Please note that this course has now replaced A298 FRS 1 Presentation of Financial Statements and FRS 7 Statement of Cash Flows

The workshop provides guidance to help participants understand the requirements of FRS 118 which will replace the existing FRS 1. FRS 118 is applicable for annual reporting periods beginning on or after 1 Jan 2027.  In addition to the general requirements of the financial statements, the session will explore the classification and presentation of income, changes in accounting policy, and the interaction of FRS 118 with FRS 7 and FRS 8. The session will focus on practical application of the standards.

At the end of this course, you will be able to:

• Understand the distinctions between categories such as operating, investing, and financing within the Statement of Profit or Loss;
• Apply the principles of FRS 118 to ensure consistency in financial statement presentation, disclosure, and classification;
• Analyse how changes in accounting policy, retrospective restatements, and comparative information affect financial statements; and
• Evaluate the impact of FRS 118 on related standards such as FRS 7 (Statement of Cash Flows) and FRS 8 (Basis of Preparation of Financial statements).

Programme Outline

Introduction to FRS 118

• Overview and objectives of FRS 118
• Key principles of presentation and disclosure

General Requirements for Financial Statements

• Structure and components of financial statements
• Fair presentation and compliance with standards
• Accrual basis, going concern, and frequency of reporting
• Changes in accounting policy, retrospective restatement or classification

Detailed Presentation in the Statement of Profit or Loss

• Operating category
• Investing category
• Financing category
• Income taxes category
• Discontinued operations category
• Management-defined performance measures

Comprehensive Income and Financial Position

• Statement presenting comprehensive income: structure and components
• Statement of financial position: classification of assets, liabilities, and equity

Impact of FRS 118 on the following

• FRS 7 Statement of Cash Flows
• FRS 8 Basis of Preparation of Financial Statements

Intended For

Professional Accountants who are involved in the preparation of financial statements.

Programme Facilitator(s)