I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

 

347 

 

Study Guide 

Intellectual level 

 

 

3 Disclosure 

notes 

 

 

 

(a)  Explain the purpose of disclosure notes. 

K 

 

 

(b)  Draft the following disclosure notes: 

(i)  Non-current assets including tangible and intangible 

assets 

(ii) Provisions 

(iii)  Events after the reporting period 

(iv) Inventory 

S 

 

 

 

 

 

 

1

   IAS 1 Presentation of financial statements 

IAS 1 lists the required contents of a company's financial statements. It also gives guidance on how items 

should be presented in the financial statements.  

A complete set of financial statements includes a statement of financial position, a statement of profit or 

loss and other comprehensive income, a statement of changes in equity, a statement of cash flows and 

disclosure notes.  

As well as covering accounting policies and other general considerations governing financial statements, 

IAS 1 Presentation of financial statements gives substantial guidance on the form and content of 

published financial statements.  

A complete set of financial statements includes the following. 

 

Statement of financial position 

 

Statement of profit or loss and other comprehensive income (either as a single statement or as 

two separate statements: the statement of profit or loss and the statement of other comprehensive 

income) 

 

Statement of changes in equity 

 

Statement of cash flows 

 

Notes, including a summary of significant accounting policies and other explanatory information 

 

(IAS 1, para. 10) 

IAS 1 gives guidance on the format and content of all of these, apart from the statement of cash flows, 

which is covered by IAS 7. We will consider each of these in turn in this chapter. First of all, though, 

some general points are made about financial statements. 

1.1 How items are disclosed 

IAS 1 specifies disclosures of certain items in certain ways. 

 

Some items must appear on the face of the statement of financial position or statement of profit 

or loss. 

 

Other items can appear in a note to the financial statements instead. 

 

Recommended formats are given which entities may or may not follow, depending on their 

circumstances. 

Obviously, disclosures specified by other standards must also be made. Disclosures in both IAS 1 and 

other standards must be made either on the face of the statement or in the notes unless otherwise 

stated, ie disclosures cannot be made in an accompanying commentary or report. 

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