Please Explain What Are The Underlying Accounting Principles That At Least Need To Be Follow When Presenting Financial Statements under FRS 101

Under FRS 101 ( Presentation of Financial Statements) it stipulates the minimum underlying accounting principles when presenting the financial statements:

  • Going concern- refer article
  • Accrual basis of accounting-refer article
  • Consistency of presentation- refer article
  • Materiality and aggregation – Each material class of item should be presented separately
  • Offsetting meaning that Assets and Liabilities are not to be offset


Comparative information whether it is narrative and or descriptive need to be disclosed to allowed the assessment of trends in financial information for predictive purposes.  This disclosure is to enhance the inter-period comparability of information which assists users in making better economic decisions.

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