Presentation of financial statements
This is a summary of IAS 1 Presentation of Financial Statements starting with a pictured overview and then a more detailed narrative touching the most important reporting issues for this subject.
IAS 1 Basis of preparation of financial statements
IFRS Reference: IAS 1
Financial statements are prepared on a going concern basis, unless management intends or has no realistic alternative other than to liquidate the entity or to stop trading.
If management concludes that the entity is a going concern, but there are nonetheless material uncertainties that cast significant doubt on the entity’s ability to continue as a going concern, then the entity discloses those uncertainties.
In carrying out its assessment of going concern, management considers all available information about the future for at least, but not limited to, 12 months from the reporting date. This assessment determines the basis of preparation of the financial statements.
If the entity is not a going concern and the financial statements are being prepared in accordance with IFRS Standards, then in our view there is no general dispensation from their measurement, recognition and disclosure requirements.