1. Financial Statement Presentation Sections 3-8, 10, 30, 32 and 33
The IFRS for SMEs
Financial Statement Presentation
Sections 3-8, 10, 30, 32 and 33
By: Olonje
11/11/2018

2. Overview:
Section 3- Specifies general requirements for financial statement presentation
Section 4-8- Cover the presentation of each component of financial statement
Section 10- Covers accounting policies, estimates and errors
Section 30- Covers foreign currency translation
Section 32- Covers events after the end of the reporting period
Section 33- Covers related party disclosures
The main principles in these sections are generally the same as full IFRSs
By: Olonje
11/11/2018

3. Financial Statement Presentation
Section 3
Financial Statement Presentation
By: Olonje
11/11/2018

4. Section 3 - Scope Explains: Fair presentation of Financial Statements
What compliance with the IFRS for SMEs requires
What is a complete set of financial statements
By: Olonje
11/11/2018

5. Fair Presentation
Fair presentation is the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognitions criteria for assets, liabilities, income and expenses
The application of the IFRS for SMEs with additional disclosure when necessary is presumed to result in financial statements that achieve a fair presentation of the financial position, financial performance and cash flows of an entity that is not publicly accountable
By: Olonje
11/11/2018

6. Compliance
An entity whose financial statements comply with the IFRS for SMEs must make an explicit and unreserved statement of such compliance in the notes.
Financial statements shall not be described as complying with the IFRS for SMEs unless they comply with all the requirements of the IFRS for SMEs.
By: Olonje
11/11/2018

7. Compliance Statement Example:
An entity prepares its consolidated financial statements for the year ended 31 December 20XX in accordance with the IFRS for SMEs.
Basis of preparation and accounting policies
The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) for Small and Medium-Sized Entities issued by the International Accounting Standards Board.
By: Olonje
11/11/2018

8. Going Concern
An entity is a going concern unless management either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so.
When preparing financial statements, the management of an entity must make an assessment of the entity’s ability to continue as a going concern.
By: Olonje
11/11/2018

9. Going Concern Disclosures
Disclose material uncertainties related to events or conditions that cast significant doubt upon the entity’s ability to continue as a going concern.
If financial statements are not prepared on a going concern basis disclose:
That fact
The basis of preparation
The reason why the entity is not regarded as a going concern.
By: Olonje
11/11/2018

10. Consistency of Presentation
Same presentation and classification each year unless:
Significant change in the nature of the entity’s operations or review of presentation and find another presentation or classification more appropriate ( i.e. reliable and more relevant) or
The IFRS for SMEs requires a change in presentation.
If changed, reclassify/restate comparative amounts unless reclassification is impracticable. On reclassification disclose;
Nature of reclassification
Amount of each item or class of items that is reclassified
The reason for the reclassification
By: Olonje
11/11/2018

11. Comparative Information
Disclose:
1 year’s comparative amounts
Comparative information for narrative and descriptive information when relevant to understanding current period’s financial statements.
By: Olonje
11/11/2018

12. Materiality and aggregation
Material if could;
Individually or collectively, influence economic decisions of users
Depends on size and nature of the omission or misstatement
Judged in the surrounding circumstances present separately
Each material class of similar items
Items of a dissimilar nature or function unless they are immaterial
By: Olonje
11/11/2018

13. Complete set of Financial Statements
Statement of Financial Position- Section 4
Either single statement of comprehensive income or two statements- an income statement and a Statement of comprehensive income- Section 5
Statement of changes in Equity- Section 6
Statement of Cash Flows – Section 7
Notes, comprising a summary f significant accounting policies and other explanatory information- Section 8
Present each with equal prominence
By: Olonje
11/11/2018

14. Optional alternative formats
Statement of income and retained earnings (instead of statement of comprehensive income (SOCI) and statement of changes in equity) if only changes in equity arise from:
Profit or loss
Payment of dividends
Corrections of prior periods errors; and
Changes in accounting policies
Income statement (instead of SOCI) if no items of other comprehensive income
By: Olonje
11/11/2018

15. Other Comprehensive Income
The only other comprehensive income (OCI) items are:
Some foreign exchange gains and losses ( see section 30)
Some changes in fair values of hedging instruments (see section 12)
Some actuarial gains and losses ( see section 28)
By: Olonje
11/11/2018

16. Identification
Clearly identify each of the financial statements and notes and distinguish them from other information in the same document
Display prominently ( and repeat when necessary)
Name
Individual or group financial statements
Presentation currency and level of rounding
Reporting date
By: Olonje
11/11/2018