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DipIFRS ACCA course - IAS1 Presentation of Financial Statements No.13

DipIFRS ACCA course - IAS1 Presentation of Financial Statements No.13



FAIR PRESENTATION AND COMPLIANCE WITH IFRS:


Financial statements should present fairly both:
1. Financial position
2. Financial performance
3. Cash flows of an entity


A fair presentation requires faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for each of:
1. Assets.
2. Liabilities.
3. Income.
4. Expenses.


Prescribed in the framework. It is assumed that the application of IFRSs ... with additional disclosure when necessary ... results in financial statements that achieve fair presentation.


IAS 1 requires an entity whose financial statement complies with IFRSs to provide a statement .
1. Explicit
2. Unreserved
With this commitment in the notes.


Financial statements cannot be qualified as IFRS-compliant unless they comply with all IFRS requirements which include:


1. International Financial Reporting Standards.
2. International Accounting Standards.
3. IFRIC Interpretations.
4. SIC Interpretations.


Inappropriate accounting policies are not corrected either by:


1. Disclosure of the accounting policies used.
2. Or by notes.
3. Or explanatory material.


IAS 1 recognizes that in extremely rare circumstances, management may conclude that compliance with IFRS requirements would be misleading to the extent that it would conflict with the objective of the financial statements set out in the framework.


In such a case, the entity shall not comply with the requirements of the International Financial Reporting Standards with detailed disclosure of the nature, causes and impact of the non-compliance.


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