A joint project of the Government Accountancy Sector and

Corporate Government Sector

 Session 2
PAS 1 — Presentation of
Financial Statements
(Includes discussion on the Conceptual Framework for
Financial Reporting)

IAS 1 PAS 1

PAS 1 – Presentation of Financial Statements Slide 2 of 37

 SESSION OVERVIEW

This session covers the salient provisions

of PAS 1 prescribing the presentation of
the financial statements. It includes
discussion on the purpose, components,
general features, structure and content of
the financial statements. The Conceptual
Framework for Financial Reporting is also
briefly discussed.

PAS 1 – Presentation of Financial Statements Slide 3 of 37

 LEARNING OBJECTIVES
At the end of the session, the participant
will be able to:
• Recognize the applicability of the
underlying concepts and assumptions of
the Conceptual Framework for Financial
Reporting; and
• Identify the features, structure and
content of the Financial Statements
enumerated under PAS 1.

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Conceptual Framework for Financial
Reporting

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 Conceptual
Framework for
Financial Reporting

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 Chapter 1
Objective of General Purpose
Financial Reporting

The objective of general purpose financial

reporting is to provide financial information
about the reporting entity that is useful to
existing and potential investors, lenders and
other creditors in making decisions about
providing resources to the entity.

PAS 1 – Presentation of Financial Statements Slide 7 of 37

 Chapter 3
Qualitative Characteristics of Useful
Financial Information
FUNDAMENTAL ENHANCING
Relevance Comparability
Materiality Verifiability
Faithful Timeliness
Representation
Understandability
Complete
Neutral
Free from Error *** Subject to the
Cost Constraint

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 Chapter 4
Remaining Text of the 1989 Framework

UNDERLYING ASSUMPTION
Going Concern
The financial statements are normally
prepared on the assumption that an entity
is a going concern and will continue
operation for the foreseeable future.

PAS 1 – Presentation of Financial Statements Slide 9 of 37

 Chapter 4
Remaining Text of the 1989 Framework

Elements of Financial Statements

Financial Financial
Position Performance

Assets Income
Liabilities Expenses
Equity

PAS 1 – Presentation of Financial Statements Slide 10 of 37

 Chapter 4
Remaining Text of the 1989 Framework

Recognition
a. Probable that any future economic
benefits will flow to or from the entity

b. Cost or value can be measured with

reliability

PAS 1 – Presentation of Financial Statements Slide 11 of 37

 Chapter 4
Remaining Text of the 1989 Framework

Measurement

a. Historical Cost
b. Current Cost
c. Realizable Value
d. Present Value

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 Chapter 4
Remaining Text of the 1989 Framework

Concepts of Capital and

Capital Maintenance

Financial Physical

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 PAS 1
Presentation of Financial
Statements

Purpose

Components

General Features

Structure and Content

PAS 1 – Presentation of Financial Statements Slide 14 of 37

 Financial are a statements
structured representation of the financial
position and financial performance of an
entity.

The objective of financial statements is to

provide information about the financial
position, financial performance and
cash flows of an entity that is useful to a
wide range of users in making economic
decisions.

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 Complete Set of Financial Statements

a. A Statement of Financial Position as

at the end of the period;
b. A Statement of Profit or Loss and
Other Comprehensive Income for the
period;
c. A Statement of Changes in Equity for
the period;
d. A Statement of Cash Flows for the
period;

PAS 1 – Presentation of Financial Statements Slide 16 of 37

 Complete Set of Financial Statements
e. Notes, comprising a summary of significant
accounting policies and other explanatory
information;
ea. Comparative information in respect of the
preceding period as specified in paragraphs
38 and 38A; and
f. A statement of financial position as at the
beginning of the preceding period in
accordance with paragraphs 40A–40D.

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 General Features/Overall Considerations
Fair Presentation and
Compliance with PFRSs

Consistency of Going Concern

Presentation

Comparative Accrual Basis of

Information Accounting

Frequency of Materiality and

Reporting Aggregation
Offsetting

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 Presentation of Financial
Statements

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 Financial Statements:
Structure and Content
Identification of the Financial Statements

a. Name of the reporting entity

b. Whether the FS are Individual or Group
c. Date of the FS
d. The presentation currency
e. Level of rounding

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 Statement of Financial Position

 Minimum Line Items in the Statement

of Financial Position (par. 54)
 Additional line items may be
presented if relevant (par. 55)
 Current/non-current distinction

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 Statement of Financial Position
Current Assets
(a) it expects to realize the asset, or intends to sell or
consume it, in its normal operating cycle;
(b) it holds the asset primarily for the purpose of trading;
(c) it expects to realize the asset within twelve months
after the reporting period; or
(d) the asset is cash or a cash equivalent (as defined in
PAS 7) unless the asset is restricted from being
exchanged or used to settle a liability for at least twelve
months after the reporting period.

All other assets are non-current.

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 Statement of Financial Position
Current Liabilities
(a) it expects to settle the liability in its normal operating
cycle;
(b) it holds the liability primarily for the purpose of
trading;
(c) the liability is due to be settled within twelve months
after the reporting period; or
(d) it does not have an unconditional right to defer
settlement of the liability for at least twelve months after
the reporting period

All other liabilities are non-current.

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 (NAME OF THE ENTITY)
CONDENSED STATEMENT OF FINANCIAL POSITION
(ALL FUNDS OR NAME OF FUND)
AS AT DECEMBER 31, 2016

NOTE* 2016 2015

ASSETS

Current Assets
Cash and Cash Equivalents 6 XXX XXX
International Reserves XXX XXX
Financial Assets 7 XXX XXX
Other Investments XXX XXX
Receivables 8 XXX XXX
Inventories 9 XXX XXX
Non-Current Assets Held for Sale XXX XXX
Other Current Assets 14 XXX XXX
Total Current Assets XXX XXX

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Non-Current Assets
Non-International Reserves Foreign Assets XXX XXX
Financial Assets 7 XXX XXX
Investments in Joint Venture XXX XXX
Investments in Associates/Affiliates XXX XXX
Investments in Subsidiary XXX XXX
Other Investments XXX XXX
Receivables 8 XXX XXX
Investment Property 10 XXX XXX
Property, Plant and Equipment 11 XXX XXX
Biological Assets 12 XXX XXX
Intangible Assets 13 XXX XXX
Deferred Tax Assets XXX XXX
Other Non-Current Assets 14 XXX XXX
Total Non-Current Assets XXX XXX

Total Assets XXX XXX

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 LIABILITIES

Current Liabilities
Financial Liabilities 15 XXX XXX
Inter-Agency Payables 16 XXX XXX
Trust Liabilities 17 XXX XXX
Deferred Credits/Unearned Income 18 XXX XXX
Provisions 19 XXX XXX
Other Payables 20 XXX XXX
Total Current Liabilities XXX XXX

Non-Current Liabilities
Financial Liabilities 15 XXX XXX
Currency Issued XXX XXX
Deposit Liabilities XXX XXX
Inter-Agency Payables 16 XXX XXX
Trust Liabilities 17 XXX XXX
Deferred Credits/Unearned Income 18 XXX XXX
Provisions 19 XXX XXX
Deferred Tax Liabilities XXX XXX
Other Payables 20 XXX XXX
Total Non-Current Liabilities XXX XXX

Total Liabilities XXX XXX

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 EQUITY

Government Equity XXX XXX

Revaluation Surplus XXX XXX
Retained Earnings/(Deficit) XXX XXX
Stockholders' Equity XXX XXX
Cumulative Translation Adjustment XXX XXX
Cumulative Changes in Fair Value XXX XXX
Members' Equity XXX XXX
Total Equity XXX XXX

Total Liabilities and Equity XXX XXX

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 Statement of Comprehensive Income

 Comprehensive Income = Profit or

loss+ Other Comprehensive Income
 Single or Two Statement
 Function or Nature of Expense
presentation

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 (NAME OF THE ENTITY)
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
(ALL FUNDS OR NAME OF FUND)
FOR THE YEAR ENDED DECEMBER 31, 2016

NOTE* 2016 2015

Income
Service and Business Income 22 XXX XXX
Assistance and Subsidy 28 XXX XXX
Shares, Grant and Donations 23 XXX XXX
Gains 29 XXX XXX
Other Non-Operating Income 29 XXX XXX

Total Income XXX XXX

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Expenses
Personnel Services 24 (XXX) (XXX)
Maintenance and Other Operating Expenses 25 (XXX) (XXX)
Financial Expenses 26 (XXX) (XXX)
Direct Costs (XXX) (XXX)
Non-Cash Expenses 29 (XXX) (XXX)

Total Expenses (XXX) (XXX)

Profit/(Loss) Before Tax XXX XXX

Income Tax Expense (XXX) (XXX)
Net Income/(Loss) XXX XXX
Other Comprehensive Income/(Loss) for the Period 30 XXX XXX
Comprehensive Income/(Loss) XXX XXX

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 Statement of Changes in Equity

Shows the
movements
in the
elements or
components
of equity for
a period.

PAS 1 – Presentation of Financial Statements Slide 31 of 37

 (NAME OF THE ENTITY)
STATEMENT OF CHANGES IN EQUITY
(ALL FUNDS OR NAME OF FUND)
FOR THE YEAR ENDED DECEMBER 31, 2016

Contributed Revaluation Retained Share Share Cumulative Cumulative Members' TOTAL

Capital Surplus Earnings/ Capital Premium Translation Changes in Fair Equity
(Deficit) Adjustment Value of
Investments
BALANCE AT JANUARY 1, 2015 XXX XXX XXX XXX XXX XXX XXX XXX XXX

ADJUSTMENTS:
Add/(Deduct):
Changes in Accounting Policy XXX XXX XXX XXX XXX XXX XXX XXX XXX
Prior Period Errors XXX XXX XXX XXX XXX XXX XXX XXX XXX
Other Adjustments XXX XXX XXX XXX XXX XXX XXX XXX XXX

RESTATED BALANCE AT JANUARY 1, 2015 XXX XXX XXX XXX XXX XXX XXX XXX XXX

CHANGES IN EQUITY FOR 2015

Add/(Deduct):
Issuances of Share Capital XXX XXX
Additional Capital from National Government XXX
Members' Contribution XXX
Comprehensive Income for the year XXX XXX XXX XXX
Dividends (XXX)
Other Adjustments XXX XXX XXX XXX XXX XXX XXX XXX XXX

BALANCE AT DECEMBER 31, 2015 XXX XXX XXX XXX XXX XXX XXX XXX XXX

CHANGES IN EQUITY FOR 2016

Add/(Deduct):
Issuances of Share Capital XXX XXX
Additional Capital from National Government XXX
Members' Contribution XXX
Comprehensive Income for the year XXX XXX XXX XXX
Dividends 0
Other Adjustments XXX XXX XXX XXX XXX XXX XXX XXX XXX

BALANCE AT DECEMBER 31, 2016 XXX XXX XXX XXX XXX XXX XXX XXX XXX

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 Statement of Cash Flows

 Ability to generate cash and cash

equivalents
 Utilization of cash flows
 PAS 7

PAS 1 – Presentation of Financial Statements Slide 33 of 37

 Notes to Financial Statements

Provides information about:

 Basis of preparation of the FSs
 Specific accounting policies used
 Information required by PFRSs not
presented elsewhere in the FSs
 Other relevant information

PAS 1 – Presentation of Financial Statements Slide 34 of 37

 Order of Presentation of the Notes

•Statement of Compliance with PFRSs

a.

•Summary of Significant Accounting

b. Policies

•Supporting Information for the Line Items

c.

•Other Disclosures
d.

PAS 1 – Presentation of Financial Statements Slide 35 of 37

 Annual
Financial
statements
covering periods
beginning
January 1,
2016.

PAS 1 – Presentation of Financial Statements Slide 36 of 37

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