ACCA Applied Knowledge · Financial Accounting · Disclosure notes
Under IAS 1, which item would normally be presented first in the notes to the financial statements?
The notes normally begin with a statement of compliance with IFRS Accounting Standards, followed by the significant accounting policies, then supporting detail for items in the primary statements, and finally other disclosures such as contingencies and related parties.
- AA statement of compliance with IFRS Accounting StandardsCorrect
- BBreakdowns of property, plant and equipment
- CDetails of contingent liabilities
- DRelated party transactions
Explanation
IAS 1 requires notes to be presented systematically, usually starting with a statement of compliance with IFRS, followed by significant accounting policies, then supporting information for the primary statements and other disclosures. Breakdowns, contingencies and related parties come later. Compliance statement therefore comes first.
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