Wednesday, May 25, 2016

IAS 1 –The First Gunshot

“That you were born in a bakery doesn’t make you a loaf of bread.”


Have you ever been a spectator in a relay race? Ever been thrilled by the way the baton passes from the first runner to the anchor man? There’s one common goal the teammates hold dear to their hearts –crossing the tape even if winning seems slim.

The same applies to the issuance of standards by the IASB. The major aim of every standard is to achieve one common goal –the presentation of a true and fair financial statement.
 Little wonder this was the first shot released from the arsenal of the defunct IASC. This is in no way different from the saying of Steven Covey, “Begin with the end in mind.”

As long as everyone in a race doesn’t come out all victorious, it is worthy to note that the IASB never envisaged a perfect financial statement, rather, one that fairly presents the state of the organization in the best possible way. Hence, the saying that, “it is better to be roughly right than to be perfectly wrong.”

For more clarification and simplified explanation on the subject matter of IAS 1 –Presentation of Financial Statements, click below to view or download the pdf. Read it carefully as it serves as the basis for subsequent standards.
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