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Presentation and Disclosure Requirements of Financial Statements – Revision
Balance Sheet

Disclosure Requirements of Share Capital

• Share capital classified under the following sub-heads, namely:
• Issued, subscribed and paid up capital, distinguishing in respect of each class between:-

(a) Shares allotted for consideration paid in cash;
(b) Shares allotted for consideration other than cash, showing separately shares issued against property and others (to be specified); and
(c) Shares allotted as bonus shares.
• If the share capital is divided into different classes of shares, namely ordinary, preference etc. For each separate class of share capital, the following is disclosed:
a) Authorized Capital

• Number of Shares
• Nominal value

b) Paid up Capital

• Number of Shares
• Nominal value
• Reserves

• Reserves distinguishing between capital and revenue reserves
• Long Term Finances and Other Payables
Disclosure of financial instruments is covered under IAS 32 And 39. Detailed knowledge of these standards is not included in the course.
Finance Lease – Disclosures
• Lessee should in addition to meeting the requirements of IAS 32 Financial Instruments: Disclosure and Presentation, make following disclosures for finance leases:
a. For each class of asset, the net carrying amount at the balance sheet date (fixed assets schedule)
b. Future minimum lease payments at the balance sheet date, and their present value. In addition, an entity shall disclose the total future minimum lease payments and their present value, for each of the following periods:
Not later than one year, Later than one year and not later than five years
Later than five years
c. Contingent rents recognized as expense in the period.
d. The total of future minimum sublease payments expected to be received under a non-cancelable sublease at the balance sheet date.
e. A general description of the lessee’s material leasing arrangements including but not limited to, the following:
i. The basis on which contingent rent payable is determined;
ii. The existence and terms of renewal or purchase options and escalation clauses
iii. Restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and future leasing.
• In addition, the requirements for disclosure in accordance with IAS 16 (Property Plant and Equipment), IAS 36 (Impairment of Assets), IAS 40 (Investment Property) and IAS 41 (Agriculture) apply to lessees for assets leased under finance lease.
Dividends – IAS 10

• If an entity declares dividends to holders of equity instruments after the balance sheet date, the entity shall not recognize those dividends as a liability at the balance sheet date.
• If dividends are declared after the balance sheet date but before the financial statements are authorized for issue, the dividends are not recognized as a liability at the balance sheet date because theydo not meet the criteria of a  present obligation according to IAS 37. Such dividends are disclosed in the notes in accordance with IAS 1 Presentation of Financial Statements.

Disclosure Requirements – Fixed Assets

• A reconciliation of the carrying amount at the beginning and end of the period.
• Comparative figures are not required for reconciliation.
• The financial statements should also disclose.
• The existence and amount of restrictions on title, and property plant and equipment pledged as security.
• The accounting policy for estimated costs of restoring site of items of property plant and equipment
• The reconciliation of carrying amount at the beginning and at the end of the period.
• The amount of expenditures on account of account of property, plant and equipment in the course of construction
• The amount of commitments for the acquisition of property, plant ant equipment.

Disclosure Requirements – Intangibles
• The financial statements should also disclose:

• If an intangible asset is amortized over a period of more than 20 years the reason why the presumption of useful life was rebutted.
• Description, carrying amount and remaining amortization period of any individual asset that is material to financial statements.

• The financial statements should disclose the following for each class of intangible assets, distinguishing between internally generated assets and other assets:

• The useful lives or the amortization rates used.
• The amortization method used.
• The gross carrying amount and the accumulated amortization at the beginning and at the end of the period.

• For intangible assets acquired by way of Government grants:

• The fair value initially recognized
• The carrying amount
• Whether they are carried at bench mark (cost less acc amortization) or the allowed alternative treatment (revalued amount less acc amortization)
• The existence of intangible assets whose title is restricted and the carrying amount intangible assets pledged as security for liabilities.
• The amount of commitments for acquisition of intangible assets.