Section 3 – Disclosure Checklist

Section 3 – Compliance with FRS 102

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Compliance with FRS 102 Presentation

1.      

The financial statements shall give a true and fair view of the assets, liabilities, financial position, financial performance and, when required to be presented, cash flows of an entity

3.2

2.      

An entity whose financial statements comply with this FRS shall make an explicit and unreserved statement of such compliance in the notes.

3.3

3.      

Financial statements shall not be described as complying with this FRS unless they comply with all the requirements of this FRS.

3.3

4.      

When an entity departs from a requirement of this FRS in accordance with paragraph 3.4 as to comply with the FRS would result in an inconsistency as it would not show a true and fair view, or from a requirement of applicable legislation, it shall disclose the following:

a)    that management has concluded that the financial statements present fairly the entity’s financial position, financial performance and cash flows;

b)    that it has complied with this FRS or applicable legislation, except that it has departed from a particular requirement of this FRS or applicable legislation to the extent necessary to give a true and fair view; and

c)    the nature of the departure, including the treatment that this FRS or applicable legislation would require, the reason why that treatment would be so misleading in the circumstances that it would conflict with the objective of financial statements set out in Section 2, and the treatment adopted.

3.5

5.      

When an entity has departed from a requirement of this FRS or applicable legislation in a prior period, and that departure affects the amounts recognised in the financial statements for the current period, it shall make the disclosures set out in paragraph 3.5(c).

3.6

6.      

When management is aware, in making its assessment, of material uncertainties related to events or conditions that cast significant doubt upon the entity’s ability to continue as a going concern, the entity shall disclose those uncertainties. When an entity does not prepare financial statements on a going concern basis, it shall disclose that fact, together with the basis on which it prepared the financial statements and the reason why the entity is not regarded as a going concern.

3.9

 Frequency of Reporting

7.      

An entity shall present a complete set of financial statements (including comparative information as set out in paragraph 3.14) at least annually.  When the end of an entity’s reporting period changes and the annual financial statements are presented for a period longer or shorter than one year, the entity shall disclose the following:

a)    that fact;

b)    the reason for using a longer or shorter period; and

c)    the fact that comparative amounts presented in the financial            statements (including the related notes) are not entirely                    comparable

3.10

 Consistency of Presentation

8.      

When the presentation or classification of items in the financial statements is changed, an entity shall reclassify comparative amounts unless the reclassification is impracticable. When comparative amounts are reclassified, an entity shall disclose the following:

a)    the nature of the reclassification;

b)    the amount of each item or class of items that is reclassified;            and

c)    the reason for the reclassification.

3.12

9.      

If it is impracticable to reclassify comparative amounts, an entity shall disclose why reclassification was not practicable.

3.13

 Comparative Information

10.   

Except when this FRS permits or requires otherwise, an entity shall present comparative information in respect of the preceding period for all amounts presented in the current period’s financial statements.  An entity shall include comparative information for narrative and descriptive information when it is relevant to an understanding of the current period’s financial statements.

3.14

 Materiality and aggregation

11.   

An entity shall present separately each material class of similar items.  An entity shall present separately items of a dissimilar nature or function unless they are immaterial.

3.15

 Complete set of Financial Statements

12.   

A complete set of financial statements of an entity shall include all of the following:

a)    a statement of financial position as at the reporting date;

b)    either:

 i. a single statement of comprehensive income for the reporting period displaying all items of income and expense recognised during the period including those items recognised in determining profit or loss (which is a subtotal in the statement of comprehensive income) and items of other comprehensive  income;  or

 ii. a separate income statement and a separate statement of comprehensive income. If an entity chooses to present both an income statement and a statement of comprehensive income, the statement of comprehensive income begins with profit or loss and  then displays the items of  other comprehensive income;

c)    a statement of changes in equity for the reporting period;

d)    a statement of cash flows for the reporting period; and

e)    notes, comprising a summary of significant accounting policies        and other explanatory information.

3.17

13.   

If the only changes to equity during the periods for which financial statements are presented arise from profit or loss, payment of dividends, corrections of prior period errors, and changes in accounting policy, the entity may present a single statement of income and retained earnings in place of the statement of comprehensive income and statement of changes in equity (see paragraph 6.4.

3.18

14.   

If an entity has no items of other comprehensive income in any of the periods for which financial statements are presented, it may present only an income statement, or it may present a statement of comprehensive income in which the ‘bottom line’ is labelled ‘profit or loss’.

3.19

15.   

In a complete set of financial statements, an entity shall present each financial statement with equal prominence.

3.21

Identification of Financial Statements

16.   

An entity shall clearly identify each of the financial statements and the notes and distinguish them from other information in the same document. In addition, an entity shall display the following information prominently, and repeat it when necessary for an understanding of the information presented:

a)    the name of the reporting entity and any change in its name            since the end of the preceding reporting period;

b)    whether the financial statements cover the individual entity or a        group of entities;

c)    the date of the end of the reporting period and the period                covered by the financial statements;

d)    the presentation currency, as defined in Section 30 Foreign            Currency Translation; and

e)    the level of rounding, if any, used in presenting amounts in the financial statements.

3.23

17.   

An entity shall disclose the following in the notes:

a)    the legal form of the entity, its country of incorporation and the        address of its registered office (or principal place of business,          if different from the registered office); and

b)    a description of the nature of the entity’s operations and its              principal activities, unless this is disclosed in the business                review (or similar statement) accompanying the financial                  statements.

3.24

18.   

This FRS does not address presentation of interim financial reports. An entity that prepares such reports shall describe the basis for preparing and presenting the information (refer to FRS 104).

3.25