Question

Financial Statements prepared under IFRS Standards collectively comprise the following:

And what sets out the form and content of these?
a.A statement of financial position (balance sheet), as at the end of the reporting period
b.A statement of profit or loss and other comprehensive income, which can be in a two-part format including a separate statement of profit or loss (income statement, or profit and loss account),
c.A statement of changes in equity, for the reporting period
d.A statement of cash flows, for the reporting period
Notes, comprising a summary of significant accounting policies and other explanatory information
(And sometimes) A revised statement of financial position from an earlier period
Form and content of the above set by IAS 1, Presentation of Financial Statements

Answer 1

Financial statements under IFRS Standards include several components, such as a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity, and a statement of cash flows. The presentation of these statements is governed by IAS 1. Using a bank's balance sheet as an example, it shows the net worth as the difference between assets and liabilities.

Step-by-step explanation:

The financial statements prepared under IFRS Standards include:

• A statement of financial position (balance sheet), as at the end of the reporting period.
• A statement of profit or loss and other comprehensive income, which can be presented either as a single statement or in a two-part format including a separate statement of profit or loss.
• A statement of changes in equity for the reporting period.
• A statement of cash flows for the reporting period.
• Notes, consisting of a summary of significant accounting policies and other explanatory information.
• Sometimes, a revised statement of financial position from an earlier period is also presented.

The form and content of these financial statements are set by IAS 1, Presentation of Financial Statements. Taking the example of a bank's balance sheet, it lists assets such as cash held in its vaults and monies held at the Federal Reserve bank, and liabilities such as the mortgages it has issued. The difference between the bank's assets and liabilities is known as the bank's net worth or bank capital.