24 Questions
What must management do regarding an entity's ability to continue as a going concern?
Prepare financial statements on a going concern basis unless certain criteria are met
What is required if financial statements are not prepared on a going concern basis?
Disclose the basis of presentation and reasons
Under what circumstances can an entity offset assets and liabilities or income and expenses?
If required or permitted by an IFRS
When should an entity present items separately in its financial statements?
Each material class of similar items and items of dissimilar nature or function unless they are immaterial
When can an entity change the presentation and classification of items in its financial statements?
If a significant change in the nature of the entity’s operations has occurred, or an IFRS requires a change
What is the role of materiality in financial reporting?
Determines what information needs to be separately presented based on significance
What is required to be included as a minimum in the statement of comprehensive income according to IAS 1?
Revenue and tax expense
According to IAS 1, what should be disclosed separately when they are material?
Expenses
What should be classified by their nature or function within the entity according to IAS 1 for financial statements presentation?
Expenses
In the statement of comprehensive income, what should be included when relevant to understand the entity's financial performance?
Additional line items, headings, and subtotals
According to IAS 1, what should be disclosed on the face of the income statement as allocations of total comprehensive income?
Attributable to non-controlling interest and equity holders of the parent
What is required to be presented on the face of the statement of comprehensive income according to IAS 1 when relevant?
Aggregated by function within the entity
When is a liability classified as current according to IAS 1?
When it is expected to be settled in the entity's normal operating cycle.
Under what conditions are financial liabilities classified as current even if the original term was for a period longer than twelve months?
When there is an agreement to refinance or reschedule payments after the financial statements are authorized for issue.
Why would an entity classify its financial liabilities as current even if the original term was longer than twelve months?
To reflect a recent agreement to refinance or reschedule payments.
What happens if an entity does not have an unconditional right to defer settlement of a liability for at least twelve months after the reporting period?
The liability must be reclassified as non-current.
In the context of financial liabilities, what does 'held primarily for trading' mean?
The liability is held with the intention of selling it in the short term for profit.
Under what circumstances would an entity classify liabilities as non-current?
When they are not expected to be settled within twelve months after the reporting period.
What information must be disclosed for each class of share capital?
Number of shares authorised and issued, par value per share, and reconciliation of outstanding shares
Which aspect about shares must be included in the disclosure?
Rights, preferences, and restrictions attached to each class of shares
What information must be provided about shares held by the entity or its subsidiaries?
Shares held by the entity or its subsidiaries or associates
What should be disclosed regarding shares reserved for issue under options and contracts?
Terms and amounts of shares reserved for issue under options and contracts
In addition to share capital details, what else must be disclosed within equity?
Description of the nature and purpose of each reserve within equity
Where should all items of income and expense recognised during a period be included?
Profit or loss unless an IFRS requires otherwise
Test your knowledge on the presentation of financial statements according to IAS 1, focusing on current liabilities and refinancing. The quiz includes scenarios related to loan maturity, refinancing terms, and payment schedules.
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