The objective of IAS No. 1 is to prescribe the basis for the presentation of general-purpose financial statements, to ensure comparability both with the company's financial statements of previous periods and with the financial statements of other entities. To achieve this objective, this Standard sets out overall requirements for the presentation of financial statements, guidelines for their structure, and minimum requirements for their content.
Components of Financial Statements
A complete set of financial statements comprises:
Fundamental Principles Underlying the Preparation of Financial Statements
A company whose financial statements comply with IFRS shall make an explicit and unreserved statement of such compliance in the notes. Financial statements shall not be described as complying with IFRS unless they comply with all the requirements of IFRS.
|fenix: "Only if a presentation based on liquidity provides information that is reliable and more relevant may the current/non-current split be omitted" - I do not fully understand this - isn't the current/non-current presentation the liquidity presentation? May be smth else was meant by this phrase?|
|mdlofmn: My understanding is that unless another more efficient/reliable/consistant method is available you may not omit the Non current/current categories.|
|ascruggs92: Think of it this way - Assets are organized on a balance sheet in order of liquidity. However, that distinction is only needed so users can accurately judge the company's financial position. If a company actually had to be liquidated for any reason, it doesn't matter how liquid the assets are, they are all being sold, and which point there will be no company|
|Usus95: @fenix @mdlofmn is saying it correctly-the CA non-CA way is the best way to do it, but if there was another way that the company finds better in presenting liquidity (which I dont think really exists), then they should go for that. @ascruggs92-keep in mind the FI statements should always use the going concern principle, irrespective of liquidation|