Information to be presented either in the statement of financial position or in the notes

Information to be presented either in the statement of financial position or in the notes – Here is a list of items that a reporting entity can either decide to include in the financial position/balance sheet or in the notes. Neither is wrong, the financial statement should provide useful information as a whole. An entity shall disclose, either in the statement of financial position or in the notes, the following subclassifications of the line items presented:

  1. property, plant and equipment in classifications appropriate to the entity;
  2. trade and other receivables showing separately amounts due from related parties, amounts due from other parties, and receivables arising from accrued income not yet billed;
  3. inventories, showing separately amounts of inventories:
    1. held for sale in the ordinary course of business;
    2. in the process of production for such sale; and
    3. in the form of materials or supplies to be consumed in the production process or in the rendering of services.
  4. trade and other payables, showing separately amounts payable to trade suppliers, payable to related parties, deferred income and accruals;
  5. provisions for employee benefits and other provisions; and
  6. classes of equity, such as paid-in capital, share premium, retained earnings and items of income and expense that, as required by IFRS in summary this Standard, are recognised in other comprehensive income and presented separately in equity.

 

An entity with share capital shall disclose the following, either in the statement of financial position or in the notes:

  1. for each class of share capital: Information to be presented either in the statement of financial position or in the notes
    1. the number of shares authorised. Information to be presented either in the statement of financial position or in the notes
    2. the number of shares issued and fully paid, and issued but not fully paid. Information to be presented either in the statement of financial position or in the notes
    3. par value per share or that the shares have no par value. Information to be presented either in the statement of financial position or in the notes
    4. a reconciliation of the number of shares outstanding at the beginning and at the end of the period. This reconciliation need not be presented for prior periods.
    5. the rights, preferences and restrictions attaching to that class including restrictions on the distribution of dividends and the repayment of capital.
    6. shares in the entity held by the entity or by its subsidiaries or associates. Information to be presented either in the statement of financial position or in the notes
    7. shares reserved for issue under options and contracts for the sale of shares, including the terms and amounts.
  2. a description of each reserve within equity.

An entity without share capital, such as a partnership or trust, shall disclose information equivalent to that required by each class of share capita (see (a) above), showing changes during the period in each category of equity, and the rights, preferences and restrictions attaching to each category of equity.

If, at the reporting date, an entity has a binding sale agreement for a major disposal of assets, or a group of assets and liabilities, the entity shall disclose the following information:

  1. a description of the asset(s) or the group of assets and liabilities; Information to be presented either in the statement of financial position or in the notes
  2. a description of the facts and circumstances of the sale or plan; and
  3. the carrying amount of the assets or, if the disposal involves a group of assets and liabilities, the carrying amounts of those assets and liabilities.

An entity shall present additional line items, headings and subtotals in the statement of financial position when such presentation is relevant to an understanding of the entity’s financial position.

A class of property, plant and equipment (PPE)is a grouping of assets of a similar nature and use in an entity’s operations. Judgment must be exercised to determine the subclassifications that are appropriate to a particular entity.

The following are examples of separate classes of PPE:

  1. vacant land on which the entity plans to construct its head office; Information to be presented either in the statement of financial position or in the notes
  2. land and buildings; 
  3. machinery; Information to be presented either in the statement of financial position or in the notes
  4. boats;
  5. aircraft;
  6. motor vehicles;
  7. furniture and fixtures; and
  8. office equipment.

Example – subclassifications of property, plant and equipment

Information to be presented either in the statement of financial position or in the notes

Alternatively, the entity may present in the statement of financial position the total amount of property, plant and equipment. In this case, information about each subclassification of property, plant and equipment is presented in the notes.

Example – presenting trade and other receivables

A group entity could present trade and other receivables of the group as follows:

Information to be presented either in the statement of financial position or in the notes

Alternatively, the group may present each of the line items presented in note 10 in its consolidated statement of financial position.

Example – presenting inventories

An entity could present inventories as follows:

Information to be presented either in the statement of financial position or in the notes

Alternatively, the entity may present a single line item for inventories in its  statement of financial position showing the total amount of inventories. In this case, information about each subclassification of inventories is presented in the notes.

Example – presenting trade and other payables

A group could present trade and other payables as follows:

Information to be presented either in the statement of financial position or in the notes

Alternatively, the group may present each of the line items presented in note 11 in its consolidated statement of financial position.

Example – presenting provisions

An entity could present provisions as follows:

Information to be presented either in the statement of financial position or in the notes

Alternatively, the entity may present each of the line items presented in note 12 in its statement of financial position.

Example – presenting equity

A group presents its equity as follows:

Example – presentation for an entity with share capital

The share capital of an entity could be presented as follows:

Example – presentation for an entity without share capital

The ‘capital’ of an entity without share capital could be presented as follows:

Example: Binding sale agreement

A group that has entered into a binding sale agreement to dispose of a group of its assets at a future date could make the following disclosures:

Information to be presented either in the statement of financial position or in the notes

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