Ind AS 1 is a basic standard, which prescribes the overall requirements for the presentation of general purpose financial statements, i.e. components of financial statements, like, balance sheet, statement of profit and loss, statement of cash flows and notes comprising significant accounting policies, etc. Further, the standard prescribes the minimum disclosures that are to be made in the financial statements and explains the general features of the financial information. The presentation requirements specified in the standard are supplemented by the recognition, measurement and disclosure requirements set out in other Ind AS for specific transactions and other events.
Objective This standard determines the basis for the presentation of general purpose financial statements to ensure equivalence:
With the entity’s financial statements of preceding periods
Financial statements of other entities.
It sets out general requirements for the presentation of financial statements, guidelines for their structure and minimum requirements of their content.
Scope
This standard claims to all types of entities, including those that present:
Consolidated financial statements underInd AS 110 consolidated financial statements; and
Financial statements that are separated underInd AS 27.
This standard does not apply to the structure and content of compressed interim financial statements prepared underInd AS 35 except for para 15 to 35 of Ind AS 1.
This standard uses expressions that are suitable for profit-oriented entities, including public sector business entities.
Suppose entities with not for profit activities in the private sector or the public sector apply this standard. In that case, they may need to amend the descriptions used for particular line items in the financial statements and the financial statements themselves.
Similarly, the institution that does not have equity as defined in Ind AS 32 financial instruments
Presentation and entities whose share capital is not equity may need to adapt the financial statement presentations of members’ and unit holders’ interests.
Components of financial statements The financial statements shall comprise:
The balance sheet at the end of the period
Statement of profit and loss for the period
Statement of changes in equity for the period
Statement of cash flows for the period
Notes including a summary of significant accounting policies and other explanatory information
Relative information in respect of the preceding period as specified in paragraphs 38 and 38A
The balance sheet as at the beginning of the preceding period when an entity applies an accounting policy retrospectively
All statements are essential to be presented with equal eminence.
Structure and content Financial statements must be identified and distinguished from other information in the same published document and must specify:
Name of the reporting entity
Whether the financial statements support the individual entity or a group of entities
The date of the financial statements
The presentation currency
The level of rounding up, if any
Balance sheet
Present Current and non-current items separately; or
Present items in order of liquidity i.e. current and non- current assets / liabilities
Reporting period
Accounts presented at least annually
If longer or shorter, the entity must disclose the fact.
Statement of cashflows
Provides user of financial statements with cash flow information- refer to IND AS 7, statement of cash flows.
Statement of profit & loss
An entity shall present a single declaration of profit and loss, with profit or loss and other inclusive income presented in two sections.
Entities shall present an analysis of expense recognized in profit or loss using a classification based on the expense method’s nature.
Statement of changes in equity Information required to be presented:
Total income for the period, showingseparately explicable to owners or the parent and non-controlling interest.
For each constituent of equity, the effects of reflective application/restatement recognized under IND AS 8,accounting policies, changes in accounting estimates and mistakes.
Each component in equity reconciliation between the carrying amount at the beginning and end of the period wasindividually disclosing each change.
Amount of portionacceptedas distributions to owners during the period
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