IAS 1

In March 1974, the draft standard E1 “Disclosure of Accounting Policies” was released, and in January 1975 the IAS 1 “Disclosure of Accounting Policies” was published, which entered into force on January 1, 1975. In June 1975, Draft E5 “Information to be Disclosed in the Financial Statements” was released, and in October 1976 IAS 5 “Information to Be Disclosed in the Financial Statements” was published, which entered into force on January 1, 1977. In July 1978, the draft standard E14 “Current Assets and Current Liabilities” was released, and in November IAS 13 “Presentation of Current Assets and Current Liabilities” was published, which entered into force on January 1, 1981. In 1994, IAS 1, IAS 5, and IAS 13 were modernized. In July 1996, the draft standard E53 “Presentation of financial statements” was released, and in August 1997 the standard was published replacing the old standards IAS 1 (1975), IAS 5, and IAS 13 (1979), which entered into force on July 1, 1998. . On December 18, 2003, IAS 1 version 2003 was published, which entered into force on January 1, 2005, and on August 18, 2005, an addendum was issued on the disclosure of information on capital, which entered into force on January 1, 2007. On September 6, 2007, IAS 1 version 2007 was released, which came into force on January 1, 2009, and on February 14, 2008, additions to financial instruments with the right to resell to the issuer and obligations arising from liquidation that came into force on 1 January 2009 On May 22, 2007, additions were made to the classification of derivative financial instruments, which entered into force on January 1, 2009. On May 6, 2010, additions were made to classify current liabilities, which entered into force on January 1, 2011. On June 16, 2011, additions were made to present items of other comprehensive income, which entered into force on July 2012. On May 17, 2012, additions were made to comparative data, which entered into force on January 1, 2013, and December 18, 2014, changes were made in the presentation of information that entered into force on January 1, 2016 ^[3] .

General purpose financial statements - financial statements that are designed to meet the needs of users who are not entitled to require the preparation of reports taking into account their needs for specific information, and is a structured representation of the financial position and financial performance of the company ^[4] .

The purpose of IAS 1 is to present general purpose financial statements in order to achieve comparability with the financial statements of the company for previous periods and with the financial statements of other companies ^[4] .

The purpose of financial statements is to present truthful financial information at least annually ^[5] :

• on the financial position of the company (assets, liabilities and capital),
• on financial performance (income and expenses, including profit and loss),
• on contributions and distributions to owners,
• about cash flow.

A complete set of financial statements includes ^[6] :

• statement of financial position
• statement of profit or loss and other comprehensive income,
• statement of changes in equity
• cash flow statement
• Notes to the financial statements, including key accounting policies and various explanatory material,
• A statement of financial position at the beginning of the earliest period for which comparative information is presented where IAS 8 applies.

• The financial statements present fairly the financial position, financial performance and cash flows of the company.
• It is prepared on the basis of the assumption of business continuity .
• Reporting with the exception of the statement of cash flows applies the accrual basis of accounting .
• The presentation and classification of items in the financial statements is retained from one period to the next ( presentation sequence ).
• Omissions and distortions are significant if they can affect user decisions. Each significant class of similar articles must be presented separately.
• If any article is not material, it is combined ( aggregated ) with other articles.
• Assets and liabilities, income and expenses are not subject to offset , except when permitted by any IFRS ^[7] .

Separately reflected in the statement of financial position short-term and long-term assets and liabilities. The presentation of assets and liabilities in order to increase or decrease liquidity in the financial statements of financial companies makes the information more reliable and relevant. The distinction between short-term and long-term articles depends on the duration of the operating cycle of the company, and if it cannot be reliably estimated, then it is assumed that its duration is 12 months.

An asset is classified as short-term if it meets any of the following criteria ^[8] :

• It is supposed to be realized or consumed during the normal operating cycle,
• intended for commercial use,
• it is expected to be implemented within 12 months after the reporting date,
• represents cash or cash equivalents with no restrictions on use.

All other assets are classified as non-current including deferred tax assets.

A liability is classified as current if it meets any of the following criteria ^[8] :

• expected to be repaid in the normal course of business during the operating cycle,
• intended for commercial use,
• must be repaid within 12 months after the reporting date,
• There is no unconditional right to defer repayment of a liability for a period of more than 12 months after the reporting period.

All other liabilities are classified as non-current including deferred tax liabilities.

Minimum Articles of the Statement of Financial Position ^[4] :

• fixed assets
• investment property
• intangible assets
• financial assets
• investments
• biological assets
• stocks
• trade and other receivables ,
• cash and cash equivalents
• the amount of assets classified as held for sale,
• trade and other payables
• reserves
• financial liabilities
• current tax liabilities and assets,
• Deferred tax liabilities and assets
• liabilities included in a disposal group classified as held for sale,
• issued capital and reserves
• share of non-controlling shareholders recognized in equity.

Property, plant and equipment are classed in accordance with IAS 16 . Accounts receivable are split from buyers, from related parties, prepayments, other amounts. Stocks are divided into classes, goods, inventories, materials, work in progress, finished products.

Statement of Financial Position

In connection with the need for a separate presentation of changes in equity for the reporting period, which are not the result of transactions with the owners of the company, represent the minimum composition of income and expenses ^[4] :

• revenue
• financial expenses,
• the company's share in the profit or loss of associates and joint ventures accounted for using the equity method,
• income tax expenses,
• total amount, including:

• profit or loss (net of tax) from discontinued operations,
• Income or expense (net of tax) recognized at fair value less costs to sell or when assets or disposal groups representing discontinued operations are disposed of

• profit or loss
• each component of the other parts of the total income, classified by type,
• share of other components of the total income of associates and joint ventures accounted for using the equity method,
• total value of total income:

• to non-controlling shareholders
• on the shareholders of the parent company of the group.

• Items that will not subsequently be reclassified to profit or loss:

• actuarial gains (losses) on defined benefit plans,
• changes in the revaluation reserve for fixed assets and intangible assets,
• Changes in the fair value of a financial asset that is an investment in an equity instrument, or liabilities for which a decision has been made to measure them at fair value and present profit or loss from such financial instruments as part of other comprehensive income.

• Articles that subsequently, subject to certain conditions, will be reclassified to profit or loss:

• effective portion of gains (losses) on cash flow hedging instruments.

• total value of total income:

• to non-controlling shareholders
• on the shareholders of the parent company of the group.

Structure of the statement of profit and loss and other comprehensive income

The company presents changes in equity related to owners in the Statement of Changes in Equity

The requirements for the presentation of the Statement of cash flows are discussed in IAS 7 “Statement of cash flows”.

Statement of cash flows through the direct method

The notes help users to understand the financial statements and compare them with the financial statements of other companies and provide information ^[4] :

• statement of compliance with IFRS,
• significant accounting policies:

• Judgments made by company management that have the greatest effect on the amounts recognized in the financial statements,
• key assumptions regarding the future and key sources of uncertainty at the reporting date, which leads to a significant risk of material adjustments to the carrying amount of assets and liabilities during the next financial year, with detailed information about the entity and the carrying amount at the reporting date.

• Additional information on the articles presented in the reports:

• qualitative information about what capital represents, whether there are external restrictions on capital management, how the company achieves its goals regarding capital management.

• disclosure of other information:

• contingent liabilities and unrecognized contractual obligations (dividends offered or declared during the period but not recognized as a capital distribution, the amount of dividends per share, unrecognized dividends on cumulative preferred shares),
• disclosure of non-financial information (permanent location and legal form of the company, office registration address, description of the nature of the company's operations and its main activities, name of the parent company and the parent company of the group).

RCC (SIC) 29 “Concession Service Agreements - Disclosure of Information”, published December 24, 2001 ^[9] , and entered into force on December 31, 2001, discloses information on concession agreements ^[1] .