By Florence Harper,2014-10-15 05:31
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    This chapter discusses a number of IFRS standards related to financial statement presentation and disclosures. Conceptual considerations related to overall financial statement preparation, such as the use of accrual accounting, are covered by IAS 1. This chapter covers these considerations insofar they are considered significant from a practical point of view or might differ under IFRS and Canadian GAAP. However, it does not examine conceptual issues raised in the IASB Framework for the Preparation and

    Presentation of Financial Statements (IASB Framework). While these conceptual issues are fundamental to

    the preparation of financial statements under IFRS, 2 their coverage is beyond the scope of this publication. In addition, a detailed analysis of the IASB Framework might be unwarranted at this time since it is currently undergoing major revisions (see conceptual framework project in "Future Developments" section). In addition to analyzing certain conceptual issues in IAS 1, this chapter discusses the requirements of a number of IFRS standards and compares them with their counterparts in Canadian GAAP. The following table summarizes the chapter's coverage:

To summarize, this chapter covers various issues related to financial statement presentation and disclosures.

    To illustrate some of the differences between IFRS and Canadian GAAP, this chapter analyzes the following



     IFRS and Canadian GAAP:

    o definition,

    o hierarchy;

     overall considerations:

    o general concepts related to financial statement preparation,

    o true and fair override;

     form at of financial statements:

    o primary financial statements,

    o identification of financial statements,

    o notes to financial statements;

     statement of financial position (balance sheet):

    o form at and structure,

    o basic line items,

    o additional line items,

    o current/non-current classification,

    o disclosures related to equity section; statement of comprehensive income:

    o form at and structure,

    o basic line items,

    o additional line items, headings and subtotals,

    o analysis and expenses,

    o comprehensive income components; statement of changes in equity; statement of cash flows (cash flow statement):

    o key definitions,

    o cash and cash equivalents,

    o general structure,

    o establishing operating cash flows,

    o netting of cash flows,

    o foreign currency cash flows,

    o business acquisitions and disposals,

    o discontinued operations,

    o non-cash transactions;

     note disclosures:

    o objective,

    o contents;

     changes in accounting policies, changes in estimates and correction of errors:

    o changes in accounting policies,

    o changes in accounting estimates,

    o correction of an error,

    o impracticability for retroactive adjustments; events after the reporting period:

    o scope,

    o types of event,

    o accounting and disclosure requirements;

     going concern issues:

    o uncertainties,

    o subsequent events;

     earnings per share (EPS):

    o definitions,

    o basic earnings per share,

    o diluted earnings per share,

    o restatements,

    o presentation and disclosures,

    o additional per share amounts; segment information:

    o objective,

    o management approach,

    o definition,

    o identification of operating segments,

    o aggregation of operating segments,

    o minimum reportable segments,

    o measure of segment's profitability, assets and liabilities,

    o disclosures,

    o reconciliation;

     interim financial information:

    o objective,

    o choices,

    o requirements;

     management commentary:

    o current requirements,

    o changeover to IFRS.


    2. Under both IFRS and Canadian GAAP, entities are required to consider the framework when no standard or interpretation specifically applies.

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