IAS1 INTERNATIONAL ACCOUNTING STANDARD Presentation of Financial Statement under IFRS REGIME

PRESENTED BY; SHUAIB ADEADEBAYO

HND,BSC,ACA,CFE,ACCA….

04/08/23 1Presentation of financial

statement([email protected])

QUALITATIVE CHARACTERISTIC OF FINANCIAL STATEMENT

COMPONENT OF FINANCIAL STATEMENT ELEMENT OF FINANCIAL STATEMENT RECOGNITION OF ELEMENT OF FINANCIAL

STATEMENT DESCRIPTION OF FINANCIAL STATEMENT PERIOD OF FINANCIAL STATEMENT APPROVAL OF FINANCIAL STATEMENT DISCLOSURE OF ITEMS IN FINANCIAL

STATEMENT SPECIMEN OF FINANCIAL STATEMENT UNDER

IFRS SUMMARY



ASSETS. Are resources presently control by an entity in which an inflow of economic benefit are expected

Asset can only be recognized if; It can be measured reliable It can be demonstrated that there will

be an inflow of economic benefits an entity presently control the asset It can be demonstrated that the asset

will be used to generate economic benefit, or used to accelerate generation of economic benefit



LIABILITIES. Are present obligation due to an organization in which an outflow of economic benefit are expected.

Liability can only be recognized if; contractual & legal obligation exist it can be demonstrated there will be an

outflow of economic benefit It can be measured reliable



INCOME; Are gross inflow of economic benefit during an accounting year end.

Income can only be recognized if; There will be an inflow of economic

benefit from operating activities for the period

There is increase in asset There is decrease in liabilities



EXPENSES; Are gross outflow of economic benefit during an accounting year end.

Expenses can only be recognized if ; It can be demonstrated that there will

be an outflow of economic benefit from the operating activities for the year end

There is increased in liabilities There is decreased in asset



IAS 1 states that an entity must approved there financial statements for the users of financial statement to make a timely and effective economic decision on or before six (6months) after their reporting date (year end)



IAS 1 states that an entity must disclosed in the notes to the account all material items in the financial statements to aid users understanding and decision making



ADEADEBAYO NIGERIA PLC STATEMENT OF FINANCIAL POSITION as at 31 DECEMBER, 2011 #’000 #’000AssetsNon-current assetsProperty, plant and equipment ******Investments at fair ******Goodwill ******Developmental cost ******Patent right & others ******TOTAL NON CURRENT ASSET

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Presentation of financial statement([email protected])

CURRENT ASSET #’000 #’000Inventory ******Trade Receivables ******Bank ******Cash ******Bill of exchange receivable ******Government Grant receivable ******Loan Advanced receivable ******Prepayments ******

TOTAL CURRENT ASSET ******TOTAL ASSET ******



EQUITY & LIABILITIES #’000 #’000EQUITYOrdinary share ******Share premium ******Retain earnings ******Revaluation reserve ******General reserve ******Share option *******TOTAL EQUITY ******



LIABILITIES #’000 #’000NON CURRENT LIABILITIESPreference share ******Debenture ******Long term liabilities ******Deferred income ******Contingent liabilities ******Deferred tax liabilities ******Leased obligations ******TOTAL NON CURRENT LIABILITIES

******



CURRENT LIABILITIES #’000 #’000Trade payable ******Bank overdraft ******Tax payable ******Accrual ******Short time loan ******TOTAL CURRENT LIABILITIES ******TOTAL EQUITY & LIABILITIES ******



ADEADEBAYO NIGERIA PLC SOPOLAOCI FOR THE YEAR ENDED 31 DEC 2011 #’000 Revenue ******* Cost of sales (w (i)) (*******) –––––––– Gross profit ******* Distribution costs (*******) Administrative expenses (*******) –––––––– Operating Income *******

Investment income ******* Gain on fair value of investments *******

Finance costs (*******) –––––––– Profit before tax ******* Income tax expense (*******) –––––––– Profit for the period ******* ––––––––



OTHER COMPREHENSIVE INCOME; #000Gain/loss on foreign exchange ******Revaluation surplus ******F/V increase in NCA available 4sales ******Gain/loss on employee benefit ******Total other comprehensive income ******Total comprehensive income ******

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statement([email protected]) 20

ADEADEBAYO NIGERIA PLC STATEMENT OF CHANGE IN EQUITY as at 31 December 2011 O/S S/P R/E R/R G/R TOTAL # # # # # #Bal b/d *** *** *** *** ***

****Prior yr adj - - *** - - ****MovementProfit for the yr - *** - - ****Bal b/d *** *** *** *** ***

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IAS 7 governs cash flow statement. It allow two method of presentation

1.Direct Method2. Indirect Method



ADEADEBAYO NIGERIA PLC STATEMENT OF CASH FLOW AS AT 3I DEC 2011INDIRECT METHOD

#’000OPERATING ACTIVITIESProfit b/4 tax ******Add/lee non cash items; Depreciation ******Amortization ******Profit/loss on disposal of pp ******Provisions ******Finance cost ******



#’000Movement in working capital;Increase/decrease in inventory ******Increase/decrease in Receivable ******Increase/decrease in Payable ******Increase/decrease in lease ******Cash generated from operation

*******Less finance cost paid (*****)Cash generated b/4 tax *******Tax paid (******)Net operating cash flow

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INVESTING ACTIVITIES #’000Purchase of PPE (*****)

Disposal proceed from PPE ******Developmental cost (*****)Investment cost (*****)Dividend received from investment ******Investment income ******Net investing Activities ******



FINANCING ACTIVITIES; #’000

Ordinary shares issued ******Loan note redeemed (*****)Preference shares issued ******Dividend paid (*****)Net financing Activities *******Cash balance b/d 1/1/2011 *******Net cash flow for the year *******Cash balance b/d 31/12/2011 *******



NOTE; Under direct method or indirect method the presentation for INVESTING ACTIVITIES and FINANCING ACTIVITIES remain the same except for operating activities.



$000Cash generated from customer xxxxxCash paid to supplier (xxxx)Cash paid to employee (xxxx) _____Net cash flow from operation xxxxFinance cost paid (xxxx)Net cash flow b/4 Tax xxxxTax paid (xxxx)Net operating cash flow xxxx



IAS1 INTERNATIONAL ACCOUNTING STANDARD Presentation of Financial Statement under IFRS REGIME

Economy & Finance

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