1245APPENDIX Fact sheets

FACT SHEET AASB 101 Presentation of Financial Statements

OBJECTIVEThe objective of this standard is to prescribe the basis for the presentation of general purpose fi nancial state-ments to ensure comparability both with the entity’s fi nancial statements of previous periods and with the fi nancial statements of other entities.

KEY REPORTING REQUIREMENTS 1. The objective of fi nancial statements is to provide information about the fi nancial position, fi nancial

performance and cash fl ows of an entity that is useful to a wide range of users in making economic decisions. To meet that objective, fi nancial statements provide information about an entity’s (para. 9):

assets• liabilities• equity• income and expenses, including gains and losses• other changes in equity• cash fl ows. •

That information, along with other information in the notes, assists users of fi nancial statements in predicting the entity’s future cash fl ows and, in particular, their timing and certainty.

2. A complete set of fi nancial statements comprises (para. 10):a statement of fi nancial position as at the end of the period• a statement of comprehensive income for the period• a statement of changes in equity for the period• a statement of cash fl ows for the period• notes, comprising a summary of signifi cant accounting policies and other explanatory information, and• a statement of fi nancial position as at the beginning of the earliest comparative period when an entity • applies an accounting policy retrospectively or makes a retrospective restatement of items in its fi nan-cial statements, or when it reclassifi es items in its fi nancial statements.

An entity may use titles for the statements other than those used in this standard. 3. General features:

Fair presentation and compliance with IFRSs (paras. 15–24):• Information should be presented fairly and in accordance with the defi nitions and recognition −criteria of the elements of fi nancial statements.The application of IFRSs with additional disclosure as needed is assumed to achieve the fair pres- −entation above.In the rare case that compliance is not achieved, management can state which standard the state- −ments do not comply with and why not, and provide adjustments to show the differences as needed.

Management should assess if the entity is a going concern and prepare statements accordingly (paras. • 25–26).Statements should be prepared using accrual accounting (paras. 27–28).• Similar classes of items should be reported separately if material; dissimilar items can only be • aggregated when each individual item is immaterial (paras. 29–31).Assets or liabilities should not be offset unless permitted by another standard (paras. 32–35).• An entity should report annually. If not, it should state why not and that the amounts presented may • not be entirely comparable (paras. 36–37).An entity should provide comparative information (normally the previous year’s fi nancial statements) • (paras. 38–44).Statements should be consistent from year to year unless a change would make the statements more • relevant and/or reliable, or is required by a change in a standard (paras. 45–46).Each statement should be clearly identifi ed and display which entity or group of entities it applies to • (paras. 47–53).

3_60_18263_AAS2e_Appendix.indd 12453_60_18263_AAS2e_Appendix.indd 1245 4/23/09 5:31:09 AM4/23/09 5:31:09 AM

APPENDIX Fact sheets1246

4. Statement of fi nancial position:The statement can be either in current/non-current format (normal) or liquidity formats (normally • used by fi nancial institutions) if more reliable.Current assets are cash, cash equivalents, held for trading, or expected to be collected during the • normal operating cycle (12 months).Current liabilities are expected to be settled or held for trade during the normal operating cycle.• Information concerning share capital and reserves can be disclosed either in the statement of fi nancial • position or statement of changes in equity.

5. Statement of comprehensive income:The statement can be either one statement of comprehensive income, or two separate statements • showing income and other comprehensive income.

6. Statement of changes in equity. 7. Statement of cash fl ows (see AASB 107). 8. The notes to fi nancial statements must show (list is in suggested order):

a statement of compliance with Australian Accounting Standards • a summary of signifi cant accounting policies applied, including: •

the measurement basis (or bases) used in preparing the fi nancial statements, and −the other accounting policies used that are relevant to an understanding of the fi nancial statements −

supporting information for items presented in the statement of fi nancial position, statement of • comprehensive income, income statement (if presented), statement of changes in equity and statement of cash fl ows, in the order in which each statement and each line item is presented, and other disclosures, including: •

contingent liabilities and unrecognised contractual commitments −non-fi nancial disclosures, such as the entity’s fi nancial risk management objectives and policies −judgements used in applying accounting policies −key areas of uncertainly regarding any assumptions made −

if not disclosed elsewhere in information published with the fi nancial statements: • domicile of the enterprise −country of incorporation −address of registered offi ce or principal place of business −description of the enterprise’s operations and principal activities −name of the enterprise’s parent and the ultimate parent if it is part of a group −details of the auditing arrangements −share dividends and franking credits. −

9. Minimum requirements for each statement are shown in the table opposite.

CHANGES ON THE HORIZONThis is a new standard so should not have any major amendments in the near future. However, it is often subject to minor amendments due to fl ow on effects from changes in other standards or the introduction of new standards.

GAAP DIFFERENCESA number of paragraphs have been deleted, or added, by the AASB, to ensure compliance with Australian corporation law.

3_60_18263_AAS2e_Appendix.indd 12463_60_18263_AAS2e_Appendix.indd 1246 4/23/09 5:31:10 AM4/23/09 5:31:10 AM

1247APPENDIX Fact sheets

Statement of fi nancial positionStatement of comprehensive income

Statement of changes in equity

In the statement In the statement In the statement

(a) property, plant and equipment

(b) investment property (c) intangible assets (d) fi nancial assets (e) investments accounted for

using the equity method (f) biological assets (g) inventories (h) trade and other receivables (i) cash and cash equivalents (j) the total of assets classifi ed

as held for sale (k) trade and other payables (l) provisions (m) fi nancial liabilities (n) liabilities and assets for

current tax (o) deferred tax liabilities and

deferred tax assets (p) liabilities included in

disposal groups classifi ed as held for sale

(q) non-controlling interest, presented within equity

(r) issued capital and reserves attributable to owners of the parent

(a) revenue (b) fi nance costs (c) share of the profi t or loss of

associates and joint ventures accounted for using the equity method

(d) tax expense (e) a single amount comprising

the total of: (i) the post-tax profi t or

loss of discontinued operations, and

(ii) the post-tax gain or loss recognised on the measurement to fair value less costs to sell on the disposal of the assets or disposal group(s) constituting the discontinued operation

(f) profi t or loss (g) each component of other

comprehensive income classifi ed by nature

(h) share of the other comprehensive income of associates and joint ventures accounted for using the equity method, and

(i) total comprehensive income

Also (a) profi t or loss for the period

attributable to: (i) non-controlling interest,

and (ii) owners of the parent, and (b) total comprehensive income

for the period attributable to: (i) non-controlling interest,

and (ii) owners of the parent

(a) total comprehensive income for the period, showing separately the total amounts attributable to owners of the parent and to non-controlling interest

(b) for each component of equity, the effects of retrospective application or retrospective restatement recognised in accordance with AASB 108

(c) the amounts of transactions with owners in their capacity as owners, showing separately contributions by and distributions to owners, and

(d) for each component of equity, a reconciliation between the carrying amount at the beginning and the end of the period, separately disclosing each change

Either in the statement or in the notes

Either in the statement or in the notes

Either in the statement or in the notes

Further subclassifi cations of line items in line with the operations of the entity

When items of income or expense are material, an entity shall disclose their nature and amount separately

The amount of dividends recognised as distributions to owners during the period, and the related amount per share

3_60_18263_AAS2e_Appendix.indd 12473_60_18263_AAS2e_Appendix.indd 1247 4/23/09 5:31:10 AM4/23/09 5:31:10 AM