IASB documents published to accompany International

66 Pages·2013·0.23 MB·English

IAS1
IASB documents published to accompany
International Accounting Standard 1
Presentation of Financial Statements
ThetextoftheunaccompaniedIAS1iscontainedinPartAofthisedition. Itseffectivedate
when issued was 1 January 2009. The effective date of the most recent amendment is
1January2013. Thispartpresentsthefollowingaccompanyingdocuments:
APPROVALBYTHEBOARDOFIAS1ISSUEDINSEPTEMBER2007
APPROVALBYTHEBOARDOFAMENDMENTSTOIAS1:
PuttableFinancialInstrumentsandObligationsArisingonLiquidation
(AmendmentstoIAS32andIAS1)issuedinFebruary2008
PresentationofItemsofOtherComprehensiveIncome(Amendmentsto
IAS1)issuedinJune2011
BASISFORCONCLUSIONS
APPENDIX
AmendmentstotheBasisforConclusionsonotherIFRSs
DISSENTINGOPINIONS
IMPLEMENTATIONGUIDANCE
APPENDIX
AmendmentstoguidanceonotherIFRSs
TABLEOFCONCORDANCE
(cid:1)IFRSFoundation B1041
IAS1
Approval by the Board of IAS 1 issued in September 2007
International Accounting Standard 1 Presentation of Financial Statements (as revised in 2007)
was approved for issue by ten of the fourteen members of the International Accounting
StandardsBoard. ProfessorBarthandMessrsCope,GarnettandLeisenringdissented. Their
dissentingopinionsaresetoutaftertheBasisforConclusions.
SirDavidTweedie Chairman
ThomasEJones Vice-Chairman
MaryEBarth
Hans-GeorgBruns
AnthonyTCope
PhilippeDanjou
JanEngström
RobertPGarnett
GilbertGélard
JamesJLeisenring
WarrenJMcGregor
PatriciaLO’Malley
JohnTSmith
TatsumiYamada
B1042 (cid:1)IFRSFoundation
IAS1
Approval by the Board of Puttable Financial Instruments
and Obligations Arising on Liquidation (Amendments to
IAS 32 and IAS 1) issued in February 2008
Puttable Financial Instruments and Obligations Arising on Liquidation (Amendments to IAS 32
FinancialInstruments:PresentationandIAS1PresentationofFinancialStatements)wasapprovedfor
issuebyelevenofthethirteenmembersoftheInternationalAccountingStandardsBoard.
Professor Barth and Mr Garnett dissented. Their dissenting opinions are set out after the
BasisforConclusionsonIAS32.
SirDavidTweedie Chairman
ThomasEJones Vice-Chairman
MaryEBarth
StephenCooper
PhilippeDanjou
JanEngström
RobertPGarnett
GilbertGélard
JamesJLeisenring
WarrenJMcGregor
JohnTSmith
TatsumiYamada
Wei-GuoZhang
(cid:1)IFRSFoundation B1043
IAS1
Approval by the Board of Presentation of Items of Other
Comprehensive Income issued in June 2011
Presentation of Items of Other Comprehensive Income (Amendments to IAS 1) was approved for
issuebyfourteenofthefifteenmembersoftheInternationalAccountingStandardsBoard.
Mr Pacter dissented from the issue of the amendments. His dissenting opinion is set out
aftertheBasisforConclusions.
SirDavidTweedie Chairman
StephenCooper
PhilippeDanjou
JanEngström
PatrickFinnegan
AmaroLuizdeOliveiraGomes
PrabhakarKalavacherla
ElkeKönig
PatriciaMcConnell
WarrenJMcGregor
PaulPacter
DarrelScott
JohnTSmith
TatsumiYamada
Wei-GuoZhang
B1044 (cid:1)IFRSFoundation
IAS1BC
CONTENTS
fromparagraph
BASIS FOR CONCLUSIONS ON
IAS 1 PRESENTATION OF FINANCIAL STATEMENTS
INTRODUCTION BC1
TheImprovementsproject—revisionofIAS1(2003) BC2
AmendmenttoIAS1—CapitalDisclosures(2005) BC5
AmendmentstoIAS32andIAS1—PuttableFinancialInstrumentsand
ObligationsArisingonLiquidation(2008) BC6A
PresentationofItemsofOtherComprehensiveIncome(Amendmentsto
IAS1) BC6B
Financialstatementpresentation—Jointproject BC7
DEFINITIONS BC11
Generalpurposefinancialstatements BC11
FINANCIALSTATEMENTS BC14
Completesetoffinancialstatements BC14
Titlesoffinancialstatements BC14
Equalprominence BC22
DeparturesfromIFRSs BC23
Comparativeinformation BC31
Astatementoffinancialpositionasatthebeginningoftheearliestcomparative
period BC31
Clarificationofrequirementsforcomparativeinformation BC32A
IAS34InterimFinancialReporting BC33
Criterionforexemptionfromrequirements BC34
Reportingownerandnon-ownerchangesinequity BC37
STATEMENTOFFINANCIALPOSITION BC38A
Currentassetsandcurrentliabilities BC38A
Classificationoftheliabilitycomponentofaconvertibleinstrument BC38E
Effectofeventsafterthereportingperiodontheclassificationofliabilities BC39
STATEMENTOFCOMPREHENSIVEINCOME BC49
Reportingcomprehensiveincome BC49
Resultsofoperatingactivities BC55
Subtotalforprofitorloss BC57
Minorityinterest BC59
Extraordinaryitems BC60
Othercomprehensiveincome—relatedtaxeffects BC65
Reclassificationadjustments BC69
STATEMENTOFCHANGESINEQUITY BC74
Effectsofretrospectiveapplicationorretrospectiverestatement BC74
Reconciliationforeachcomponentofothercomprehensiveincome BC74A
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Presentationofdividends BC75
STATEMENTOFCASHFLOWS BC76
IAS7CashFlowStatements BC76
NOTES BC77
Disclosureofthejudgementsthatmanagementhasmadeintheprocessof
applyingtheentity’saccountingpolicies BC77
Disclosureofmajorsourcesofestimationuncertainty BC79
Disclosuresaboutcapital BC85
Objectives,policiesandprocessesformanagingcapital BC90
Externallyimposedcapitalrequirements BC92
Internalcapitaltargets BC98
Puttablefinancialinstrumentsandobligationsarisingonliquidation BC100A
Presentationofmeasurespershare BC101
TRANSITIONANDEFFECTIVEDATE BC105
DIFFERENCESFROMSFAS130 BC106
APPENDIX
AmendmentstotheBasisforConclusionsonotherIFRSs
DISSENTINGOPINIONS
GUIDANCEONIMPLEMENTING
IAS1PRESENTATIONOFFINANCIALSTATEMENTS
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Basis for Conclusions on
IAS 1 Presentation of Financial Statements
ThisBasisforConclusionsaccompanies,butisnotpartof,IAS1.
The International Accounting Standards Board revised IAS 1 Presentation of Financial
Statements in 2007 as part of its project on financial statement presentation. It was not the
Board’sintentiontoreconsideraspartofthatprojectalltherequirementsinIAS1.
Forconvenience,theBoardhasincorporatedintothisBasisforConclusionsrelevantmaterialfrom
theBasisforConclusionsontherevisionofIAS1in2003anditsamendmentin2005. Paragraphs
havebeenrenumberedandreorganisedasnecessarytoreflectthenewstructureoftheStandard.
Introduction
BC1 The International Accounting Standards Committee (IASC) issued the first
versionofIAS1DisclosureofAccountingPoliciesin1975. Itwasreformattedin1994
andsupersededin1997byIAS1PresentationofFinancialStatements.1In2003the
International Accounting Standards Board revised IAS 1 as part of the
Improvements project and in 2005 the Board amended it as a consequence of
issuing IFRS 7 Financial Instruments: Disclosures. In 2007 the Board revised IAS 1
again as part of its project on financial statement presentation. This Basis for
ConclusionssummarisestheBoard’sconsiderationsinreachingitsconclusions
on revising IAS 1 in 2003, on amending it in 2005 and revising it in 2007. It
includesreasonsforacceptingsomeapproachesandrejectingothers. Individual
Boardmembersgavegreaterweighttosomefactorsthantoothers.
The Improvements project—revision of IAS 1 (2003)
BC2 InJuly2001theBoardannouncedthat,aspartofitsinitialagendaoftechnical
projects, it would undertake a project to improve a number of standards,
including IAS 1. The project was undertaken in the light of queries and
criticisms raised in relation to the standards by securities regulators,
professional accountants and other interested parties. The objectives of the
Improvements project were to reduce or eliminate alternatives, redundancies
and conflicts within standards, to deal with some convergence issues and to
make other improvements. The Board’s intention was not to reconsider the
fundamental approach to the presentation of financial statements established
byIAS1in1997.
BC3 InMay2002theBoardpublishedanexposuredraftofproposedImprovementsto
InternationalAccountingStandards,whichcontainedproposalstoreviseIAS1. The
Boardreceivedmorethan160commentletters. Afterconsideringtheresponses
theBoardissuedin2003arevisedversionofIAS1. InitsrevisiontheBoard’s
mainobjectiveswere:
(a) toprovideaframeworkwithinwhichanentityassesseshowtopresent
fairlytheeffectsoftransactionsandotherevents,andassesseswhether
the result of complying with a requirement in an IFRS would be so
misleadingthatitwouldnotgiveafairpresentation;
1 IASCdidnotpublishaBasisforConclusions.
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(b) to base the criteria for classifying liabilities as current or non-current
solelyontheconditionsexistingatthebalancesheetdate;
(c) to prohibit the presentation of items of income and expense as
‘extraordinaryitems’;
(d) tospecifydisclosuresaboutthejudgementsthatmanagementhasmade
in the process of applying the entity’s accounting policies, apart from
thoseinvolvingestimations,andthathavethemostsignificanteffecton
theamountsrecognisedinthefinancialstatements;and
(e) to specify disclosures about sources of estimation uncertainty at the
balance sheet date that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the
nextfinancialyear.
BC4 The following sections summarise the Board’s considerations in reaching its
conclusionsaspartofitsImprovementsprojectin2003:
(a) departuresfromIFRSs(paragraphsBC23–BC30)
(b) criterionforexemptionfromrequirements(paragraphsBC34–BC36)
(c) effect of events after the reporting period on the classification of
liabilities(paragraphsBC39–BC48)
(d) resultsofoperatingactivities(paragraphsBC55andBC56)
(e) minorityinterest(paragraphBC59)2
(f) extraordinaryitems(paragraphsBC60–BC64)
(g) disclosure of the judgements management has made in the process of
applyingtheentity’saccountingpolicies(paragraphsBC77andBC78)
(h) disclosure of major sources of estimation uncertainty (paragraphs
BC79–BC84).
Amendment to IAS 1—Capital Disclosures (2005)
BC5 InAugust2005theBoardissuedanAmendmenttoIAS1—CapitalDisclosures. The
amendmentaddedtoIAS1requirementsfordisclosureof:
(a) theentity’sobjectives,policiesandprocessesformanagingcapital.
(b) quantitativedataaboutwhattheentityregardsascapital.
(c) whethertheentityhascompliedwithanycapitalrequirements;andifit
hasnotcomplied,theconsequencesofsuchnon-compliance.
BC6 The following sections summarise the Board’s considerations in reaching its
conclusionsaspartofitsamendmenttoIAS1in2005:
(a) disclosuresaboutcapital(paragraphsBC85–BC89)
2 In January 2008 the IASB issued an amended IAS 27 Consolidated and Separate Financial Statements,
whichamended‘minorityinterest’to‘non-controllinginterests’. Theconsolidationrequirements
inIAS27weresupersededbyIFRS10ConsolidatedFinancialStatementsissuedinMay2011. Theterm
‘non-controllinginterests’andtherequirementsfornon-controllinginterestswerenotchanged.
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(b) objectives,policiesandprocessesformanagingcapital(paragraphsBC90
andBC91)
(c) externallyimposedcapitalrequirements(paragraphsBC92–BC97)
(d) internalcapitaltargets(paragraphsBC98–BC100).
Amendments to IAS 32 and IAS 1—Puttable Financial
Instruments and Obligations Arising on Liquidation
(2008)
BC6A InJuly2006theBoardpublishedanexposuredraftofproposedamendmentsto
IAS 32 and IAS 1 relating to the classification of puttable instruments and
instruments with obligations arising only on liquidation. The Board
subsequently confirmed the proposals and in February 2008 issued an
amendmentthatnowformspartofIAS1.
Presentation of Items of Other Comprehensive Income
(Amendments to IAS 1)
BC6B InMay2010theBoardpublishedanexposuredraftofproposedamendmentsto
IAS1relatingtothepresentationofitemsofothercomprehensiveincome(OCI).
TheBoardsubsequentlymodifiedandconfirmedtheproposalsandinJune2011
issued Presentation of Items of Other Comprehensive Income (Amendments to IAS 1).
The amendments were developed in a joint project with the US national
standard-setter,theFinancialAccountingStandardsBoard(FASB),withtheaim
ofaligningthepresentationofOCIsothatinformationinfinancialstatements
prepared by entities using IFRSs and entities using US generally accepted
accountingprinciples(GAAP)canbemoreeasilycompared.
Financial statement presentation—Joint project
BC7 In September 2001 the Board added to its agenda the performance reporting
project(inMarch2006renamedthe‘financialstatementpresentationproject’).
The objective of the project was to enhance the usefulness of information
presentedintheincomestatement. TheBoarddevelopedapossiblenewmodel
for reporting income and expenses and conducted preliminary testing.
Similarly,intheUnitedStates,theFinancialAccountingStandardsBoard(FASB)
added a project on performance reporting to its agenda in October 2001,
developed its model and conducted preliminary testing. Constituents raised
concernsaboutbothmodelsandaboutthefactthattheyweredifferent.
BC8 In April 2004 the Board and the FASB decided to work on financial statement
presentation as a joint project. They agreed that the project should address
presentationanddisplaynotonlyintheincomestatement,butalsointheother
statements that, together with the income statement, would constitute a
complete set of financial statements—the balance sheet, the statement of
changesinequity,andthecashflowstatement. TheBoarddecidedtoapproach
theprojectintwophases. PhaseAwouldaddressthestatementsthatconstitute
a complete set of financial statements and the periods for which they are
required to be presented. Phase B would be undertaken jointly with the FASB
and would address more fundamental issues relating to presentation and
displayofinformationinthefinancialstatements,including:
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(a) consistent principles for aggregating information in each financial
statement.
(b) the totals and subtotals that should be reported in each financial
statement.
(c) whether components of other comprehensive income should be
reclassified to profit or loss and, if so, the characteristics of the
transactions and events that should be reclassified and when
reclassificationshouldbemade.
(d) whetherthedirectortheindirectmethodofpresentingoperatingcash
flowsprovidesmoreusefulinformation.
BC9 In March 2006, as a result of its work in phase A, the Board published an
exposure draft of proposed amendments to IAS 1—A Revised Presentation. The
Board received more than 130 comment letters. The exposure draft proposed
amendmentsthataffectedthepresentationofownerchangesinequityandthe
presentation of comprehensive income, but did not propose to change the
recognition,measurementordisclosureofspecifictransactionsandotherevents
requiredbyotherIFRSs. ItalsoproposedtobringIAS1largelyintolinewiththe
US standard—SFAS 130 Reporting Comprehensive Income. After considering the
responsestotheexposuredrafttheBoardissuedarevisedversionofIAS1. The
FASBdecidedtoconsiderphasesAandBissuestogether,andthereforedidnot
publishanexposuredraftonphaseA.
BC10 The following sections summarise the Board’s considerations in reaching its
conclusionsaspartofitsrevisionin2007:
(a) generalpurposefinancialstatements(paragraphsBC11–BC13)
(b) titlesoffinancialstatements(paragraphsBC14–BC21)
(c) equalprominence(paragraphBC22)
(d) a statement of financial position as at the beginning of the earliest
comparativeperiod(paragraphsBC31andBC32)
(e) IAS34InterimFinancialReporting(paragraphBC33)
(f) reportingownerandnon-ownerchangesinequity(paragraphsBC37and
BC38)
(g) reportingcomprehensiveincome(paragraphsBC49–BC54)
(h) subtotalforprofitorloss(paragraphsBC57andBC58)
(i) othercomprehensiveincome-relatedtaxeffects(paragraphsBC65–BC68)
(j) reclassificationadjustments(paragraphsBC69–BC73)
(k) effects of retrospective application or retrospective restatement
(paragraphBC74)
(l) presentationofdividends(paragraphBC75)
(m) IAS7CashFlowStatements(paragraphBC76)
(n) presentationofmeasurespershare(paragraphsBC101–BC104)
(o) effectivedateandtransition(paragraphBC105)
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