Presentation of Financial Statements

1 AASB Standard AASB 101 July 2015 Presentation of Financial Statements Federal Register of Legislative Instruments F2015L01626 AASB 101 2 COPYRIGHT Obtaining a copy of this Accounting Standard This Standard is available on the AASB website: Australian Accounting Standards Board PO Box 204 Collins Street West Victoria 8007 AUSTRALIA Phone: (03) 9617 7637 E-mail: Website: Other enquiries Phone: (03) 9617 7600 E-mail: COPYRIGHT Commonwealth of Australia 2015 This AASB Standard contains IFRS Foundation copyright material. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use subject to the inclusion of an acknowledgment of the source.

2 Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to The Director of Finance and Administration, Australian Accounting Standards Board, PO Box 204, Collins Street West, Victoria 8007. All existing rights in this material are reserved outside Australia. Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use only. Further information and requests for authorisation to reproduce for commercial purposes outside Australia should be addressed to the IFRS Foundation at ISSN 1036-4803 Federal Register of Legislative Instruments F2015L01626 AASB 101 3 CONTENTS Contents COMPARISON WITH IAS 1 ACCOUNTING STANDARD AASB 101 Presentation OF Financial Statements from paragraph OBJECTIVE 1 SCOPE 2 DEFINITIONS 7 Financial Statements Purpose of Financial Statements 9 Complete set of Financial Statements 10 General features Fair Presentation and compliance with Standards 15 Going concern 25 Accrual basis of accounting 27 Materiality and aggregation 29 Offsetting 32 Frequency of reporting 36 Comparative information Minimum

3 Comparative information 38 Additional comparative information 38C Change in accounting policy, retrospective restatement or reclassification 40A Consistency of Presentation 45 STRUCTURE AND CONTENT Introduction 47 Identification of the Financial Statements 49 Statement of Financial position Information to be presented in the statement of Financial position 54 Current/non-current distinction 60 Current assets 66 Current liabilities 69 Information to be presented either in the statement of Financial position or in the notes 77 Statement of profit or loss and other comprehensive income 81 Information to be presented in the profit or loss section or the statement of profit or loss 82 Information to be presented in the other comprehensive income section 82A Profit or loss for the period 88 Other comprehensive

4 Income for the period 90 Information to be presented in the statement(s) of profit or loss and other comprehensive income or in the notes 97 Statement of changes in equity Information to be presented in the statement of changes in equity 106 Information to be presented in the statement of changes in equity or in the notes 106A Statement of cash flows 111 Notes Structure 112 Disclosure of accounting policies 117 Federal Register of Legislative Instruments F2015L01626 AASB 101 4 CONTENTS Sources of estimation uncertainty 125 Capital 134 Puttable Financial instruments classified as equity 136A Other disclosures 137 transition AND EFFECTIVE DATE 139 WITHDRAWAL OF IAS 1 (REVISED 2003) 140 COMMENCEMENT OF THE LEGISLATIVE INSTRUMENT WITHDRAWAL OF AASB PRONOUNCEMENTS APPENDICES A Australian defined terms B Australian reduced disclosure requirements DELETED IAS 1 TEXT AVAILABLE ON THE AASB WEBSITE Implementation guidance on IAS 1 Basis for Conclusions on IAS 1 Australian Accounting Standard AASB 101 Presentation of Financial Statements is set out in paragraphs 1 and Appendices A B.

5 All the paragraphs have equal authority. Paragraphs in bold type state the main principles. AASB 101 is to be read in the context of other Australian Accounting Standards, including AASB 1048 Interpretation of Standards, which identifies the Australian Accounting Interpretations, and AASB 1057 Application of Australian Accounting Standards. In the absence of explicit guidance, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies. Federal Register of Legislative Instruments F2015L01626 AASB 101 5 COMPARISON Comparison with IAS 1 AASB 101 Presentation of Financial Statements incorporates IAS 1 Presentation of Financial Statements issued by the International Accounting Standards Board (IASB).

6 Australian-specific paragraphs (which are not included in IAS 1) are identified with the prefix Aus or RDR . Paragraphs that apply only to not-for-profit entities begin by identifying their limited applicability. Tier 1 For-profit entities complying with AASB 101 also comply with IAS 1. Not-for-profit entities compliance with IAS 1 will depend on whether any Aus paragraphs that specifically apply to not-for-profit entities provide additional guidance or contain applicable requirements that are inconsistent with IAS 1. Tier 2 Entities preparing general purpose Financial Statements under Australian Accounting Standards Reduced Disclosure Requirements (Tier 2) will not be in compliance with IFRSs. AASB 1053 Application of Tiers of Australian Accounting Standards explains the two tiers of reporting requirements.

7 Federal Register of Legislative Instruments F2015L01626 AASB 101 6 STANDARD Accounting Standard AASB 101 The Australian Accounting Standards Board makes Accounting Standard AASB 101 Presentation of Financial Statements under section 334 of the Corporations Act 2001. Kris Peach Dated 24 July 2015 Chair AASB Accounting Standard AASB 101 Presentation of Financial Statements Objective 1 This Standard prescribes the basis for Presentation of general purpose Financial Statements to ensure comparability both with the entity s Financial Statements of previous periods and with the Financial Statements of other entities. It sets out overall requirements for the Presentation of Financial Statements , guidelines for their structure and minimum requirements for their content.

8 Scope 2 [Deleted by the AASB] 3 Other Australian Accounting Standards set out the recognition, measurement and disclosure requirements for specific transactions and other events. 4 This Standard does not apply to the structure and content of condensed interim Financial Statements prepared in accordance with AASB 134 Interim Financial Reporting. However, paragraphs 15 35 apply to such Financial Statements . This Standard applies equally to all entities, including those that present consolidated Financial Statements in accordance with AASB 10 Consolidated Financial Statements and those that present separate Financial Statements in accordance with AASB 127 Separate Financial Statements .

9 5 This Standard uses terminology that is suitable for profit-oriented entities, including public sector business entities. If entities with not-for-profit activities in the private sector or the public sector apply this Standard, they may need to amend the descriptions used for particular line items in the Financial Statements and for the Financial Statements themselves. 6 Similarly, entities that do not have equity as defined in AASB 132 Financial Instruments: Presentation (eg some mutual funds) and entities whose share capital is not equity (eg some co-operative entities) may need to adapt the Financial statement Presentation of members or unitholders interests. Definitions 7 The following terms are used in this Standard with the meanings specified: General purpose Financial Statements (referred to as Financial Statements ) are those intended to meet the needs of users who are not in a position to require an entity to prepare reports tailored to their particular information needs.

10 Impracticable Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so. International Financial Reporting Standards (IFRSs) are Standards and Interpretations issued by the International Accounting Standards Board (IASB). They comprise: (a) International Financial Reporting Standards; (b) International Accounting Standards; (c) IFRIC Interpretations; and Federal Register of Legislative Instruments F2015L01626 AASB 101 7 STANDARD (d) SIC Material Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions that users make on the basis of the Financial Statements . Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances.