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Presentation and Disclosure Requirements of Financial Statements – Revision (Contd) Disclosure Requirements – IAS 02 The accounting policy adopted The total carrying amount and the carrying amount in classification appropriate to the enterprise. The carrying amount of the inventories carried at NRV. The amount of any reversal of any write down that is recognized as [...]

Presentation and Disclosure Requirements of Financial Statements – Revision Balance Sheet Disclosure Requirements of Share Capital Share capital classified under the following sub-heads, namely: Issued, subscribed and paid up capital, distinguishing in respect of each class between:- (a) Shares allotted for consideration paid in cash; (b) Shares allotted for consideration other than cash, showing separately [...]

IAS-33 Earnings per Share & Financial Statements Diluted EPS • At the end of an accounting period, a company may have in issue some securities which do not (at present) have any claim to a share of equity earnings, but may give rise to such a claim in the future. These securities include. a) A [...]

IAS-33 Earnings per Share • Earnings Per Share (EPS) is widely used by investors as a measure of a company’s performance and is of particular importance in: a) Comparing the results of a company over a period of time. b) Comparing the performance of one company’s equity against the performance of another company’s equity. Objectives [...]

Events after the Balance Sheet Date IAS-10 • The Objective of this standard is to prescribe: a) When an entity should adjust its financial statements for events after the balance sheet date; and b) The disclosure that an entity should give about the date when the financial statements were authorized for issue and about events [...]

Cash Flow Statement (Contd) If the closing balance is higher than the difference of opening balance and depreciation for the year it means that an addition of fixed assets has taken place. If the closing balance is lower than the difference of the O/B and Depreciation for the Year, it shows a disposal of fixed [...]

Cash Flow Statement (Contd) Illustration 01 In the following example we have provided you with a Balance Sheet with comparative figures and some additional information. All figures including those given in additional information are in thousands of Rupees. Cash flow statement- Explanation We have started with profit before tax that was provided in the additional [...]

Cash Flow Statement IAS-7 Cash Flow Statement Cash Flow Statement: 1. Cash flow statement shows the movement in cash resources of the business. 2. This statement shows the sources from which business generated cash and its application. • For any business it is important to ensure that: 1. Sufficient profits are made to compensate owners [...]

Changes in Accounting Policies – IAS 8, Errors and Cash Flows In the last lecture we started our discussion on IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors. Following portion of the IAS was covered in the last lecture: a. Selection and application of accounting policies b. Consistent application of accounting policies c. [...]

Statement of Changes in Equity, Accounting Policies, Changes in Accounting Estimates and Errors Statement of Changes in Equity – IAS 1 1. Statement of changes in equity shows the movement in the elements of equity during the reporting period. 2. An entity shall present a statement of changes in equity showing on the face of [...]