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Chapter 3 Presentation of Financial Statements (IAS 1)
3.3.3 Current assets are: ■ ■ ■ ■
assets expected to be realized or intended for sale or consumption in the entity’s normal operating cycle; assets held primarily for trading; assets expected to be realized within 12 months after the reporting date; and cash or cash equivalents, unless the assets are restricted in use for at least 12 months after the reporting period, or are to be used to settle a liability.
3.3.4 Current liabilities are: ■ ■ ■ ■
liabilities expected to be settled in the entity’s normal operating cycle; liabilities held primarily for trading; liabilities due to be settled within 12 months after the reporting date; and liabilities for which the entity does not have an unconditional right to defer settlement for at least 12 months after the reporting period.
3.3.5 Noncurrent assets and liabilities are expected to be settled more than 12 months after the reporting date.
3.3.6 The portion of noncurrent interest-bearing liabilities to be settled within 12 months after the reporting date can be classified as noncurrent liabilities if: ■ ■ ■
the original term is greater than 12 months; it is the intention to refinance or reschedule the obligation; or the agreement to refinance or reschedule the obligation is completed on or before the reporting date.
3.3.7 Other comprehensive income comprises items of income and expenses that are not recognized in profit or loss as permitted or required by other IFRSs. These include: ■ ■ ■ ■ ■
changes in revaluation surplus of fixed or intangible assets in terms of IAS 16 and IAS 38 (refer to chapters 10 and 13); actuarial gains and losses on defined benefit plans recognized in accordance with IAS 19 (refer to chapter 24); gains and losses arising from translating the financial statements of a foreign operation recognized in terms of IAS 21(refer to chapter 21); gains and losses on re-measuring available-for-sale financial assets in terms of IAS 39 (refer to chapter 17); and the effective portion of gains and losses on hedging instruments in a cash flow hedge in terms of IAS 39 (refer to chapter 17).
3.3.8 Total comprehensive income is the change in equity during a period resulting from transactions, other than those changes resulting from transactions with owners in their capacity as owners—that is, the sum of profit or loss for the period and other comprehensive income. 3.4
ACCOUNTING TREATMENT 3.4.1 Financial statements should provide information about an entity’s financial position, performance, and cash flows that is useful to a wide range of users for economic decision making.