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10. Finance & accounting standards
  
  Article 95-General financial reports  
95.1 General financial reports  
  Financial reports are a structured representation of the financial position and financial performance of the Nation. The objective of general purpose financial reports is to provide information about the financial position, financial performance and cash flows of the Nation that is useful to a wide range of users in making economic decisions, including:
  
  (i). Assets;  
  (ii). Liabilities;  
  (iii). Equity;  
  (iv). Income and expenses, including gains and losses;
  
  (v). Other changes in equity; and  
  (vi). Cash flows.  
  This information, along with other information in the notes, assists users of financial reports in predicting the Nation's future cash flows and, in particular, their timing and certainty.
  
95.2 Components of a Financial Report  
  A financial report comprises:  
  (i). A balance sheet;  
  (ii). An income statement;
  
  (iii). A statement of changes in equity showing either:  
 

(a). All changes in equity, or

(b). Changes in equity other than those arising from transactions with equity holders acting in their capacity as equity holders;

  
  (iv). A cash flow statement; and  
  (v). Notes, comprising a summary of significant accounting policies and other explanatory notes.
  
95.3 Accrual Basis of Accounting  
  the Nation shall prepare its financial report, except for cash flow information, using the accrual basis of accounting.
  
95.4 Consistency of Presentation  
  The presentation and classification of items in the financial report shall be retained from one period to the next unless:
  
  (i). It is apparent, following a significant change in the nature of the Nation's operations or a review of its financial report, that another presentation or classification would be more appropriate having regard to the criteria for the selection and application of international accounting policies; or
  
  (ii). An international Accounting Document requires a change in presentation.

  
95.5 Materiality and Aggregation  
  Each material class of similar items shall be presented separately in the financial report. Items of a dissimilar nature or function shall be presented separately unless they are immaterial.
  
95.5 Offsetting  
  Assets and liabilities, and income and expenses, shall not be offset unless required or permitted by an international Accounting Document.
  
  It is important that assets and liabilities, and income and expenses, are reported separately. Offsetting in the income statement or the balance sheet, except when offsetting reflects the substance of the transaction or other event, detracts from the ability of users both to understand the transactions, other events and conditions that have occurred and to assess the Nation's future cash flows. Measuring assets net of valuation allowances - for example, obsolescence allowances on inventories and doubtful debts allowances on receivables - is not offsetting.
  
95.6 Comparative Information  
  Except when an international Accounting Document permits or requires otherwise, comparative information shall be disclosed in respect of the previous period for all amounts reported in the financial report. Comparative information shall be included for narrative and descriptive information when it is relevant to an understanding of the current period's financial report.
  
95.7 Identification of the Financial Report  
  The financial report shall be identified clearly and distinguished from other information in the same published document.
  
  The financial report shall be presented in the English language.
  
  Each component of the financial report shall be identified clearly.
  
  In addition, the following information shall be displayed prominently, and repeated when it is necessary for a proper understanding of the information presented:  
  (i). The name of the Nation that is reporting or other means of identification, and any change in that information from the preceding reporting date;
  
  (ii). Whether the financial report covers the individual Company or a group of entities;
  
  (iii). The reporting date or the period covered by the financial report, whichever is appropriate to that component of the financial report;
  
  (iv). The presentation currency, as defined in international Accounting Documents concerning The Effects of Changes in Foreign Exchange Rates; and
  
  (v). The level of rounding used in presenting amounts in the financial report.
  
  (vi). When the presentation currency is different from the Nation currency, the Nation shall disclose the reason and justification for not using the Nation currency.
  
95.8 Reporting Period  
  Financial reports shall be presented at least annually. When a the Nation's reporting date changes and the annual financial report is presented for a period longer or shorter than one year, the Nation shall disclose, in addition to the period covered by the financial report:
  
  (i). The reason for using a longer or shorter period; and
  
  (ii). The fact that comparative amounts for the income statement, statement of changes in equity, cash flow statement and related notes are not entirely comparable.
  
95.9 Reporting Period  
  Financial reports shall be presented at least annually. When a the Nation's reporting date changes and the annual financial report is presented for a period longer or shorter than one year, the Nation shall disclose, in addition to the period covered by the financial report:
  
  (i). The reason for using a longer or shorter period; and
  
  (ii). The fact that comparative amounts for the income statement, statement of changes in equity, cash flow statement and related notes are not entirely comparable.
  
95.9 Balance Sheet  
  Current/Non-current Distinction  
  the Nation shall present current and non-current assets, and current and non-current liabilities, as separate classifications on the face of its balance sheet except when a presentation based on liquidity provides information that is reliable and is more relevant. When that exception applies, all assets and liabilities shall be presented broadly in order of liquidity.
  
  Current Assets  
  An asset shall be classified as current when it satisfies any of the
following criteria:		  
  (i). It is expected to be realised in, or is intended for sale or consumption in, the Nation's normal operating cycle;
  
  (ii). It is held primarily for the purpose of being traded;
  
  (iii). It is expected to be realised within twelve months after the reporting date; or
  
  (iv). It is cash or a cash equivalent (as defined in international Accounting Documents concerning Cash Flow Statements) unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.
  
  All other assets shall be classified as non-current.
  
  Current Liabilities  
  A liability shall be classified as current when it satisfies any of the following criteria:  
  (i). It is expected to be settled in the Nation's normal operating cycle;  
  (ii). It is held primarily for the purpose of being traded;  
  (iii). It is due to be settled within twelve months after the reporting date; or  
  (iv). the Nation does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.  
  All other liabilities shall be classified as non-current.
  
  Information to be Presented on the Face of the Balance Sheet  
  As a minimum, the face of the balance sheet shall include line
items that present the following amounts:		  
  (i). Property, plant and equipment;  
  (ii). Investment property;  
  (iii). Intangible assets;  
  (iv). Financial assets;  
  (v). Investments accounted for using the equity method;  
  (vi). Biological assets;  
  (vii). Inventories;  
  (viii). Trade and other receivables;  
  (ix). Cash and cash equivalents;  
  (x). Trade and other payables;  
  (xi). Provisions;  
  (xii). Liabilities and assets for current tax, as defined in international Accounting Documents concerning Income Taxes;  
  (xiii). Deferred tax liabilities and deferred tax assets, as defined in;
  
  (xiv). Minority interest, presented within equity; and
  
  (xv). Issued capital and reserves attributable to equity holders of the parent.
  
95.10 Information to be Presented either on the Face of the Balance
Sheet or in the Notes		  
  the Nation shall disclose, either on the face of the balance sheet or in the notes, further sub classifications of the line items presented, classified in a manner appropriate to the Nation's operations.
  
  The detail provided in sub classifications depends on the requirements of international Accounting Documents and on the size, nature and function of the amounts involved. The factors also are used to decide the basis of sub classification. The disclosures vary for each item, for example:
  
  (i). Items of property, plant and equipment are disaggregated into classes in accordance with international Accounting Documents;
  
  (ii). Receivables are disaggregated into amounts receivable from trade customers, receivables from related parties, prepayments and other amounts;
  
  (iii). Inventories are sub classified, in accordance with international Accounting Documents concerning Inventories, into classifications such as merchandise, production supplies, materials, work in progress and finished goods;
  
  (iv). Provisions are disaggregated into provisions for employee benefits and other items; and
  
  (v). Contributed equity and reserves are disaggregated into various classes, such as paid-in capital, share premium and reserves.
  
95.11 Information to be Presented on the Face of the Income
Statement		  
  As a minimum, the face of the income statement shall include line items that present the following amounts for the period:  
  (i). Revenue;  
  (ii). Finance costs;  
  (iii). Share of the profit or loss of associates and joint ventures accounted for using the equity method;
  
  (iv). Tax expense;  
  (v). A single amount comprising of (a) the post-tax profit or loss of discontinued operations and (b) the post-tax gain or loss recognized on the measurement to fair value less costs to sell or on the disposal of the assets or disposal group(s) constituting the discontinued operation; and
  
  (vi). Profit or loss.  
95.11 Statement of Changes in Equity  
  the Nation shall present a statement of changes in equity showing on the face of the statement:  
  (i). Profit or loss for the period;
  
  (ii). Each item of income and expense for the period that, as required by other international Accounting Documents, is recognized directly in equity, and the total of these items;
  
  (iii). Total income and expense for the period (calculated as the sum of (a) and (b)), showing separately the total amounts attributable to equity holders of the parent and to minority interest; and
  
  (iv). For each component of equity, the effects of changes in accounting policies and corrections of errors recognized in accordance with international Accounting Documents.
  
95.12 Cash Flow Statement  
  Cash flow information provides users of financial reports with a basis to assess the ability of the Nation to generate cash and cash equivalents and the needs of the Nation to utilize those cash flows. International Accounting Documents concerning Cash Flow Statements sets out requirements for the presentation of the cash flow statement and related disclosures.
  
95.13 Disclosure of Accounting Policies  
  the Nation shall disclose in the summary of significant accounting policies:  
  (i). The measurement basis (or bases) used in preparing the financial report; and
 
  (ii). The other accounting policies used that are relevant to an understanding of the financial report.
  
     
     
     
 
 

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