IAS 1 Presentation Of Financial Statements |

Natural disasters – Disclosure by Telefonica

(Source page 24 – 25 2018 Consolidated financial statements Telefonica S.A.) Natural disasters – Disclosure by Telefonica

We have Global Business Continuity Regulations which, among other matters, contemplate the controls necessary to ensure the security and continuity of our processes, defining the necessary management, roles and responsibilities. These regulations contemplate:

  • Business Continuity Plan: Outlines the process and associated logistics so that the Company can recover and restore critical functions that have been partially or totally disrupted within a given time after an unwanted shutdown.
  • Global Crisis System: By means of which we manage the high-impact incidents that threaten us. It has a Global Crisis Committee, which includes specialists depending on the type of incident (natural catastrophes, man-made incidents,
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Natural disasters – Miscellaneous considerations

Future operating losses Natural disasters – Miscellaneous considerations

Entities may incur other losses directly or indirectly related to a natural disaster. An entity may anticipate having future operating losses for a period of time after a natural disaster. For example, an entity may have repair costs, lost revenue due to plant closures or losses due to an overall decline in the economy. Additional costs might be incurred in renting alternative production facilities, providing transport or accommodation for employees or outsourcing business functions.

Future operating losses and costs do not meet the definition of a liability (because they do not arise from a present obligation resulting of a past event), and therefore are not recognised until incurred.

Onerous contracts

A contract … Read more

Alternative performance measures

Effective communication in financial statements is also supported by considering entity-specific information is more useful than standardised descriptions, sometimes referred to as ‘boilerplate’ [IAS 1 7.6]

Although financial statements are essential to any entity’s financial reporting, the financial statements represent only one of several reports used by entities to communicate decision-useful information. Entities often find that KPIs beyond the ones reported in the financial statements add value to users, in particular, to enhance the users’ ability to predict future earnings. User communities generally apply alternative performance measures (APM) actively in their performance and investment analysis, and, as such, APMs are an important aspect of entities’ communication of financial information.

APMs include financial measures, such as subtotals, presented in Read more

Aggregation, disaggregation, and materiality

Aggregation, disaggregation, and materiality are cornerstones of financial reporting using IFRS. Here is a summary of the financial reporting items that include (mostly) disclosure requirements that relate to these cornerstones. See also Aggregation for an overview of general financial reporting rules in that respect.

Fair value measurement

Present additional line items (including by disaggregating the line items listed in IAS 1 54), headings and subtotals in the statement of financial position when such presentation is relevant to an understanding of the entity’s financial position. This may require additional line items when the size, nature or function of an item or aggregation of similar items is such that separate presentation is relevant to an understanding of the entity’s financial position.Read more

Presentation and disclosure of crypto-assets

The disclosure by holders of crypto-assets will be driven by the disclosure requirements of the IFRS standards that are applied in accounting for them. This narrative illustrates selected disclosure requirements for each classification and measurement in more detail, as well as the general IAS 1 requirements that could be relevant to the holder of crypto-assets.

Holders of crypto-assets need to consider materiality when determining what disclosures are required in their specific circumstances, as well as when to aggregate amounts on the face of the financial statements and in the notes. An entity should not obscure material information with immaterial information or aggregate material items that have different natures or functions as these will reduce the understandability of the financial statements … Read more

The Main Statements of Financial Statements

This is some explanation of the basic presentation of Financial Statements into a categorised format that is useful for the most of the users for Financial Statements.

There are four main financial statements:

  • Statement of Financial Position,
  • Statement of Profit or Loss and Other Comprehensive Income,
  • Statement of Cash Flows,
  • Statement of changes in Shareholders’ Equity.

The Statement of Financial Position (blast from the past, also previously known as the Balance sheet) shows what a company owns and what it owes at a fixed point in time.

The Statement of Profit or Loss and Other Comprehensive Income (or the older name Income statement) shows how much money a company made and spent over a period of time (but not on … Read more