IAS 1/AASB 101 defines a complete set of financial statements as comprising:
A) a balance sheet, a profit or loss report, a statement of cash flows and a director's report.
B) a statement of financial position, a statement of profit or loss and other comprehensive income for the period, a statement of changes in equity, a statement of cash flows , and notes comprising a summary of accounting policies and other explanatory information.
C) a statement of financial position, a statement of profit or loss and other comprehensive income for the period, a statement of changes in equity and a statement of cash flows.
D) a statement of financial position, a statement of profit or loss and other comprehensive income for the period, and a statement of cash flows.

Question

Quizplus · Accepted Answer

IAS 1/AASB 101 identifies a complete set of financial statements that includes a statement of financial position (balance sheet), a statement of profit or loss and other comprehensive income for the period (profit or loss report), a statement of changes in equity, a statement of cash flows, and notes comprising a summary of accounting policies and other explanatory information. Therefore, option B is the correct choice as it includes all the components of a complete set of financial statements as per IAS 1/AASB 101.

IAS 1/AASB 101 Defines a Complete Set of Financial Statements