Accounting- Presentation of financial situations

Question	Answer
Fair presentation	requires that the financial statements present fairly the financial position, financial performance and cash flows of the entity
Compliance with IFRS	it has to be stated in the notes explicitly if the financial statements of an entity comply with IFRS
Going concern	financial statement prepared on a going concern basis ( = assumption that the company will continue operating in the next 1-2 years)
Accrual basis of accounting	excluding the cash flow statement, all other components of financial statements must be prepared on accrual basis (assets & liabilities recognized when they are receivable/payable, not when the cash is received/paid)
Consistency of presentation	entities required to retain their presentation and classification of items in successive period unless an alternative would be more appropriate or if so required by a new or amended standard
Materiality	an entity shall present separately each material class of similar items (cars/machines/buildings)
Offsetting	assets, liabilities, income and expenses can't be offset against each other unless required or permitted by an IFRS (all recorded and show in the statements, not only profit...)
Comparative information	providing comparative information from the previous period and in case the standards have changed preparing the statements of previous years by using renewed standard

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	Created by so liu almost 10 years ago