This standard requires particular disclosures on the face of the balance sheet, income statement and statement of changes in equity and requires disclosure of other line items either on the face of those statements or in the notes. IAS 7
Cash-flow statements
sets out requirements for the presentation of a cash-flow statement.
43
This standard sometimes uses the term ‘disclosure’ in a broad sense, encompassing items presented on the face of the balance sheet, income statement, statement of changes in equity and cash-flow statement, as well as in the notes. Disclosures are also required by other standards and interpretations. Unless specified to the contrary elsewhere in this standard, or in another standard or interpretation, such disclosures are made either on the face of the balance sheet, income statement, statement of changes in equity or cash-flow statement (whichever is relevant), or in the notes.
Identification of the financial statements
44
The financial statements shall be identified clearly and distinguished from other information in the same published document.
45
IFRSs apply only to financial statements, and not to other information presented in an annual report or other document. Therefore, it is important that users can distinguish information that is prepared using IFRSs from other information that may be useful to users but is not the subject of those requirements.
46
Each component of the financial statements shall be identified clearly. In addition, the following information shall be displayed prominently, and repeated when it is necessary for a proper understanding of the information presented:
(a) the name of the reporting entity or other means of identification, and any change in that information from the preceding balance sheet date;
(b) whether the financial statements cover the individual entity or a group of entities;
(c) the balance sheet date or the period covered by the financial statements, whichever is appropriate to that component of the financial statements;
(d) the presentation currency, as defined in IAS 21
The effects of changes in foreign exchange rates
; and
(e) the level of rounding used in presenting amounts in the financial statements.
47
The requirements in paragraph 46 are normally met by presenting page headings and abbreviated column headings on each page of the financial statements. Judgement is required in determining the best way of presenting such information. For example, when the financial statements are presented electronically, separate pages are not always used; the above items are then presented frequently enough to ensure a proper understanding of the information included in the financial statements.
48
Financial statements are often made more understandable by presenting information in thousands or millions of units of the presentation currency. This is acceptable as long as the level of rounding in presentation is disclosed and material information is not omitted.
Reporting period
49
Financial statements shall be presented at least annually. When an entity's balance sheet date changes and the annual financial statements are presented for a period longer or shorter than one year, an entity shall disclose, in addition to the period covered by the financial statements:
(a) the reason for using a longer or shorter period; and
(b) the fact that comparative amounts for the income statement, statement of changes in equity, cash-flow statement and related notes are not entirely comparable.
50
Normally, financial statements are consistently prepared covering a one-year period. However, for practical reasons, some entities prefer to report, for example, for a 52-week period. This standard does not preclude this practice, because the resulting financial statements are unlikely to be materially different from those that would be presented for one year.
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