Financial statements shall present fairly the financial position, financial performance and cash flows of an undertaking.
Fair presentation requires the faithful representation of the impacts of transactions, in accordance with the definitions (and recognition criteria) for assets, liabilities, income and expenses set out in the Framework (see Framework workbook).
The application of IFRSs (with additional disclosure when necessary) is presumed to result in financial statements that achieve a fair presentation.
Financial statements that comply with IFRSs shall make an explicit and unreserved statement of such compliance in the notes. Financial statements shall not be described as complying with IFRSs, unless they comply with all the requirements of IFRSs.
A fair presentation also requires an undertaking:
(i) to select and apply accounting policies in accordance with IAS 8 Accounting Policies. IAS 8 sets out a hierarchy of guidance that management considers (in the absence of a Standard) that specifically applies to an item.
(ii) to present information, including policies, in a manner that provides relevant, reliable, comparable and understandable information.
(iii) to provide additional disclosures, when compliance with the specific requirements in IFRSs is insufficient to enable users to understand the impact of particular transactions, on the undertaking’s financial position, and performance.
No comments:
Post a Comment