Reporting period Financial statements are prepared for a specified period of time (reporting
period) and provide information about:
(a)
assets and liabilities—including unrecognised assets and liabilities—
and equity that existed at the end of the reporting period, or during
the reporting period; and
(b)
income and expenses for the reporting period.
To help users of financial statements to identify and assess changes and
trends, financial statements also provide comparative information for at least
one preceding reporting period.
Information about possible future transactions and other possible future
events (forward-looking information) is included in financial statements if it:
(a)
relates to the entity’s assets or liabilities—including unrecognised
assets or liabilities—or equity that existed at the end of the reporting
period, or during the reporting period, or to income or expenses for
the reporting period; and
(b)
is useful to users of financial statements.
For example, if an asset or liability is measured by estimating future cash
flows, information about those estimated future cash flows may help users of
financial statements to understand the reported measures. Financial
statements do not typically provide other types of forward-looking
information, for example, explanatory material about management’s
expectations and strategies for the reporting entity.
Financial statements include information about transactions and other events
that have occurred after the end of the reporting period if providing that
information is necessary to meet the objective of financial statements (see
paragraph 3.2).
Perspective adopted in financial statements Financial statements provide information about transactions and other events
viewed from the perspective of the reporting entity as a whole, not from the
perspective of any particular group of the entity’s existing or potential
investors, lenders or other creditors.
