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Introduction

A revised IAS 1 Presentation of financial statements was issued inSeptember 2007. The main changes to the previous version are as follows:


• Changes in terminology, notably ‘balance sheet’ to statement of financial position.

• Single statement of comprehensive income. This can be split into two (income statement to profit for the year and ‘other comprehensive income’).

• Tax effects of each item of comprehensive income must be shown.

• Dividends cannot be shown in profit or loss (income statement).

• Statement of changes in equity for owner changes in equity. Non-owner changes must be shown in the statement of comprehensive income.

ACCA operates a six month rule in its examinations based on issue date, whereby accounting standards will not be examined until six months have passed from their date of issue. Therefore the revised IAS 1 falls to be examined from the June 2008 examinations.


Most important terminology changes


Old standard / New standard

1. Balance sheet / Statement of financial position
2. Income statement / Statement of comprehensive income (one statement) or Income statement (separate) and Statement of comprehensive income (two statements)
3. Statement of recognised income and expense / “Other comprehensive income” section of new comprehensive income statement. “Other comprehensive income” for short.
4. Cash flow statement / Statement of cash flows
5. Recognised in the income statement / Recognised in profit or loss (Note or not and.)

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Other terminology/wording changes

Old standard New standard

1. ‘On the face of’ ‘in’
2. ‘Reporting date’ ‘end of the reporting period’
3. ‘Each balance sheet date’ ‘the end of each reporting period’
4. ‘Equity holders’ ‘owners’
5. ‘Removed from equity and recognised in profit or loss’ (recycling) reclassified from equity to profit or loss as a reclassification adjustment’
6. ‘Standard or interpretation’ ‘IFRS’

Changes to titles of IFRS

Old title New title

• IAS 7 Cash flow statements IAS 7 Statement of cash flows
• IAS 10 Events after the balance sheet date IAS 10 Events after the reporting period

cacaread

http://www.bpp.com/acca/study-materials/ for selecting your exam paper and download and print the IAS 1 update. Very useful and free.

midastouch

Hi Cacareead,

I went on your link below but i couln't find the IAS 1 Update.

I clicked on F3 and materials but there is no update on IAS 1.

Are you sure it is the right section?

Thank you to let me know.