IAS 1 - part 2

In this lesson

1. 0:00 Statement of Changes in Equity Overview
2. 0:49 Going Concern Assumption Explained
3. 1:41 Accruals Basis and Consistency Principles
4. 2:25 Materiality, Aggregation and Offsetting Rules
5. 3:38 Disclosures and Compliance Requirements

About this lesson

The statement of changes in equity tracks all movements in equity during the period, including opening balances, the effects of accounting policy changes, dividends paid, share issues, transfers between reserves, and closing balances. You'll also explore the going concern assumption—how management assesses whether an entity will continue operating for the foreseeable future and what indicators of uncertainty to look for, such as cash shortages, extended payables periods, or significant debt repayments. The lesson covers essential presentation principles including the accruals basis of accounting, consistency, materiality and aggregation, offsetting rules, and the requirement for comparative information. Finally, you'll learn what disclosures must accompany your financial statements, including confirmation of IFRS compliance, accounting policies used, and key sources of estimation uncertainty. This content is core to Financial Reporting and Strategic Business Reporting papers and is essential for producing compliant financial statements in your exams.

Duration: 4m