Fair presentation of position, performance and cash flows

Learning objectives

• Explain what fair presentation covers and why applying the Standards, with additional disclosure when necessary, is presumed to achieve it.L1
• Determine, from a case, whether additional disclosures are needed to achieve a fair presentation.L1, L2

Normative references

• IAS 1 §15Financial statements shall present fairly the financial position, financial performance and cash flows of an entity; fair presentation requires the faithful representation of transactions in accordance with the definitions and recognition criteria in the Conceptual Framework, and the application of IFRS Accounting Standards, with additional disclosure when necessary, is presumed to result in a fair presentation.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• Iris SA's financial statements apply all IFRS standards, but without further information do not convey a particular transaction that weighs on the entity's position (case facts). What does IAS 1 provide so that the financial statements fairly present the entity's position?L2