AASB 101 - Presentation of Financial Statements - October 2006
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- The notes shall:
(a) present information about the basis of preparation of the financial report and the specific accounting policies used in accordance with paragraphs 108-115;
(b) disclose the information required by Australian Accounting Standards that is not presented on the face of the balance sheet, income statement, statement of changes in equity or cash flow statement; and
(c) provide additional information that is not presented on the face of the balance sheet, income statement, statement of changes in equity or cash flow statement, but is relevant to an understanding of any of them.
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Notes shall, as far as practicable, be presented in a systematic manner. Each item on the face of the balance sheet, income statement, statement of changes in equity and cash flow statement shall be cross referenced to any related information in the notes.
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Notes are normally presented in the following order, which assists users in understanding the financial report and comparing them with financial reports of other entities:
(a) a statement of compliance with IFRSs (see paragraph 14);
(b) a summary of significant accounting policies applied (see paragraph 108);
(c) supporting information for items presented on the face of the balance sheet, income statement, statement of changes in equity and cash flow statement, in the order in which each statement and each line item is presented; and
(d) other disclosures, including:
(i) contingent liabilities (see AASB 137) and unrecognised contractual commitments; and
(ii) non-financial disclosures, for example the entity’s financial risk management objectives and policies (see AASB 7).
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In some circumstances, it may be necessary or desirable to vary the ordering of specific items within the notes. For example, information on changes in fair value recognised in profit or loss may be combined with information on maturities of financial instruments, although the former disclosures relate to the income statement and the latter relate to the balance sheet. Nevertheless, a systematic structure for the notes is retained as far as practicable.
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Notes providing information about the basis of preparation of the financial report and specific accounting policies may be presented as a separate component of the financial report.