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Financial statement
Objective :
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.
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 1.7]
* Assets.
* Liabilities.
* Equity.
* Income and expenses, including gains and losses.
* Other changes in equity.
* Cash flows.
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 should include: [IAS 1.8]
* a statement of financial position at the end of the period,
* a statement of comprehensive income for the period,
* a statement of changes in equity for the period
* statement of cash flows for the period, and
* notes, comprising a summary of accounting policies and other explanatory notes.
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 as at the beginning of the earliest comparative period.
An entity may use titles for the statements other than those stated above.
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 1.9-10]
Sources : International Accounting Standard
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