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Final Accounts for Companies as Per Ias1

In: Business and Management

Submitted By kdiya
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4.1 IAS 1 Presentation of financial statements

IAS 1 identifies three fundamental assumptions that must be taken into account when preparing accounts:

Going concern



'IAS 1 Presentation of financial statements was published in 1997 and revised in 2004.

IAS 1 gives details about the general requirements and what it says about accounting policies and fundamental assumptions and on the format and content of financial statements

4.1.1 Objectives and scope

The main objective of IAS 1 is:

to prescribe 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.'

IAS 1 applies to all general purpose financial statements prepared and presented in accordance with
International Financial Reporting Standards (IFRSs).

4.1.2 Purpose of Financial Statements

The objective of financial statements is to provide information about the financial position, performance and cash flows of an entity that is useful to a wide range of users in making economic decisions. They also show the result of management's stewardship of the resources entrusted to it.

In order to fulfill this objective, financial statements must provide information about the following aspects an entity's results.

• Assets • Liabilities
• Equity
• Income and expenses (including gains and losses)
• Other changes in equity • Cash flows

Along with other information in the notes and related documents, this information will assist users in predicting the entity future cash flows.
According to IAS 1, a complete set of financial statements includes the following components.

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