Basic rules for preparing financial statements
In addition to the following requirements for fair presentation, materiality, netting of reporting items and the need for comparative information, IFRS (IAS) 1 specifies that when preparing financial statements must be guided by assumptions about the continuity of the activity, the sequence of presentation and accounting by accrual method.
IAS (IAS) 1 pays particular attention to disclosing a concept such as "bona fide representation" financial statements. A fair presentation requires the truth in disclosing the impact of transactions and other events, provided that such disclosure is made in full accordance with the definitions of assets and liabilities, income and expenses and the criteria for their recognition as set forth in the IFRS Concept (IFRS Preparation and Preparation of Financial Statements).
It is assumed that in fact under any circumstances, compliance with International Financial Reporting Standards (if necessary with additional disclosure) leads to a good faith presentation.
A good faith view also requires the organization:
o To form an accounting policy in accordance with the requirements of the Special Standard IFRS (45) 8 "Accounting Policies, Changes in Estimates and Errors" and consistently apply it;
o provide information, including an accounting policy, in a form that allows the generation of reliable, comparable and intelligible information;
o Provide additional disclosures where compliance with relevant IFRS requirements is not sufficient to enable users to understand the impact of specific transactions, other events and conditions on the financial position and financial performance of the organization.
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Acceptable exceptions to the generally established fair presentation requirements are defined in clauses 7 and 18 of IAS 1. So, in those "extremely rare cases", when the management of an organization comes to the conclusion that compliance with any requirement of a separate Standard or Interpretation may be so misleading that there is a conflict with the objectives of the financial statements, the organization must refuse to apply the relevant requirement if such a refusal is required or not prohibited.
In this case, the obligation to disclose the following information is established:
o in the declaration (statement) of the management of the organization that the financial statements faithfully presents the financial position, financial results and cash flow, and that the organization has met the requirements of standards and interpretations, except that it has receded from a specific requirement in order to ensure a fair presentation;
o information on the name of the Standard or Interpretation from which the organization was forced to withdraw, the nature of such a derogation, the rationale for its cause, the accounting treatment applied by the organization, and the financial impact of the deviation on each item of the financial statements.
United States standards are recognized as "reliable and complete" such accounting reporting, which is formed based on the rules established by regulatory enactments on accounting (paragraph 6 PBU 4/99).
It is also allowed to deviate from the established standards in order to ensure the reliability of financial statements. The relevant provisions are:
o in art. 13 of the Accounting Law: "The explanatory note should disclose the facts of non-application of accounting rules in cases when they do not allow to reliably assess the property state and financial performance of the organization, with the appropriate justification";
o in clause 6 of PBU 4/99: If in the preparation of financial statements the application of the rules of this Regulation does not allow to form a reliable and complete picture of the financial position of the organization, the financial results of its activities and changes in its financial position, exceptional cases (for example, the nationalization of property) may allow a deviation from these rules & quot ;;
o in paragraph 37 of PBU 4/99: "In the event of deviation from the rules ... significant derogations should be disclosed in the notes to the Balance Sheet and Profit and Loss Statement together with the reasons for these deviations and the result, which these derogations have had on the understanding of the state of the financial situation of the organization, the reflection of the financial results of all activities and changes in its financial position. "
So, IFRS in more detail than our standards, describe the parameters of information disclosure, characterizing deviation from the requirements of standards, but in general the requirements for the need to disclose such information in IFRS and RAS are similar.
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In addition, it is noteworthy that RAS, unlike IFRS, gives an example of a situation in which deviation from established rules is recognized as permissible (nationalization of property), whereas international standards qualify such situations exclusively through the term extremely rare cases ", transferring the right to identify them in the scope of professional judgment of persons responsible for the preparation and presentation of financial statements.
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