What does the IAS say about presentation of financial statements?

What does the IAS say about presentation of financial statements?

• A. They must show earnings per share only
• B. They should disclose only assets
• C. They shall present fairly the financial position, financial performance and cash flows of an entity
• D. They should present cash flows only

Answer: (C)

Under IAS 1, financial statements must present fairly the financial position, financial performance and cash flows of an entity. “Present fairly” means faithful representation in accordance with IFRS, free from material misstatement, and with all material information about assets, liabilities, equity, income, expenses, and cash flows included. This is a broad, complete view, not a narrow focus on just assets or only cash flows, and it sits alongside requirements for notes, comparatives, and the accrual basis.

Under IAS 1, financial statements must present fairly the financial position, financial performance and cash flows of an entity. “Present fairly” means faithful representation in accordance with IFRS, free from material misstatement, and with all material information about assets, liabilities, equity, income, expenses, and cash flows included. This is a broad, complete view, not a narrow focus on just assets or only cash flows, and it sits alongside requirements for notes, comparatives, and the accrual basis.