IFRS (International Financial Reporting Standards), which is probably the Bible when it comes to accounting worldwide states that the presentation and classification of items in the financial statements shall be retained from one period to the next unless it is apparent, following a significant change in the nature of the entity\u2019s operations or a review of its financial statements, that another presentation of classification would be more appropriate having regard to the criteria for selection and application of accounting policies.\u00a0<\/p>\n
When it comes to choosing accounting presentation it\u2019s often so that on current year we choose one approach and completely change our methods the other year. Why it is so is hard to understand and explain, but most probably has something to do with us just neglecting or not putting enough emphasis on the importance of having figures comparable. Comparability is what is mostly aimed with retaining the presentation and classification. Let\u2019s say that this year you\u2019re showing your currency losses under financial expenses and on next year under operating expenses. Do you think both the financial and operating expenses are comparable from year to year now? Well, if those expenses are close to non-existent, then probably they would be, however if the number is significant, they most probably wouldn\u2019t be.<\/p>\n
You\u2019re preparing your figures and reports not only for yourself, but others as well. For them it\u2019s essential to have comparable figures, enough fair information to base their decisions upon. As such it\u2019s crucial you maintain the same presentation over the years having the \u201cunless\u201d options in mind as always obviously.<\/p>\n","protected":false},"excerpt":{"rendered":"
IFRS (International Financial Reporting Standards), which is probably the Bible when it comes to accounting worldwide states that the presentation and classification of items in the financial statements shall be retained from one period to the next unless it is apparent, following a significant change in the nature of the entity\u2019s operations or a review […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,74],"tags":[],"class_list":["post-3766","post","type-post","status-publish","format-standard","hentry","category-2-processes","category-2-7-accounting-in-itself"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3766","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=3766"}],"version-history":[{"count":1,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3766\/revisions"}],"predecessor-version":[{"id":3767,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3766\/revisions\/3767"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=3766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=3766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=3766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}