Presentation of Financial Statements

International Accounting Standards 1 (IAS 1), Presentation of Financial Statements, is applicable to all general‐purpose financial statements prepared and presented in accordance with international financial reporting standards (IFRS). Financial statements are a central feature of financial reporting. The elements of financial statements are the broad classifications and groupings which convey the substantive financial effects of transactions and events on the reporting entity. IAS 1 prescribes the basis for presentation of general‐purpose financial statements to ensure comparability both with the entity's financial statements of previous periods and with the financial statements of other entities. The illustrative financial statements illustrate the presentation of comprehensive income in two separate statements, the statement of profit or loss presented separately, followed by the statement of comprehensive income beginning with profit or loss and then reporting items of other comprehensive income. All expenses in the statement of profit or loss are classified by nature.