLelland , CPA, CMA, Ph.D., are assistant professors at Auburn University's School of Accountancy in Auburn, Ala. Their e-mail addresses, respectively, are [email protected] and [email protected] .

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IAS1 FINANCIAL STATEMENT PRESENTATION 3
video 1 of financial statements of a company (chapter 1)
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Financial Statements: example of an actual company

COMMENTS

Module 3—Financial Statement Presentation
Section 3 Financial Statement Presentation of the IFRS for SMEs Standard issued by the International Accounting Standards Board in October 2015.
FRS 102 Summary
Section 3 explains that the financial statements of an entity shall give a true and fair view, what a complete set of financial statements is
1.1 Financial statement presentation and disclosure requirements
1.1.3 Basis of presentation. S-X 4-01(a)(1) requires financial statements filed with the SEC to be presented in accordance with US GAAP, unless the SEC has
About the Financial statement presentation guide & Full guide PDF
FSP 3, Income statement. The order of certain sections within FSP 3 was rearranged, while certain sections were also combined.
CHAPTER 3 Financial Statement Presentation
The purpose of this Chapter is to provide guidance on the presentation and disclosure of information in the financial statements.
Financial Reporting Manual
The information presented also may not reflect the views of other Divisions and Offices at the Commission. The guidance is not a rule, regulation or statement
Division of Corporation Finance Financial Reporting Manual
Sections of the Financial Reporting Manual have been updated as of December 1, 2017. ... 6330 Interim Financial Statements Presented by IFRS Filers.
IAS 1
IAS 1 sets out the overall requirements for financial statements, ... or by presenting the profit or loss section in a separate statement of profit or loss
Presentation of Financial Statements (Topic 205), Financial Services
The term affiliateaffiliate means an affiliated personaffiliated person as defined in section 2(a)(3) of the. Investment Company Act of 1940
Shaking Up Financial Statement Presentation
Each separate line item should use only one measurement basis. Exhibit 2. STATEMENT OF COMPREHENSIVE INCOME: EXHIBIT 3. Within the sections and