According to IAS 1 (International Accounting Standard 1), "Presentation of Financial Statements," the components of a complete set of financial statements are:
1. **Statement of Financial Position (Balance Sheet):**
- **Assets:** Current and non-current assets such as cash, receivables, inventory, property, plant, and equipment.
- **Liabilities:** Current and non-current liabilities including accounts payable, loans, and other obligations.
- **Equity:** Equity attributable to owners of the parent and non-controlling interests, including issued capital, reserves, and retained earnings.
2. **Statement of Profit or Loss and Other Comprehensive Income (Income Statement):**
- **Profit or Loss:** Revenues, expenses, gains, and losses.
- **Other Comprehensive Income:** Items of income and expense that are not recognized in profit or loss, such as revaluation surplus, foreign currency translation adjustments, and gains or losses on remeasuring financial assets.
This statement can be presented in one of two ways:
- A single statement of profit or loss and other comprehensive income.
- Two separate statements: an income statement (showing components of profit or loss) and a statement of comprehensive income (beginning with profit or loss and showing components of other comprehensive income).
3. **Statement of Changes in Equity:**
- Shows the reconciliation between the opening and closing balances of equity, detailing changes due to profit or loss, other comprehensive income, transactions with owners (such as dividends and issuance of shares), and changes in ownership interests in subsidiaries.
4. **Statement of Cash Flows:**
- **Operating Activities:** Cash flows from primary revenue-generating activities, including receipts from customers and payments to suppliers and employees.
- **Investing Activities:** Cash flows from the acquisition and disposal of long-term assets and investments.
- **Financing Activities:** Cash flows from transactions affecting the equity and borrowings of the entity, such as issuing shares, borrowing, and repayment of loans.
5. **Notes to the Financial Statements:**
- Provide information about the basis of preparation of the financial statements and specific accounting policies used.
- Disclose additional information necessary for a fair presentation, including descriptions of items in the financial statements, risk management policies, and other relevant details.
6. **Statement of Financial Position at the Beginning of the Earliest Comparative Period:**
- Required when an entity applies an accounting policy retrospectively, makes a retrospective restatement of items in its financial statements, or reclassifies items in its financial statements.
These components ensure that financial statements provide a comprehensive and clear view of the financial performance, position, and cash flows of an entity, enabling stakeholders to make informed decisions.
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