IAS 1, 30 & 32 on Disclosure
SUMMARY
International Accounting Standards (IAS 1, 30, and 32)

IAS 1:  Presentation of Financial Statements

Introduction IAS 1 Presentation of Financial Statements was issued in December 2003 and is applicable for annual periods beginning on or after 1 January 2005. IAS 1 prescribes the basis for presentation of general purpose financial statements, to ensure comparability both with the entity's financial statements of previous periods and with the financial statements of other entities. IAS 1 does not apply to interim financial statements prepared in accordance with IAS 34 Interim Financial Reporting.

Summary of IAS 1

A complete set of financial statements comprises a balance sheet; an income statement; a statement of changes in equity; a cash flow statement; and notes, comprising a summary of significant accounting policies and other explanatory notes. Financial statements present fairly the financial position, financial performance and cash flows of an entity. Fair presentation requires faithful representation of the effects of transactions, events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out the Framework for the Preparation and Presentation of Financial Statements. The application of IFRSs (i.e. Standards and Interpretations), with additional disclosure when necessary, is presumed to result in financial statements that achieve a fair presentation. An entity makes an explicit and unreserved statement of compliance with IFRSs in the notes to the financial statements. Such a statement is only made on compliance with all the requirement of IFRSs. A departure from IFRSs is acceptable only in the extremely rare circumstances in which compliance with IFRSs conflicts with providing information useful to suers in making economic decisions. IAS 1 specifies the disclosures required when an entity departs from a requirement of an IFRS. IAS 1 specifies the following about the preparation and presentation of financial statements: Financial statements are prepared on a going concern basis unless management either intends to liquidate the entity or to cease trading, or has no realistic alternative but to do so. Financial statements, except for cash flow information, are prepared using the accrual basis of accounting. The presentation and classification of items in the financial statements are usually retained from one period to the next. Each material class of similar items is presented separately. Dissimilar items are presented separately unless they are immaterial. Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions of users taken on the basis of the financial statements. Assets and liabilities, and income and expenses, are not offset unless required or permitted by an IFRS. Assets and liabilities should be classified as current, as non-current, or else presented broadly in their order of liquidity. Comparative information is disclosed for all amounts reported in the financial statements, unless an IFRS requires or permits otherwise. Financial statements are presented at least annually. IAS 1 specifies the minimum line item disclosures on the face of, or in the notes to, the balance sheet, the income statement, and the statement of changes in equity. Current and non-current assets, and current and non-current liabilities are presented as separate classifications on the face of the balance sheet. IAS 1 specifies disclosures about information to be presented in the financial statements, including judgments, key sources of estimation uncertainty, and accounting policies.

IAS 30: Disclosures in the Financial Statements of Banks and Similar Financial Institutions

Introduction IAS 30 Disclosures in the Financial Statements of Banks and Similar Financial Institutions is applicable in the financial statements of banks and similar financial institutions for periods beginning on or after 1 January 1991.

Summary of IAS 30

A bank presents an income statement that groups income and expenses by nature and discloses the amounts of the principal types of income and expenses. Disclosures of specific items of income and expenses are prescribed. Income and expense items are not offset except: those relating to hedges; assets and liabilities that have been offset in accordance with IAS 32 Financial Instruments: Disclosure and Presentation A bank presents a balance sheet that groups assets and liabilities by nature and lists them in an order that reflects their relative liquidity. Disclosures of specific assets and liabilities are prescribed. Disclosure is required of various kinds of contingencies and commitments, including off-balance-sheet items. Disclosure is required of information relating to losses on loans and advances. Other disclosure requirements include: Maturities of assets and liabilities based on the remaining period at the balance sheet date to the contractual maturity date; Concentrations of assets, liabilities, and off-balance-sheet items (by geographical area, customer or industry groups, or other aspects of risk); Significant net foreign currency exposures;  Secured liabilities and nature and amount of assets pledged as security; Related party transactions.

IAS 32: Financial Instruments: Disclosure and Presentation

Introduction IAS 32 Financial Instruments: Disclosure and Presentation was issued in December 2003 and is applicable for annual periods beginning on or after 1 January 2005. IAS 32 is intended to enhance financial statement users' understanding of the significance of financial instruments to an entity's financial position, performance and cash flows. It prescribes requirements for the presentation of financial instruments and identifies information that should be disclosed about them.

Summary of IAS 32

IAS 32 requires disclosure about factors that affect the amount, timing and certainty of an entity's future cash flows relating to financial instruments and the accounting policies applied to those instruments. It also requires disclosure about the nature and extent of an entity's use of financial instruments, specifically: Their terms and conditions; Exposure to interest rate risk; Exposure to credit risk.

(Adapted from International Accounting Standards Board, Web Summaries, IAS 1-Presentation of Financial Statements, http://www.iasb.org/standards/summaries.asp ) NOTE:  Additional IAS requirements included in the second year of the Award are intended to improve the criteria and further raise the standards of financial transparency in the microfinance industry. The particular paragraphs that are pertinent for the Award's compliance review are indicated in the table below. Standard Paragraph IAS 1 8,14,17,23,25,27,29,32,33,36,49,68-97,86,88,102,103,126. IAS30 8-a,b,c, 10-12, 16, 18-19, 30, 34, 40, 53, 57. IAS32 62-63, 67-b, 76.