How many years of comparative financial statements are required under current GAAP?
How many years of comparative financial statements are required under current GAAP?
Homework Answers
IAS 1 requires that comparative information to be disclosed in respect of the previous period for all amounts reported in the financial statements, both on the face of the financial statements and in the notes, unless another Standard requires otherwise. Comparative information is provided for narrative and descriptive where it is relevant to understanding the financial statements of the current period. [IAS 1.38]
An entity is required to present at least two of each of the following primary financial statements: [IAS 1.38A]
- statement of financial position*
- statement of profit or loss and other comprehensive income
- separate statements of profit or loss (where presented)
- statement of cash flows
- statement of changes in equity
- related notes for each of the above items.
* A third statement of financial position is required to be presented if the entity retrospectively applies an accounting policy, restates items, or reclassifies items, and those adjustments had a material effect on the information in the statement of financial position at the beginning of the comparative period. [IAS 1.40A]
Where comparative amounts are changed or reclassified, various disclosures are required. [IAS 1.41]
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How many years of comparative financial statements are required
under current GAAP?
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