Summary Presentation Of Financial Statements

 SUMMARY PRESENTATION OF FINANCIAL  STATEMENTS

INTERNATIONAL ACCOUNTING

Name : Angga Ari Puspita

NPM : 20211847

Class : 4EB!7

ECONOMY FACULTY

GUNADARMA UNIVERSITY

Subject	- IAS 1 IAS 1 is defeloped for profit –oriented entities . Entities with not-for-profit activities  or public sector  entities may apply this standarv , profided  that appropriate adjustment are  made to particular line item s in the financial ststements. Entities whose share capital is not classified as equity (such as mutual fund)nmay also apli IAS 1 provided the member’s interest is appropriately disclosed. - Financial Statements Financial statements are a central feature of financial reporting – a principal means through which  an entity communicates its financial information to those outside it.
Object	- Assets - Liabilities - Equity - Income and expenses, including  gains and losses - Constributions by and distribution to owner in their capacity as owners ; and - Cash flows
Presentation	-Fair Presentaation and Commpliance with IFRS In accordance with IFRS, financial statements should presest fairly the financial position, financial performance and cash flows of an entity .As stated in IAS 1 ,the application of IFRS , with additional disclosure when necessary , should result in financial statements achieving fair presentation.However, in extremely rare circum satances where management concludes thant compliance with a requirements in an IFRS  would be so mis leading that it would conflict with objective of financial statements as set out in the framework requires, or otherwise  does not prohibit , such a departure and the entity discloses all of the following : 1.      Management has concluded that the financial statements  present fairly the entity’s financial position, financial performance and cash flow. 2.      The entity has complied with all applicable IFRS,expect that it has departed from a particular requirement to achieve a fair presentation. 3.      The title of the IFRS from which the entity has departed, the nature of the departure , including the treatment that the IFRS would require , the reason why that that treatment wuold so misleading in the circumstances that it would conflict with the objective of financial statements set out in the framework , and the treatment adopted. 4.      For each period presented, the financial effect of the departure on each item in the financial statements that would have been reported in complying with the requirement. The entity is required to reduce the perceived misleading aspects of compliance by disclosing all of the following : 1.      The title of the IFRS in question, kthe nature of the requirement, and the reason why management has concluded that complying with that the requirement is so misleading in the circumstances that it conflicts with the objective of financial statements as set out in the framework . 2.      For each period presented, the adjustments to each item in the financial statements that management has concluded would would be necessary to achieve a fair presentation. When assessing whether  complying with a specific requirement in an IFRS would be so misleading that it would conflict with the objective of financial statements as set out in the Frame work, management should  consider the following ; 1.      Why the objective of financial ststements is not achieved in the particular circumstances. 2.      How the entity’s circumstances differ from those of other entities that comply with the requirement.
Measurement	The policy note should begin with a clear statements on the nature of the comprehensive basis of accounting used. Financial  statement should include clear and disclosure af all significant accounting policies that have been used in the preparation of those financial statements .IAs 1 requis an entity to disclose in the summary of significant accounting policies : 1.      The measurement basis (or bases)used in preparing the financial statements 2.      The other accounting policies applied that are relevant to an understanding of the financial ststements. Measurement bases may include historical cost , current cost , net realizable value , fair value or recoverable amount. Othe accounting policies should be disclosed if they could assist users in understanding how transaction , other event , and conditions are reported in the financial ststements.
Recognition	In term of recognition associated  with the financial ststement ,is based on accrual basis of accounting. Under the accrual basis of accoullnting , an entity recognizes the element of the financial statements  ( items such as assets,liabilities,income and expenses) when they meet the definition and recognition crfiteria for those element in the framework. Consequently, transaction and presented in the financial ststements in the periods when they occur (and not when cash is received or paid).