IAS 1 Presentation of Financial Statements
Presentation of Financial Statements sets out the overall requirements for the presentation of financial statements, guidelines for their structure, and minimum requirements for their content.
- Access the standard
- Summary
- Current proposals
- Recent amendments
- Related IFRIC interpretations
- UK reduced disclosures – FRS 101
- ICAEW factsheets and guides
- ICAEW articles
- eBooks
- Other resources
Access the standard
- 2023 Issued Standard – IAS 1
The 2023 Issued Standards include all amendments issued up to and including 1 January 2023.
Registration is required to access the free version of the Issued Standards, which do not include additional documents that accompany the full standard (such as illustrative examples, implementation guidance and basis for conclusions).
Summary
A complete set of financial statements includes:
- A statement of financial position (balance sheet) at the end of the period
- A statement of profit or loss and other comprehensive income (income statement) for the period
- A statement of changes in equity for the period
- A statement of cash flows (cash flow statement) for the period
- Notes to the accounts.
The names of the main statements are not mandatory.
IAS 1 Revised also requires a statement of financial position at the start of the earliest comparative period where there has been a retrospective adjustment to the accounts or reclassification of items.
The statement of profit or loss and other comprehensive income, as the name suggests, presents profit and loss for the period as well as other comprehensive income. Other comprehensive income includes income and expenses not recognised in profit or loss such as revaluation surpluses. The statement of profit or loss and other comprehensive income may be presented either as one statement or a separate statement of profit or loss and statement showing other comprehensive income.
The standard provides guidance on the form and content of the financial statements and the underlying accounting concepts. It also requires financial statements to present fairly the position, performance and cash flows of an entity. This is normally achieved by the application of IFRS.
Current proposals
- Categorising items in profit or loss as operating, investing or financing
- Requiring additional profit subtotals
- Distinguishing between integral and non-integral associates and joint ventures
- Removing the choice of how to present cash flows from dividends and interest
- Requiring additional disclosure about unusual items
- Providing disclosure of management performance measures.
Recent amendments
All amendments issued up to and including the publication date of 1 January 2022 are included within the IFRS Foundation’s latest version of the issued standard: 2022 Issued Standard – IAS 1. Issued amendments may, therefore, have a mandatory effective date that is later than 1 January 2022 – see below for details.
Any amendments issued after 1 January 2022 will not be included in the IFRS Foundation’s 2022 Issued Standards but will be listed below and identified as such.
See the Corporate Reporting Faculty’s annual IFRS factsheets for a more detailed discussion of recent IFRS amendments.
- Require an entity to disclose material accounting policy information rather than significant accounting policies.
- Explain that accounting policy information is material if, together with other information in the financial statements, it can reasonably be expected to influence decisions that primary users make.
- Provide examples of material accounting policies.
- Clarify that accounting policy information relating to immaterial transactions need not be disclosed.
For a more detailed discussion of the amendment, read the faculty’s factsheet:
- Add finance income and expenses to the list of components of other comprehensive income;
- Require line items to be presented in the statement of financial position in respect of contracts that are within the scope of IFRS 17;
- Require line items to be presented in the statement of profit or loss in respect of amounts related to contracts within the scope of IFRS 17.
Mandatory date: Annual periods beginning on or after 1 January 2023. Earlier application is permitted. IAS 1 is amended to refer to portfolios of contracts rather than groups of contracts within the scope of IFRS 17.
Mandatory date: Annual periods beginning on or after 1 January 2020. Earlier application is permitted if an entity also applies the amendments to other IFRS Accounting Standards at the same time. IAS 1 is updated to refer to the 2018 Conceptual Framework rather than the Framework for the Preparation and Presentation of Financial Statements when referring to materiality, definitions of elements and their recognition criteria and the objective of financial statements.
Related IFRIC interpretations
- IFRIC 1 Existing Decommissioning, Restoration and Similar Liabilities
Addresses accounting for a change in a provision that is included in the carrying amount of an item of PPE.
- IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
Provides general guidance on how to assess the limit in IAS 19 on the amount of the surplus that can be recognised as an asset. Explains how the pensions asset or liability may be affected when there is a statutory or contractual minimum funding requirement.
- IFRIC 17 Distribution of Non-cash Assets to Owners
Addresses the accounting for dividends of non-cash assets, including those where there is a cash alternative.
- IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
Addresses the accounting by an entity which issues equity instruments in order to settle, in full or part, a financial liability.
- IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
Addresses the accounting treatment of mine waste materials, which are the materials removed by mining entities in order to gain access to mineral ore deposits.
- IFRIC 21 Levies
Provides guidance on when to recognise liability for a levy imposed by a government.
- IFRIC 23 Uncertainty over Income Tax Treatments
Clarifies how to apply the recognition and measurement requirements of IAS 12 when there is uncertainty over income tax treatments.
- SIC 7 Introduction of the Euro
The effective start of the EMU after the reporting date does not alter the requirements of IAS 21 at the reporting date.
- SIC 25 Income Taxes – Changes in the Tax Status of an Enterprise or its Shareholders
Addresses the deferred tax consequences of changes in tax status of an enterprise or its shareholders.
- SIC 29 Disclosure – Service Concession Arrangements
Prescribes disclosures required by a concession operator and concession provider joined by a service concession arrangement.
- SIC 32 Intangible Assets – Website Costs
Addresses accounting for costs associated with the development of a website.
UK reduced disclosures – FRS 101
UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Our FRS 101 page gives more information on which entities qualify and the criteria to be met.
- The statement of financial position must comply with the balance sheet format requirements of the Companies Act.
- The statement of profit or loss and other comprehensive income must comply with the profit and loss account format requirements of the Companies Act.
- Ordinary activities of an entity are defined and extraordinary items are described as highly abnormal material items arising from events falling outside an entity’s ordinary activities.
- It is clarified that items of income or expense are not recognised in profit or loss where such recognition is prohibited by the Companies Act.
- A statement of cash flows for the period;
- A third statement of financial position when a retrospective adjustment or reclassification is made;
- A statement of compliance with IFRS;
- A reconciliation of property, plant and equipment, intangible assets, investment properties, biological assets and the number of shares outstanding at the beginning and end of the comparative period;
- Capital management disclosures (this exemption is not available to a financial institution);
- All remaining IAS 1 disclosures must be applied.
IAS 1 paragraphs for which exemption is available: 10(d), 10(f), 16, 38A-D, 40A-D, 111, 134-6.
ICAEW factsheets and guides
The Corporate Reporting Faculty's annual IFRS factsheets provide a more detailed discussion of recent IFRS amendments.
- Helpsheets and support
- 16 Feb 2024
Aimed at preparers of accounts under IFRS Accounting Standards and FRS 102, this guide looks at reporting requirements relating to the disclosure of key judgements and sources of estimation uncertainty.
- Helpsheets and support
- 08 Aug 2023
- PDF (398kb)
This factsheet highlights new and modified requirements for preparers of IFRS accounts, dealing primarily with new IFRS requirements with mandatory application for annual periods beginning on or after 1 January 2023.
- Helpsheets and support
- 08 Aug 2023
- PDF (415kb)
This factsheet highlights new and modified requirements and includes practical tips on the implications of the changes.
- Helpsheets and support
- 22 Aug 2024
- PDF (470kb)
This factsheet highlights new and modified requirements for preparers of IFRS accounts, dealing primarily with IFRS Accounting Standards with mandatory application for annual periods beginning on or after 1 January 2024.
ICAEW articles
The IASB’s latest IFRS Accounting Standard, IFRS 18 Presentation and Disclosure in Financial Statements, focuses on new requirements for the statement of profit or loss.
Amendments to IAS 1 Presentation of Financial Statements have been issued to clarify that the classification of liabilities as current or non-current should be based on rights that exist at the end of the reporting period.
Highlighting different perspectives on the IASB's Exposure Draft, starting with ICAEW's views.
Exploring the key proposals for a new accounting standard to govern the structure of financial statements.
eBooks
The ICAEW Library & Information Service provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.
- eBook chapter
- 2023
- PKF International Ltd
- Wiley Interpretation and Application of IFRS Standards
Updated edition providing a detailed reference guide with practical examples, and IFRIC interpretations and directions. This chapter discusses IAS 1.
- eBook chapter
- 2021
- Ernst & Young LLP
- International GAAP - Generally Accepted Accounting Practice under International Financial Reporting Standards
A global perspective on technical accounting issues with worked examples and illustrations from published financial reports of major listed companies from around the world. This chapter discusses IAS 1 and IAS 8.
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Other resources
Overviews of each international accounting standard, with a history and timeline of key events and amendments.
Detailed guide on interpreting and implementing IFRS, with illustrative examples and extracts from financial statements. The manual is available online (free registration required) as part of EY Atlas Client Edition.
