Search for topics, meetings etc.

  Global (English)

Home News Publications Meetings Standards Projects Jurisdictions Resources

International Accounting Standards International Accounting Standards IAS 1 — Presentation of Financial Sta
Standards

IAS 1 — Presentation of Financial

Statements
IAS 1 sets out the overall requirements for financial statements, including how they sh
structured, the minimum requirements for their content and overriding concepts such
ing concern, the accrual basis of accounting and the current/non-current distinction. T
dard requires a complete set of financial statements to comprise a statement of finan
tion, a statement of profit or loss and other comprehensive income, a statement of ch
equity and a statement of cash flows. IAS 1 was reissued in September 2007 and applie
nual periods beginning on or after 1 January 2009. IAS 1 will be superseded by IFRS 18
'Presentation and Disclosure in Financial Statements', which becomes effective for an
riods beginning on or after 1 January 2027.

History of IAS 1
Date Development Comments

March 1974 Exposure Draft E1 Disclosure of

Accounting Policies

January 1975 IAS 1 Disclosure of Accounting Operative for periods beginn

Policies issued or after 1 January 1975

June 1975 Exposure Draft E5 Information to

Be Disclosed in Financial
Statements published

October 1976 IAS 5 Information to Be Disclosed Operative for periods beginn

in Financial Statements issued or after 1 January 1975

July 1978 Exposure Draft E14 Current

Assets and Current Liabilities
published

November 1979 IAS 13 Presentation of Current Operative for periods beginn

Assets and Current Liabilities or after 1 January 1981
issued

1994 IAS 1, IAS 5, and IAS 13

Date Development Comments

reformatted

July 1996 Exposure Draft E53 Presentation

of Financial Statements published

August 1997 Operative for periods beginn

IAS 1 Presentation of Financial
or after 1 July 1998
Statements (1997) issued

(Supersedes IAS 1 (1975), IAS 5, and IAS 13

(1979))

18 December 2003 IAS 1 Presentation of Financial Effective for annual periods

Statements (2003) issued ning on or after 1 January 20

18 August 2005 Amended by Amendment to IAS 1 Effective for annual periods

— Capital Disclosures ning on or after 1 January 20

16 March 2006 Exposure Draft Proposed Comment deadline 17 July 2

Amendments to IAS 1 – A Revised
Presentation published

22 June 2006 Exposure Draft Financial Comment deadline 23 Octob

Instruments Puttable at Fair 2006
Value and Obligations Arising on
Liquidation published

6 September 2007 IAS 1 Presentation of Financial Effective for annual periods

Statements (2007) issued ning on or after 1 January 20

14 February 2008 Amended by Puttable Financial Effective for annual reportin

Instruments and Obligations ods beginning on or after 1
Arising on Liquidation January 2009

22 May 2008 Amended by Annual Effective for annual reportin

Improvements to IFRSs 2007 ods beginning on or after 1
(classification of derivatives as January 2009
current or non-current)

16 April 2009 Amended by Improvements to Effective for annual periods

IFRSs 2009 (classification of liabili- ning on or after 1 January 20
ties as current)

6 May 2010 Amended by Improvements to Effective for annual periods

IFRSs 2010 (clarification of state- ning on or after 1 January 20
ment of changes in equity)
Date Development Comments

27 May 2010 Exposure Draft ED/2010/5 Comment deadline 30 Septe

Presentation of Items of Other 2010
Comprehensive Income
published

16 June 2011 Amended by Presentation of Effective for annual periods

Items of Other Comprehensive ning on or after 1 July 2012
Income

17 May 2012 Amended by Annual Effective for annual periods

Improvements 2009-2011 Cycle ning on or after 1 January 20
(comparative information)

18 December 2014 Amended by Disclosure Initiative Effective for annual periods

(Amendments to IAS 1) (project ning on or after 1 January 20
history)

31 October 2018 Amended by Definition of Effective for annual periods

Material (Amendments to IAS 1 ning on or after 1 January 20
and IAS 8)

23 January 2020 Amended by Classification of Effective for annual periods

Liabilities as Current or Non-cur- ning on or after 1 January 20
rent (Amendments to IAS 1)

15 July 2020 IASB defers effective date of The new effective date of the
Classification of Liabilities as January 2020 amendments i
Current or Non-current 1 January 2023
(Amendments to IAS 1) to 1
January 2022

12 February 2021 Amended by Disclosure of Effective for annual periods

Accounting Policies ning on or after 1 January 20
(Amendments to IAS 1)

31 October 2022 Amended by Non-current Effective for annual periods

Liabilities with Covenants ning on or after 1 January 20
(Amendments to IAS 1) the effective date of the Janu
2020 amendments is also pu
to 1 January 2024

9 April 2024 IFRS 18 Presentation and

Disclosure in Financial
Statements issued, which will su-
persede IAS 1 as of 1 January
2027
Related Interpretations
IAS 1 (2003) superseded SIC-18 Consistency - Alternative Methods
IFRIC 17 Distributions of Non-cash Assets to Owners
SIC-27 Evaluating the Substance of Transactions in the Legal Form of a Lease
SIC-29 Disclosure - Service Concession Arrangements

Amendments under consideration

Financial instruments with characteristics of equity

Summary of IAS 1
Objective of IAS 1
The objective of IAS 1 (2007) is to prescribe the basis for presentation of general purpose fin
statements, to ensure comparability both with the entity's financial statements of previous p
and with the financial statements of other entities. IAS 1 sets out the overall requirements fo
presentation of financial statements, guidelines for their structure and minimum requiremen
their content. [IAS 1.1] Standards for recognising, measuring, and disclosing specific transact
addressed in other Standards and Interpretations. [IAS 1.3]

Scope
IAS 1 applies to all general purpose financial statements that are prepared and presented in
dance with International Financial Reporting Standards (IFRSs). [IAS 1.2]

General purpose financial statements are those intended to serve users who are not in a pos
require financial reports tailored to their particular information needs. [IAS 1.7]

Objective of financial statements

The objective of general purpose financial statements is to provide information about the fin
position, financial performance, and cash flows of an entity that is useful to a wide range of u
making economic decisions. To meet that objective, financial statements provide information
an entity's: [IAS 1.9]

assets
liabilities
equity
income and expenses, including gains and losses
contributions by and distributions to owners (in their capacity as owners)
cash flows.

That information, along with other information in the notes, assists users of financial statem
predicting the entity's future cash flows and, in particular, their timing and certainty.

Components of financial statements

A complete set of financial statements includes: [IAS 1.10]

a statement of financial position (balance sheet) at the end of the period

a statement of profit or loss and other comprehensive income for the period (presented
single statement, or by presenting the profit or loss section in a separate statement of p
loss, immediately followed by a statement presenting comprehensive income beginning
profit or loss)
a statement of changes in equity for the period
a statement of cash flows for the period
notes, comprising a summary of significant accounting policies and other explanatory n
 comparative information prescribed by the standard.

An entity may use titles for the statements other than those stated above. All financial state
are required to be presented with equal prominence. [IAS 1.10]

When an entity applies an accounting policy retrospectively or makes a retrospective restate

items in its financial statements, or when it reclassifies items in its financial statements, it mu
present a statement of financial position (balance sheet) as at the beginning of the earliest co
tive period.

Reports that are presented outside of the financial statements – including financial reviews b
agement, environmental reports, and value added statements – are outside the scope of IFR
1.14]

Fair presentation and compliance with IFRSs

The financial statements must "present fairly" the financial position, financial performance a
flows of an entity. Fair presentation requires the faithful representation of the effects of tran
other events, and conditions in accordance with the definitions and recognition criteria for a
bilities, income and expenses set out in the Framework. The application of IFRSs, with additio
closure when necessary, is presumed to result in financial statements that achieve a fair pres
tion. [IAS 1.15]

IAS 1 requires an entity whose financial statements comply with IFRSs to make an explicit an
served statement of such compliance in the notes. Financial statements cannot be described
plying with IFRSs unless they comply with all the requirements of IFRSs (which includes Inter
Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and
Interpretations). [IAS 1.16]

Inappropriate accounting policies are not rectified either by disclosure of the accounting poli
or by notes or explanatory material. [IAS 1.18]

IAS 1 acknowledges that, in extremely rare circumstances, management may conclude that c
ance with an IFRS requirement would be so misleading that it would conflict with the objectiv
nancial statements set out in the Framework. In such a case, the entity is required to depart
IFRS requirement, with detailed disclosure of the nature, reasons, and impact of the departu
1.19-21]

Going concern
The Conceptual Framework notes that financial statements are normally prepared assuming
tity is a going concern and will continue in operation for the foreseeable future. [Conceptual
Framework, paragraph 4.1]

IAS 1 requires management to make an assessment of an entity's ability to continue as a goi

cern. If management has significant concerns about the entity's ability to continue as a goin
cern, the uncertainties must be disclosed. If management concludes that the entity is not a g
concern, the financial statements should not be prepared on a going concern basis, in which
1 requires a series of disclosures. [IAS 1.25]

Accrual basis of accounting

IAS 1 requires that an entity prepare its financial statements, except for cash flow informatio
the accrual basis of accounting. [IAS 1.27]

Consistency of presentation
The presentation and classification of items in the financial statements shall be retained from
riod to the next unless a change is justified either by a change in circumstances or a requirem
new IFRS. [IAS 1.45]
Materiality and aggregation
Information is material if omitting, misstating or obscuring it could reasonably be expected t
ence decisions that the primary users of general purpose financial statements make on the b
those financial statements, which provide financial information about a specific reporting en
1.7]*

Each material class of similar items must be presented separately in the financial statements
Dissimilar items may be aggregated only if they are individually immaterial. [IAS 1.29]

However, information should not be obscured by aggregating or by providing immaterial info

materiality considerations apply to the all parts of the financial statements, and even when a
dard requires a specific disclosure, materiality considerations do apply. [IAS 1.30A-31]

* Clarified by Definition of Material (Amendments to IAS 1 and IAS 8), effective 1 January 2020.

Offsetting
Assets and liabilities, and income and expenses, may not be offset unless required or permit
an IFRS. [IAS 1.32]

Comparative information
IAS 1 requires that comparative information to be disclosed in respect of the previous period
amounts reported in the financial statements, both on the face of the financial statements a
notes, unless another Standard requires otherwise. Comparative information is provided for
tive and descriptive where it is relevant to understanding the financial statements of the curr
riod. [IAS 1.38]

An entity is required to present at least two of each of the following primary financial statem
1.38A]

statement of financial position*

statement of profit or loss and other comprehensive income
separate statements of profit or loss (where presented)
statement of cash flows
statement of changes in equity
related notes for each of the above items.

* A third statement of financial position is required to be presented if the entity retrospective

plies an accounting policy, restates items, or reclassifies items, and those adjustments had a
effect on the information in the statement of financial position at the beginning of the comp
period. [IAS 1.40A]

Where comparative amounts are changed or reclassified, various disclosures are required. [I

Structure and content of financial statements in general

IAS 1 requires an entity to clearly identify: [IAS 1.49-51]

the financial statements, which must be distinguished from other information in a publ
document
each financial statement and the notes to the financial statements.

In addition, the following information must be displayed prominently, and repeated as neces
[IAS 1.51]

the name of the reporting entity and any change in the name
whether the financial statements are a group of entities or an individual entity
information about the reporting period
 the presentation currency (as defined by IAS 21 The Effects of Changes in Foreign Excha
Rates)
the level of rounding used (e.g. thousands, millions).

Reporting period
There is a presumption that financial statements will be prepared at least annually. If the ann
porting period changes and financial statements are prepared for a different period, the ent
disclose the reason for the change and state that amounts are not entirely comparable. [IAS

Statement of financial position (balance sheet)

Current and non-current classification

An entity must normally present a classified statement of financial position, separating curre
non-current assets and liabilities, unless presentation based on liquidity provides informatio
reliable. [IAS 1.60] In either case, if an asset (liability) category combines amounts that will be
ceived (settled) after 12 months with assets (liabilities) that will be received (settled) within 12
months, note disclosure is required that separates the longer-term amounts from the 12-mo
amounts. [IAS 1.61]

Current assets are assets that are: [IAS 1.66]

expected to be realised in the entity's normal operating cycle

held primarily for the purpose of trading
expected to be realised within 12 months after the reporting period
cash and cash equivalents (unless restricted).

All other assets are non-current. [IAS 1.66]

Current liabilities are those: [IAS 1.69]

expected to be settled within the entity's normal operating cycle

held for purpose of trading
due to be settled within 12 months
for which the entity does not have the right at the end of the reporting period to defer s
ment beyond 12 months.

Other liabilities are non-current.

When a long-term debt is expected to be refinanced under an existing loan facility, and the e
the discretion to do so, the debt is classified as non-current, even if the liability would otherw
due within 12 months. [IAS 1.73]

If a liability has become payable on demand because an entity has breached an undertaking
long-term loan agreement on or before the reporting date, the liability is current, even if the
has agreed, after the reporting date and before the authorisation of the financial statements
sue, not to demand payment as a consequence of the breach. [IAS 1.74] However, the liabilit
sified as non-current if the lender agreed by the reporting date to provide a period of grace e
least 12 months after the end of the reporting period, within which the entity can rectify the
and during which the lender cannot demand immediate repayment. [IAS 1.75]

Settlement by the issue of equity instruments does not impact classification. [IAS 1.76B]

Line items

The line items to be included on the face of the statement of financial position are: [IAS 1.54]

(a) property, plant and equipment

 (b) investment property

(c) intangible assets

(d) financial assets (excluding amounts shown under (e), (h), and (i))

(e) investments accounted for using the equity method

(f) biological assets

(g) inventories

(h) trade and other receivables

(i) cash and cash equivalents

(j) assets held for sale

(k) trade and other payables

(l) provisions

(m) financial liabilities (excluding amounts shown under (k) and (l))

(n) current tax liabilities and current tax assets, as defined in IAS 12

(o) deferred tax liabilities and deferred tax assets, as defined in IAS 12

(p) liabilities included in disposal groups

(q) non-controlling interests, presented within equity

(r) issued capital and reserves attributable to owners of the parent.

Additional line items, headings and subtotals may be needed to fairly present the entity's fin
position. [IAS 1.55]

When an entity presents subtotals, those subtotals shall be comprised of line items made up
amounts recognised and measured in accordance with IFRS; be presented and labelled in a c
understandable manner; be consistent from period to period; and not be displayed with mo
nence than the required subtotals and totals. [IAS 1.55A]*

* Added by Disclosure Initiative (Amendments to IAS 1), effective 1 January 2016.

Further sub-classifications of line items presented are made in the statement or in the notes
ample: [IAS 1.77-78]:

classes of property, plant and equipment

disaggregation of receivables
disaggregation of inventories in accordance with IAS 2 Inventories
disaggregation of provisions into employee benefits and other items
classes of equity and reserves.

Format of statement

IAS 1 does not prescribe the format of the statement of financial position. Assets can be pres
current then non-current, or vice versa, and liabilities and equity can be presented current th
current then equity, or vice versa. A net asset presentation (assets minus liabilities) is allowed
long-term financing approach used in UK and elsewhere – fixed assets + current assets - sho
payables = long-term debt plus equity – is also acceptable.

Share capital and reserves

Regarding issued share capital and reserves, the following disclosures are required: [IAS 1.79
 numbers of shares authorised, issued and fully paid, and issued but not fully paid
par value (or that shares do not have a par value)
a reconciliation of the number of shares outstanding at the beginning and the end of th
description of rights, preferences, and restrictions
treasury shares, including shares held by subsidiaries and associates
shares reserved for issuance under options and contracts
a description of the nature and purpose of each reserve within equity.

Additional disclosures are required in respect of entities without share capital and where an
has reclassified puttable financial instruments. [IAS 1.80-80A]

Statement of profit or loss and other comprehensive income

Concepts of profit or loss and comprehensive income

Profit or loss is defined as "the total of income less expenses, excluding the components of o
comprehensive income". Other comprehensive income is defined as comprising "items of in
and expense (including reclassification adjustments) that are not recognised in profit or loss
quired or permitted by other IFRSs". Total comprehensive income is defined as "the change
during a period resulting from transactions and other events, other than those changes resu
from transactions with owners in their capacity as owners". [IAS 1.7]

Comprehensive income = Profit + Other

for the period or loss comprehensive incom

All items of income and expense recognised in a period must be included in profit or loss un
Standard or an Interpretation requires otherwise. [IAS 1.88] Some IFRSs require or permit th
components to be excluded from profit or loss and instead to be included in other comprehe
income.

Examples of items recognised outside of profit or loss

Changes in revaluation surplus where the revaluation method is used under IAS 16
Property, Plant and Equipment and IAS 38 Intangible Assets
Remeasurements of a net defined benefit liability or asset recognised in accordance w
IAS 19 Employee Benefits (2011)
Exchange differences from translating functional currencies into presentation currenc
accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates
Gains and losses on remeasuring available-for-sale financial assets in accordance wit
IAS 39 Financial Instruments: Recognition and Measurement
The effective portion of gains and losses on hedging instruments in a cash flow hedge
der IAS 39 or IFRS 9 Financial Instruments
Gains and losses on remeasuring an investment in equity instruments where the enti
elected to present them in other comprehensive income in accordance with IFRS 9
The effects of changes in the credit risk of a financial liability designated as at fair valu
through profit and loss under IFRS 9.

In addition, IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors requires t
rection of errors and the effect of changes in accounting policies to be recognised outside pr
loss for the current period. [IAS 1.89]
Choice in presentation and basic requirements

An entity has a choice of presenting:

a single statement of profit or loss and other comprehensive income, with profit or loss
other comprehensive income presented in two sections, or
two statements:
a separate statement of profit or loss
a statement of comprehensive income, immediately following the statement of pro
loss and beginning with profit or loss [IAS 1.10A]

The statement(s) must present: [IAS 1.81A]

profit or loss
total other comprehensive income
comprehensive income for the period
an allocation of profit or loss and comprehensive income for the period between non-co
interests and owners of the parent.

Profit or loss section or statement

The following minimum line items must be presented in the profit or loss section (or separat
ment of profit or loss, if presented): [IAS 1.82-82A]

revenue
gains and losses from the derecognition of financial assets measured at amortised cost
finance costs
share of the profit or loss of associates and joint ventures accounted for using the equit
method
certain gains or losses associated with the reclassification of financial assets
tax expense
a single amount for the total of discontinued items

Expenses recognised in profit or loss should be analysed either by nature (raw materials, sta
costs, depreciation, etc.) or by function (cost of sales, selling, administrative, etc). [IAS 1.99] If
categorises by function, then additional information on the nature of expenses – at a minimu
preciation, amortisation and employee benefits expense – must be disclosed. [IAS 1.104]

Other comprehensive income section

The other comprehensive income section is required to present line items which are classifie
their nature, and grouped between those items that will or will not be reclassified to profit an
subsequent periods. [IAS 1.82A]

An entity's share of OCI of equity-accounted associates and joint ventures is presented in agg
as single line items based on whether or not it will subsequently be reclassified to profit or lo
1.82A]*

* Clarified by Disclosure Initiative (Amendments to IAS 1), effective 1 January 2016.

When an entity presents subtotals, those subtotals shall be comprised of line items made up
amounts recognised and measured in accordance with IFRS; be presented and labelled in a c
understandable manner; be consistent from period to period; not be displayed with more pr
nence than the required subtotals and totals; and reconciled with the subtotals or totals req
IFRS. [IAS 1.85A-85B]*

* Added by Disclosure Initiative (Amendments to IAS 1), effective 1 January 2016.

Other requirements

Additional line items may be needed to fairly present the entity's results of operations. [IAS 1
Items cannot be presented as 'extraordinary items' in the financial statements or in the note
1.87]

Certain items must be disclosed separately either in the statement of comprehensive income
the notes, if material, including: [IAS 1.98]

write-downs of inventories to net realisable value or of property, plant and equipment t

erable amount, as well as reversals of such write-downs
restructurings of the activities of an entity and reversals of any provisions for the costs o
restructuring
disposals of items of property, plant and equipment
disposals of investments
discontinuing operations
litigation settlements
other reversals of provisions

Statement of cash flows

Rather than setting out separate requirements for presentation of the statement of cash flow
1.111 refers to IAS 7 Statement of Cash Flows.

Statement of changes in equity

IAS 1 requires an entity to present a separate statement of changes in equity. The statement
show: [IAS 1.106]

total comprehensive income for the period, showing separately amounts attributable to
of the parent and to non-controlling interests
the effects of any retrospective application of accounting policies or restatements made
cordance with IAS 8, separately for each component of other comprehensive income
reconciliations between the carrying amounts at the beginning and the end of the perio
each component of equity, separately disclosing:
profit or loss
other comprehensive income*
transactions with owners, showing separately contributions by and distributions to
and changes in ownership interests in subsidiaries that do not result in a loss of co

* An analysis of other comprehensive income by item is required to be presented either in th

ment or in the notes. [IAS 1.106A]

The following amounts may also be presented on the face of the statement of changes in eq
they may be presented in the notes: [IAS 1.107]

amount of dividends recognised as distributions

the related amount per share.

Notes to the financial statements

The notes must: [IAS 1.112]

present information about the basis of preparation of the financial statements and the
accounting policies used
disclose any information required by IFRSs that is not presented elsewhere in the financ
ments and
provide additional information that is not presented elsewhere in the financial statemen
relevant to an understanding of any of them

Notes are presented in a systematic manner and cross-referenced from the face of the finan
statements to the relevant note. [IAS 1.113]

IAS 1.114 suggests that the notes should normally be presented in the following order:*
 a statement of compliance with IFRSs
a summary of significant accounting policies applied, including: [IAS 1.117]
the measurement basis (or bases) used in preparing the financial statements
the other accounting policies used that are relevant to an understanding of the fina
statements
supporting information for items presented on the face of the statement of financial po
(balance sheet), statement(s) of profit or loss and other comprehensive income, statem
changes in equity and statement of cash flows, in the order in which each statement an
line item is presented
other disclosures, including:
contingent liabilities (see IAS 37) and unrecognised contractual commitments
non-financial disclosures, such as the entity's financial risk management objectives
policies (see IFRS 7 Financial Instruments: Disclosures)

* Disclosure Initiative (Amendments to IAS 1), effective 1 January 2016, clarifies this order just to be an example of how
be ordered and adds additional examples of possible ways of ordering the notes to clarify that understandability and
bility should be considered when determining the order of the notes.

Other disclosures
Judgements and key assumptions

An entity must disclose, in the summary of significant accounting policies or other notes, the
ments, apart from those involving estimations, that management has made in the process o
ing the entity's accounting policies that have the most significant effect on the amounts reco
the financial statements. [IAS 1.122]

Examples cited in IAS 1.123 include management's judgements in determining:

when substantially all the significant risks and rewards of ownership of financial assets
assets are transferred to other entities
whether, in substance, particular sales of goods are financing arrangements and theref
not give rise to revenue.

An entity must also disclose, in the notes, information about the key assumptions concerning
ture, and other key sources of estimation uncertainty at the end of the reporting period, that
significant risk of causing a material adjustment to the carrying amounts of assets and liabili
within the next financial year. [IAS 1.125] These disclosures do not involve disclosing budgets
casts. [IAS 1.130]

Dividends

In addition to the distributions information in the statement of changes in equity (see above
lowing must be disclosed in the notes: [IAS 1.137]

the amount of dividends proposed or declared before the financial statements were au
for issue but which were not recognised as a distribution to owners during the period, a
related amount per share
the amount of any cumulative preference dividends not recognised.

Capital disclosures

An entity discloses information about its objectives, policies and processes for managing cap
1.134] To comply with this, the disclosures include: [IAS 1.135]

qualitative information about the entity's objectives, policies and processes for managin
tal, including>
description of capital it manages
 nature of external capital requirements, if any
how it is meeting its objectives
quantitative data about what the entity regards as capital
changes from one period to another
whether the entity has complied with any external capital requirements and
if it has not complied, the consequences of such non-compliance.

Puttable financial instruments

IAS 1.136A requires the following additional disclosures if an entity has a puttable instrumen
classified as an equity instrument:

summary quantitative data about the amount classified as equity

the entity's objectives, policies and processes for managing its obligation to repurchase
deem the instruments when required to do so by the instrument holders, including any
from the previous period
the expected cash outflow on redemption or repurchase of that class of financial instru
and
information about how the expected cash outflow on redemption or repurchase was
determined.

Other information

The following other note disclosures are required by IAS 1 if not disclosed elsewhere in infor
published with the financial statements: [IAS 1.138]

domicile and legal form of the entity

country of incorporation
address of registered office or principal place of business
description of the entity's operations and principal activities
if it is part of a group, the name of its parent and the ultimate parent of the group
if it is a limited life entity, information regarding the length of the life

Terminology
The 2007 comprehensive revision to IAS 1 introduced some new terminology. Consequential
ments were made at that time to all of the other existing IFRSs, and the new terminology has
used in subsequent IFRSs including amendments. IAS 1.8 states: "Although this Standard use
terms 'other comprehensive income', 'profit or loss' and 'total comprehensive income', an en
use other terms to describe the totals as long as the meaning is clear. For example, an entity
the term 'net income' to describe profit or loss." Also, IAS 1.57(b) states: "The descriptions us
the ordering of items or aggregation of similar items may be amended according to the natu
entity and its transactions, to provide information that is relevant to an understanding of the
financial position."

Term before 2007 revision of IAS 1 Term as amended by IAS 1 (2007)

balance sheet statement of financial position

cash flow statement statement of cash flows

income statement statement of comprehensive income (income s

ment is retained in case of a two-statement
approach)
 recognised in the income statement recognised in profit or loss

recognised [directly] in equity (only for recognised in other comprehensive income

OCI components)

recognised [directly] in equity (for recognised outside profit or loss (either in OCI
recognition both in OCI and equity) equity)

removed from equity and recognised reclassified from equity to profit or loss as a re
in profit or loss ('recycling') fication adjustment

Standard or/and Interpretation IFRSs

on the face of in

equity holders owners (exception for 'ordinary equity holders

balance sheet date end of the reporting period

reporting date end of the reporting period

after the balance sheet date after the reporting period

Related items

Standards

 IAS 1 — Presentation of Financial Statements

 IFRS Practice Statement 'Making Materiality Judgements'

 IFRS 18 — Presentation and Disclosure in Financial Statements

Projects

 Primary financial statements  Annual improvements — 2007-2009 cycle

 Annual improvements — 2008-2010 cycle  Annual improvements — 2009-2011 cycle

 Disclosure initiative — IAS 1 amendments  Classification of liabilities — Effective date

 IAS 1 — Disclosures about going concern

 Financial statement presentation — Other comprehensive income

 Financial statement presentation — Financial statements and comparatives

  Financial statement presentation — Comprehensive project  IAS 1 — Classification of lia

 Disclosure initiative — Materiality  Disclosure initiative — Principles of disclosure

 IAS 1 — Classification of debt with covenants as current or non-current

 Disclosure initiative — Accounting policies  IAS 1 — Items not added to the agenda

 Disclosure initiative — Overview

Other

 International Accounting Standards

Contact us About Legal Privacy Cookies FAQs

© 2025. See Legal for more information. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ("DTTL"), its global network of member
firms and their related entities. DTTL (also referred to as "Deloitte Global") and each of its member firms are legally separate and independent entities.
DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.