Final answer:
The incorrect statement is that presenting a profit or loss statement without other comprehensive income is allowed. PAS 1 requires profit or loss and other comprehensive income to be presented either in one combined statement or in two consecutive statements, but not in the notes alone.
Step-by-step explanation:
The Presentation of Financial Statements is governed by IAS 1, and it provides guidelines for the presentation of general-purpose financial statements to ensure comparability with an entity's financial statements of previous periods, as well as with the financial statements of other entities.
The statement that is incorrect regarding the provisions of PAS 1 is: 'Presenting an income statement or statement of profit or loss alone without a statement of other comprehensive income is allowed.' According to IAS 1, an entity is required to present all items of income and expense recognized in a period either in a single statement of profit or loss and other comprehensive income or in two statements comprising a separate income statement (or statement of profit or loss) followed by a statement of other comprehensive income.
An entity has the option to present profit or loss and other comprehensive income in two separate statements. However, presenting comprehensive income as a note disclosure only is indeed prohibited. Each of these components must be presented either in the financial statements themselves or in the notes, but they cannot be omitted entirely.