IAS

• prescribes the basis for the presentation of general purpose financial statements, to ensure comparability both with the entity's financial statements of previous periods and with financial statements of other entities.
• it sets out overall requirements for the presentation of financial statements, guidelines for their structure and minimum requirements for their content.

• to provide useful information to a wide range of users in making economic decisions.
• To meet that objective, finanial statements provide information about:assets, liabilities, equity, income and expenses, contributions by and distribution to owners, cash flows

• statement of comprehensive income
• statement of financial position
• statement of changes in equity
• statement of cash flow
• notes comprising summary of significant accounting policies and other explanatory information

• financial statement must present fairly the financial position, financial performance and cash flows of an entity. Compliance with IFRSs is presumed to result in fair presentation. Companies must state that their financial statements comply with IFRS.
• Directors must assess whether or not it is applicable for the company to prepare financial statements on the going concern basis.
• Companies must use the accruals basis in preparing the financial statements.
• Each material class of similar items must be presented separately.
• Related assets and liabilities must not be offset.
• Comparative information must be presented.
• Financial statements must be presented annually.
• Presentation and classification must be consistent.
• The Statement of Financial Position must show separately current and non-current assets and liabilities.

• cash
• cash equivalent
• assets held for collection, sale or consumption within the entity's normal operating cycle OR
• assets held for trading within the next 12 months (inventories)

• those to be settled within the entity's normal operating cycle or due within 12 months; OR
• those held for trading; OR
• those for which the entity does not have an unconditional right to defer payment beyond 12 months. All are liabilities are non-current.

• a single statement of comprehensive income; OR
• two separate statements, being one income statement and one statement of comprehensive income

• All companies preparing financial statements using IAS must prepare a statement of cash flows.
• The objective of IAS7 is to require the presentation of information about the historical changes in cash and cash equivalents of an entity by means of a statement of cash flows, which classifies cash flows during the period according to operating, investing an financing activities.

• Operating activities - the main revenue producing activities of a company, including payments of interest and tax.
• Investing activities - the acquisition and disposal of long term assets and other investments.
• Financing activities - receipts from the issue of shares, changes in long term liabilities and dividend payments.

explains how companies should select their accounting policies. it also covers how changes in accounting policies, changes in accounting estimates and correcting prior period errors should be dealt with in a set of financial statements - including when changes need to be made to comparative figures, and setting out what disclosures should be made in different circumstances.

• provides guidance on how to calculate earnings per share. EPS is a key accounting ratio, as it is also used to calculate the price earnings ratio which is used extensively by financial analysts.
• The formula is earnings/shares.
• Earnings is profit after tax, preference dividends and amounts due to the non-controlling interest.
• Share is the weighted average number of ordinary shares in issue during the year.

• PPE are tangible assets that:
• are held for use in the production or supply of goods and services, for rental to others, or for administrative purposes
• are expected to be used during more than accounting one period

When it is probable that future economic benefits will flow to the entity.When the cost of the asset can be measured reliably.PPE is initially measured at cost. Subsequently an entity has a choice of two valuation methods - the cost model or the revaluation model.

Cost includes any expenditure required to being the asset into use.

Under the cost model, an item of PPE will be carried at its original cost less accumulated depreciation and accumulated impairment losses.

Under the revaluation model, an item of PPE will be carried at its fair value at the date of the revaluation less any subsequent accumulated depreciation and any subsequent impairment losses.

Other than freehold land, which is deemed to have an unlimited useful life, all other assets having a limited useful life should be depreciated in a manner which best reflects the consumption of economic benefits.

• Explains how in some circumstances, interest charges can be capitalised.
• Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset form part of the cost of the asset. Other borrowing costs are recognised as an expense.
• A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.