The objective of FRS 1 is to prescribe the basis of presentation of general purpose financial statements, to ensure comparability of entity’s financial statements with previous periods and with other entities’ financial statements.
Below is a summary of the overall considerations for the presentation of financial statements.
a) Fair presentation and compliance with FRS;
b) Going concern;
c) Accrual basis of accounting:
d) Consistency of presentation
e) Materiality and aggregation
g) Comparative information
FRS 1 also specifies the minimum line item disclosure required on the face of the balance sheet, income statement, statement of changes in equity and notes to the financial statements.
FRS 7 sets out the requirements for presentation of a cash flow statement.
FRS 1 also specifies that entities discloses information that is presented in the financial statements such as the accounting policies, judgements and key sources of estimation uncertainty at the balance sheet date.
Source – CPA Singapore Wire Apr 2009