Page 131 - F1 Integrated Workbook STUDENT 2018

Introduction to Single Entity Accounts including Statement of
Cashflows

2.3 Accruals basis

IAS 1 Presentation of Financial Statements requires entities to prepare their financial
statements (except for the cash flow information) using the accruals basis of
accounting. This means that transactions are recorded in the accounting period to
which they relate regardless of whether or not cash has been received or not.

2.4 Consistency

Presentation and classification of items should be consistent from one period to the
next.

2.5 Materiality and aggregation

Each material class of similar items should be presented separately in the financial
statements. Immaterial amounts should be aggregated with amounts of a similar
nature and need not be disclosed separately.

2.6 Comparative information

Comparative information should be disclosed in respect of the previous period for all
amounts reported in the financial statements unless an IFRS requires or allows
otherwise.

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