IAS 1. presentation of financial statements

INTERNATIONAL ACCOUNTING STANDARD No 1: (IAS 1) Presentation of financial statements

International Accounting Standard 1 is contained in paragraphs 1 to 128 and in the Appendix. All paragraphs have equal normative value, although the Standard retains the IASC format that it had when it was adopted by the IASB. 1 should be understood in the context of the Foreword to International Financial Reporting Standards and the Conceptual Framework for the Preparation and Presentation of Financial Statements. La_NIC_8_ Accounting policies, changes in accounting estimates and errors provides the basis for selecting and applying accounting policies that do not have specific guidelines.

nic-1-presentation-of-financial-statements

OBJECTIVE

The objective of this Standard is to establish the bases for the presentation of the statements for general information, in order to ensure that they are comparable, both with the financial statements of the same entity from previous years, and with those of other different entities.. To achieve this objective, the Standard establishes, first, general requirements for the presentation of financial statements, and then provides guidelines for determining their structure, while setting minimum requirements on their content. Both the recognition, as well as the valuation and the information to be disclosed on certain transactions and other events, are addressed in other Standards and Interpretations.

SCOPE

This Standard will be applied to all types of financial statements for general information purposes, which are prepared and presented in accordance with International Financial Reporting Standards (IFRS).

Financial statements for general information purposes are those that are intended to meet the needs of users who are not in a position to demand reports tailored to their specific information needs. Financial statements for general information purposes include those that are presented separately, or within another public document, such as the annual report or a stock information brochure or prospectus. This Standard will not apply to the structure and content of interim financial statements that are presented in a condensed form and prepared in accordance with IAS_34_ Interim financial information. However, paragraphs 13 to 41 will apply to such statements. The rules established in this Standard shall apply in the same way to all entities,regardless of whether they prepare consolidated or separate financial statements, as defined in_IAS_27_ Consolidated and separate financial statements.

The additional requirements for the information to be provided by banks and other similar financial entities, which are consistent with those established in this Standard, are specified in_NIC_30_ Information to be disclosed in the financial statements of banks and similar financial entities.

This Standard uses terminology typical of for-profit entities, including those belonging to the public sector. Non-profit entities, whether they belong to the private or public sector, or to any type of public administration, if they wish to apply this Standard, could be forced to modify the descriptions used for certain items of the financial statements, and even of change the names of the financial statements.

Similarly, entities that lack equity, as defined in_IAS_32_ Financial Instruments: Presentation and disclosure (for example, some investment funds), and those entities whose capital is not equity (for example, some cooperative entities) may need to adapt the presentation of the interests of their members or participants in the financial statements.

PURPOSE OF THE FINANCIAL STATEMENTS

Financial statements are a structured representation of the entity's financial position and financial performance. The objective of financial statements for general information purposes is to provide information about the financial position, financial performance and cash flows of the entity that is useful to a wide variety of users when making economic decisions.. The financial statements also show the results of the management carried out by the administrators with the resources entrusted to them. To meet this objective, the financial statements will provide information about the following elements of the entity:

assets; liabilities; net worth; income and expenses, including profit and loss; other changes in net worth; and (f) cash flows.

This information, together with that contained in the notes, will help users to predict future cash flows and, in particular, their timing and their degree of certainty.

COMPONENTS OF THE FINANCIAL STATEMENTS

A complete set of financial statements will include the following components:

balance; income statement; a statement of changes in equity showing: all changes in equity; or changes in equity other than those arising from transactions with its owners, when they act as such; Statement of cash flows; and notes, which will include a summary of the most significant accounting policies and other explanatory notes.

Many entities present, in addition to financial statements, a financial analysis prepared by management that describes and explains the main characteristics of the entity's financial position and performance, as well as the most important uncertainties it faces. This report may include an examination of:

the main factors and influences that have determined financial performance, including changes in the environment in which the entity operates, the response that the entity has given to such changes and their effect, as well as the investment policy that it follows to maintain and improve the same, including its dividend policy, the sources of financing of the entity, as well as its objective regarding the ratio of debts to equity; and the resources of the entity whose value is not reflected in the balance sheet that has been prepared in accordance with IFRS.

Many entities also present, in addition to their financial statements, other reports and statements, such as those related to the status of added value or environmental information, particularly in industrial sectors where workers are considered an important group of users or environmental factors are significant, respectively. These reports and statements, presented separately from the financial statements, will be outside the scope of IFRS.

DEFINITIONS

The following terms are used, in this Standard, with the meaning specified below:

Impracticable. The application of a requirement will be impracticable when the entity cannot apply it after making all reasonable efforts to do so.

Materiality (or relative importance). The omissions or inaccuracies of items are material (or have relative importance) if they can, individually or as a whole, influence the economic decisions made by users based on the financial statements. The materiality will depend on the magnitude and nature of the omission or inaccuracy, judged according to the particular circumstances in which they occurred. The size or nature of the item, or a combination of both, could be the determining factor.

International Financial Reporting Standards (IFRS) are the Standards and Interpretations adopted by the International Accounting Standards Council (CNIC). These Standards include:

the International Financial Reporting Standards; the International Accounting Standards; and the Interpretations originated by the International Financial Reporting Interpretations Committee (IFRIC) or the old Interpretations (SIC).

Notes. They contain information additional to that presented in the balance sheet, income statement, statement of changes in equity and statement of cash flows. They provide narrative descriptions or breakdowns of such statements and contain information on the items that do not meet the conditions to be recognized in those statements.

Assessing when an omission or inaccuracy can influence the economic decisions of users, thus being considered material or with relative importance, will require taking into account the characteristics of such users. The Conceptual Framework for the preparation and presentation of financial statements establishes, in paragraph 25, that “it is assumed that users have a reasonable knowledge of economic activities and the business world, as well as their accounting, and also the willingness to study the information with reasonable diligence ”. Consequently, the assessment will require taking into account how users with the described characteristics can reasonably be expected to be influenced when making financial decisions.

GENERAL CONSIDERATIONS

The financial statements will faithfully reflect the situation, financial performance and cash flows of the entity. The true image requires the faithful representation of the effects of the transactions, as well as of other events and conditions, in accordance with the definitions and criteria for recognition of assets, liabilities, income and expenses established in the Conceptual Framework. It will be presumed that the application of IFRS, accompanied by additional information when necessary, will give rise to financial statements that provide a fair presentation.

Any entity whose financial statements comply with IFRS will make, in the notes, an explicit and unreserved statement of compliance. Financial statements will not declare compliance with IFRS unless they meet all the requirements of IFRS.

In practically all cases, fair presentation will be achieved in compliance with the applicable IFRS.

A fair presentation also requires that the entity:

Select and apply accounting policies in accordance with IAS_8_ Accounting_policies, changes in accounting estimates and errors. IAS_8 establishes a normative hierarchy to be considered by management in the absence of a Standard or Interpretation specifically applicable to an item. Present the information, including that relating to accounting policies, in a way that is relevant, reliable, comparable and understandable. Additional information provided that the requirements of IFRS are insufficient to allow users to understand the impact of certain transactions, other events or conditions, on the financial situation and performance of the entity.

Inadequate accounting policies will not be legitimized by giving information about them, nor by the inclusion of notes or other explanatory material in this regard.

In the extremely rare circumstance that management concludes that meeting a requirement in a Standard or Interpretation would lead to such confusion that it conflicts with the objective of financial statements set out in the Conceptual Framework, the entity will not apply it, as established in paragraph 18, provided that the applicable regulatory framework requires, or does not prohibit, this lack of application.

When an entity does not apply a requirement established in a Standard or an Interpretation, in accordance with paragraph 17, it shall disclose information on the following points:

that management has concluded that the financial statements present fairly the financial position and financial performance and cash flows; that the applicable Standards and Interpretations have been complied with, except in the particular case of the non-applied requirement to achieve a fair presentation; the title of the Standard or Interpretation that the entity has ceased to apply, the nature of the dissent, with the treatment that the Standard or Interpretation required, the reasons why that treatment would confuse in such a way as to conflict with the objective of the financial statements set out in the Conceptual Framework, as well as the alternative treatment applied and For each fiscal year for which such information is presented, the financial impact that the lack of application described has had on each item of the financial statements that had been presented in compliance with the requirement in question.

When an entity has ceased to apply, in a previous period, a requirement established in a Standard or an Interpretation, and such non-application affects the amounts recognized in the financial statements of the current period, the information established in paragraphs 18 (c) and (d).

Paragraph 19 shall apply, for example, when an entity has ceased to comply, in a prior period, with a requirement established in a Standard or Interpretation for the valuation of assets or liabilities, and this lack of application affects the valuation of changes. in assets and liabilities recognized in the financial statements of the current year.

In the extremely rare circumstance that management concludes that complying with a requirement set out in a Standard or Interpretation would lead to such confusion that it would conflict with the objective of financial statements set out in the Conceptual Framework, but the regulatory framework prohibited it. stop applying this requirement, the entity must reduce to the extent practicable those aspects of compliance that it perceives as causing the confusion, by disclosing the following information:

the title of the Standard or Interpretation in question, the nature of the requirement, and the reason why management has concluded that compliance with it would be misleading in a way that would conflict with the objective of the financial statements established in the Conceptual Framework; and for each year presented, the adjustments to each item of the financial statements that management has concluded would be necessary to achieve a true picture.

For the purposes of paragraphs 17-21, an item would conflict with the objective of the financial statements when it did not accurately represent the transactions, as well as the other events and conditions that it should represent, or could reasonably be expected to represent, and consequently, was likely to influence economic decisions made by users based on financial statements. When evaluating whether compliance with a specific requirement, established in a Standard or Interpretation, could be confusing and would conflict with the objective of the financial statements established in the Conceptual Framework, management will consider the following aspects:

why the objective of the financial statements is not achieved, in the particular circumstances that are being considered; and the form and extent to which the entity's circumstances differ from those of other entities that meet the requirement in question. If other entities were to comply with this requirement in similar circumstances, there would be a iuris tantum presumption that the entity's compliance with the requirement would not be confusing or would not conflict with the objective of the financial statements established in the Conceptual Framework.

In preparing the financial statements, management will assess the ability of the entity to continue in operation. The financial statements will be prepared under the going concern hypothesis, unless management intends to liquidate the entity or cease its activity, or there is no other more realistic alternative than to proceed in one of these ways. When management, when making this assessment, is aware of the existence of significant uncertainties, relating to events or conditions that may raise significant doubts about the possibility that the entity continues to function normally, it shall proceed to disclose them in the financial statements. In the event that the financial statements are not prepared under the going concern assumption, such fact will be explicitly disclosed,together with the alternative hypotheses on which they have been elaborated, as well as the reasons why the entity cannot be considered as a going concern.

In assessing whether the going concern assumption is appropriate, management will take into account all information that is available for the future, which should cover at least, but not limited to, the following twelve months from the balance sheet date. The degree of detail of the considerations will depend on the facts that are presented in each case. When the entity has a history of profitable operation, as well as easy access to financial resources, the conclusion that using the going concern assumption is appropriate may be reached without conducting an in-depth analysis. In other cases, management, before convincing itself that the continuity assumption is appropriate, would have to weigh a wide range of factors related to current and expected profitability,the debt repayment schedule and potential sources of replacement for existing financing.

Except in relation to information on cash flows, the entity will prepare its financial statements using the accounting hypothesis of accrual.

When the accrual accounting hypothesis is used, items will be recognized as assets, liabilities, equity, income and expenses (the elements of the financial statements), when they satisfy the definitions and recognition criteria provided in the Conceptual Framework for such elements..

The presentation and classification of items in the financial statements will be maintained from one year to the next, unless:

(a) following a change in the nature of the entity's activities or a review of its financial statements, it becomes clear that another presentation or classification would be more appropriate, taking into account the criteria for the selection and application of accounting policies of the_NIC_8; or (b) a Standard or Interpretation requires a change in presentation.

A significant acquisition or disposal, or a review of the presentation of the financial statements, could suggest that those financial statements need to be presented differently. In these cases, the entity will change the presentation of its financial statements only if said change provides reliable and more relevant information for users of the financial statements, and the new structure would have continuity, so that comparability is not impaired. When such changes in presentation occur, the entity reclassifies the comparative information in accordance with paragraphs 38 and 39.

Each class of similar items, which has sufficient relative importance, must be presented separately in the financial statements. Items of a different nature or function must be presented separately, unless they are not material.

Financial statements are the product obtained from the processing of large amounts of transactions and other events, which will be grouped by classes, according to their nature or function. The final stage of the grouping and classification process will consist of the presentation of condensed and classified data, which will constitute the content of the items, whether they appear in the balance sheet, in the income statement, in the statement of changes in equity, in the statement of cash flows, or in the notes. If a specific item is not material or has no relative importance on its own, it will be added with other items, either in the body of the financial statements or in the notes. An item that is not material enough to require a separate presentation in the financial statements may,however, have it to be presented separately in the notes.

The application of the concept of materiality implies that it will not be necessary to comply with a specific information requirement, a Standard or an Interpretation, if the corresponding information lacks materiality. Compensation Assets will not be offset with liabilities, or income with expenses, except when compensation is required or permitted by any Standard or Interpretation.

It is important that both asset and liability items, as well as expenses and income, are presented separately. The offsetting of items, either on the balance sheet or on the income statement, limits the ability of users to understand both the transactions, as well as the other events and conditions, that have occurred, as well as to evaluate future cash flows of the entity, except in the case that the compensation is a reflection of the substance of the transaction or event in question. The presentation of assets net of valuation corrections - for example when the inventories are presented net of corrections of value due to obsolescence and the debts of clients net of corrections for doubtful debts - will not constitute a case of compensation of items.

In_IAS_18 Ordinary Income, the concept of ordinary income is defined and it is required to measure it according to the fair value of the counterpart, received or to be received, taking into account the amount of any commercial discount and reduction for sales volume that are practiced by the entity. An entity will carry out, in the normal course of its activities, other transactions incidental to the activities that generate the most significant revenue. The results of such transactions will be presented offsetting the income with the expenses generated by the same operation, provided that this type of presentation reflects the fund of the transaction. For example: (a) gains or losses from the sale or disposal by other means of non-current assets,Among which are certain financial investments and non-current assets of the operation, they are usually presented net, deducting from the amount received from the sale, the book value of the asset and the corresponding selling expenses; and (b) the disbursements related to provisions recognized in accordance with_IAS_37_ Provisions, contingent assets and contingent liabilities, that have been reimbursed to the entity as a result of a contractual agreement with third parties (for example, a product guarantee agreement covered by a supplier), they may be offset by reimbursements actually received.and (b) the disbursements related to provisions recognized in accordance with IAS_37_ Provisions, contingent assets and contingent liabilities, which have been reimbursed to the entity as a result of a contractual agreement with third parties (for example, a product guarantee agreement covered by a supplier), they may be offset by reimbursements actually received.and (b) the disbursements related to provisions recognized in accordance with IAS_37_ Provisions, contingent assets and contingent liabilities, which have been reimbursed to the entity as a result of a contractual agreement with third parties (for example, a product guarantee agreement covered by a supplier), they may be offset by reimbursements actually received.

In addition to the above, the gains or losses that come from a group of similar transactions will be presented offsetting the corresponding amounts, as happens for example in the case of exchange differences in foreign currency, or in the case of gains or losses. derived from financial instruments held for trading. However, such gains or losses will be presented separately if they are material.

Unless a Standard or Interpretation allows or requires otherwise, the comparative information with respect to the previous year will be presented for all kinds of quantitative information included in the financial statements. Comparative information should also be included in descriptive and narrative information, provided that this is relevant for the proper understanding of the financial statements for the current year.

In some cases, the descriptive information provided in the financial statements for previous years continues to be relevant in the current year. For example, the details of a dispute whose outcome was uncertain on the date of the previous balance sheet and is still to be resolved, will also be included in the information for the current year. Users will find it interesting to know that the uncertainty already existed on the date of the previous balance sheet, as well as the steps that have been taken during the current fiscal year to try to resolve it.

When the form of presentation or the classification of the items in the financial statements is modified, the amounts corresponding to the comparative information will also be reclassified, unless it is impractical to do so. When comparative amounts are reclassified, the entity shall disclose:

the nature of the reclassification; the amount of each item or group of items that have been reclassified; and (c) the reason for the reclassification.

When it is impracticable to reclassify comparative amounts, the entity shall disclose:

the reason for not reclassifying the amounts; and the nature of the adjustments that would have been made if the amounts had been reclassified.

Enhancing the comparability of information between fiscal years helps users in making economic decisions, especially by allowing the evaluation of trends in financial information for predictive purposes. In some circumstances, it is impractical to reclassify comparative information from prior years to achieve comparability with current year figures. For example, some data may have been calculated in previous years, so that they cannot be reclassified and, therefore, it is not possible to calculate the necessary comparative data.

IAS_8 specifically deals with the adjustments to be made, within the comparative information, in the event that the entity changes an accounting policy or corrects an error.

STRUCTURE AND CONTENT

This Standard requires that certain information be presented in the balance sheet, in the income statement and in the statement of changes in equity, while others may be included both in the body of the financial statements and in the notes. IAS_7 establishes the presentation requirements for the statement of cash flows.

In this Standard, the term "disclosure information" is sometimes used in its broadest sense, including both the information found in the balance sheet, in the income statement, in the statement of changes in equity and in the the statement of cash flows, such as the one developed in the notes relating to them. Other Standards and Interpretations also contain disclosure obligations. Unless otherwise specified in the corresponding Standard or Interpretation, such information will be included, without distinction, in the body of the financial statements (either in the balance sheet, in the income statement, in the statement of changes in equity. net or in the statement of cash flows) or in the notes.

The financial statements will be clearly identified, and must be separated from any other information published in the same document.

IFRS will apply exclusively to financial statements, and will not affect the rest of the information presented in the annual report or in another document. Therefore, it is important that users are able to distinguish the information that is prepared using IFRS from any other type of information that, although it may be useful for their purposes, is not subject to the requirements of the former.

Each of the components of the financial statements will be clearly identified. In addition, the following information will be displayed in a prominent place, and will be repeated as many times as necessary for a correct understanding of the information presented:

the name or other type of identification of the entity that presents the information, as well as any change in that information since the date of the preceding balance sheet; whether the financial statements belong to the individual entity or to a group of entities; the balance sheet date or period covered by the financial statements, as appropriate to the relevant component of the financial statements; the presentation currency, as defined in_IAS_21_ Effects of variations in foreign currency exchange rates; and the level of aggregation and rounding used in presenting financial statement figures.

The requirements set forth in paragraph 46 will normally be fulfilled by information provided in the headings of the pages, as well as in the abbreviated names of the columns on each page, within the financial statements. The use of evidence is necessary to determine the best way to present this information. For example, when financial statements are presented electronically they are not always separated into pages; The above items will be presented frequently enough to ensure a proper understanding of the information provided.

Financial statements are often more understandable by presenting figures in thousands or millions of monetary units of the presentation currency. This will be acceptable to the extent that the level of aggregation or rounding of the figures is reported, and provided that no material or material information is lost in doing so.

The financial statements will be prepared with a periodicity that will be, at least, annually. When the entity's balance sheet date changes and prepares financial statements for an accounting period of more than or less than one year, the entity must report the specific period covered by the financial statements and, in addition, of:

the reason for using a shorter or longer period; and the fact that the figures offered in the income statement, in the statement of changes in equity, in the statement of cash flows and in the corresponding notes are not fully comparable.

Normally, financial statements are prepared uniformly, covering annual periods. However, certain entities prefer to report, for practical reasons, on different time intervals, for example using financial years of 52 weeks. This Standard does not prevent such a practice, as it is unlikely that the resulting financial statements will differ significantly from those that would have been prepared for the full year.

The distinction between current and non-current

The entity shall present its current and non-current assets, as well as its current and non-current liabilities, as separate categories on the balance sheet, in accordance with paragraphs 57 to 67, except when the presentation based on the degree of liquidity provides relevant information. make it more reliable. When such an exception is applied, all assets and liabilities will be presented based, in general, on the degree of liquidity.

Regardless of the presentation method adopted, the entity will disclose - for each asset or liability heading, which is expected to be recovered or canceled in the twelve months after the balance sheet date or after this time interval - the expected amount to be received or paid., respectively, after twelve months have elapsed from the balance sheet date.

When the entity supplies goods or provides services, within a clearly identifiable operating cycle, the separation between current and non-current items, both in assets and liabilities on the balance sheet, will provide useful information when distinguishing the net assets of use continuous as working capital, of those used in long-term operations. This distinction will also serve to highlight both the assets that are expected to be carried out in the course of the normal cycle of exploitation, and the liabilities that must be settled in the same period of time.

For some entities, such as financial entities, the presentation of assets and liabilities in ascending or descending order of liquidity, provides reliable and more relevant information than the current presentation - non-current, because the entity does not supply goods or services within a clearly identifiable operating cycle.

Applying paragraph 51, the entity will be allowed to present some of its assets and liabilities using the current classification - non-current, and others in order of their liquidity, provided that this provides reliable and more relevant information. The need to mix the presentation bases could appear when an entity carries out different activities.

Information on the expected dates of realization of assets and liabilities is useful to assess the liquidity and solvency of the entity. IAS_32 requires the disclosure of information about the expiration dates of both financial assets and financial liabilities. Financial assets include trade debtor accounts and other accounts receivable, and financial liabilities include trade creditors and other accounts payable. Information about the dates of recovery and cancellation of non-monetary assets and liabilities, such as inventories and provisions, will also be useful, regardless of whether a distinction is made between current and non-current items on the balance sheet. This may be the case, for example,When the entity reports on the balances of inventories that it expects to carry out in a period exceeding twelve months from the balance sheet date.

Current assets

An asset will be classified as current when it meets any of the following criteria:

it is expected to be carried out, or it is intended to sell or consume, in the course of the entity's normal operating cycle; is held primarily for trading purposes; it is expected to be carried out within the period of twelve months after the balance sheet date; or it is cash or other means equivalent to cash (as defined in IAS_7_ Statement of Cash Flows), the use of which is not restricted, to be exchanged or used to settle a liability, at least within the twelve months following the balance sheet date.

All other assets will be classified as non-current.

In this Standard, the term "non-current" includes tangible, intangible and financial assets that are long-term in nature. The use of alternative descriptions is not prohibited as long as their meaning is clear.

The normal cycle of the operation of an entity is the period of time that elapses between the acquisition of tangible assets, which enter the production process, and the realization of products in the form of cash or cash equivalents. When the normal operating cycle of an entity is not clearly identifiable, it will be assumed to be 12 months. Current assets include assets (such as inventories and trade debtors) that are to be sold, consumed and realized, within the normal operating cycle, even when they are not expected to be realized within the twelve-month period from the balance sheet date..Current assets include assets that are primarily held for trading (financial assets belonging to this category are classified as financial assets that are held for trading in accordance with_IAS_39_ Financial Instruments: Recognition and Measurement) as well as the current part of non-financial assets. currents.

Current liabilities

A liability will be classified as current when it satisfies any of the following criteria:

it is expected to settle in the entity's normal operating cycle; is kept primarily for negotiation; must be settled within a twelve-month period from the balance sheet date; or the entity does not have the unconditional right to postpone the cancellation of the liability for at least twelve months following the balance sheet date.

All other liabilities will be classified as non-current.

Some current liabilities, such as trade creditors, and other accrued liabilities, whether for personnel costs or other operating costs, will form part of the working capital used in the entity's normal operating cycle. These items, related to operations, will be classified as current even if their maturity is going to occur beyond twelve months after the balance sheet date. The same normal operating cycle will apply to the classification of the entity's assets and liabilities. When the normal cycle of exploitation is not clearly identifiable, its duration is assumed to be twelve months.

Other types of current liabilities do not come from the normal operating cycle, but must be addressed because they mature within twelve months from the balance sheet date or are held primarily for trading purposes. Examples of this type are financial liabilities held for trading in accordance with_IAS_39, bank overdrafts or overdrafts, the current part of non-current liabilities, dividends payable, income taxes and other non-commercial accounts payable. Loans that provide long-term financing (that is, they are not part of the working capital used in the normal operating cycle), and that do not have to be settled after twelve months from the balance sheet date, will be classified as non-current liabilities.,subject to the conditions of paragraphs 65 and 66.

The entity will classify its financial liabilities as current when they must be settled within the twelve months following the balance sheet date, although:

the original term of the liability was a period greater than twelve months; and there is an agreement to refinance or restructure long-term payments, which has been concluded after the balance sheet date and before the financial statements are formulated.

If the entity had the expectation and, in addition, the power to renew or refinance some payment obligations at least during the twelve months following the balance sheet date, in accordance with the existing financing conditions, it will classify such obligations as non-current, even if when otherwise they would be canceled in the short term. However, when refinancing or renewal is not a faculty of the company (for example, if there is no agreement to refinance or renew), the deferral will not be taken into account, and the obligation will be classified as current.

When the entity defaults on a commitment acquired in a long-term loan contract on or before the balance sheet date, with the effect that the liability becomes enforceable at the will of the lender, such liability shall be classified as current, even if the lender would have agreed, after the balance sheet date and before the financial statements had been formulated, not to demand payment as a consequence of the breach. The liability will be classified as current because, at the balance sheet date, the entity does not have the unconditional right to defer the settlement of the liability for at least twelve months after the balance sheet date; however, the liability will be classified as non-current if the lender had agreed, on the balance sheet date, to grant a grace period that ends at least twelve months after this date,within which period the entity can rectify the default and during which the lender cannot demand immediate repayment With respect to loans classified as current liabilities, if any of the following events occurs between the balance sheet date and the date on which The financial statements are formulated, the entity will be obliged to disclose the corresponding information as events after the balance sheet date that do not imply adjustments, in accordance with IAS 10 Events after the balance sheet date:If any of the following events occurs between the balance sheet date and the date on which the financial statements are formulated, the entity will be obliged to disclose the corresponding information as events after the balance sheet date that do not imply adjustments, in accordance with_IAS_10_ Events after the balance sheet date:If any of the following events occurs between the balance sheet date and the date on which the financial statements are formulated, the entity will be obliged to disclose the corresponding information as events after the balance sheet date that do not imply adjustments, in accordance with IAS 10. Events after the balance sheet date:

long-term refinancing, rectification of the breach of the long-term loan agreement; and granting, by the lender, a grace period to rectify the breach of the long-term loan contract that ends at least twelve months after the balance sheet date.

Information to be disclosed on the balance sheet

The balance sheet will include, as a minimum, specific headings that contain the amounts corresponding to the following items, as long as they are not presented in accordance with paragraph 68A: (a) tangible fixed assets;

investment Property; intangible assets; financial assets (excluding those mentioned in sections (e), (h) and (i) below); investments accounted for applying the equity method; biological assets; stocks; Commercial debts and others bills to receive the pay; cash and other equivalent liquid means; Commercial debitors and other accounts payable; provisions; financial liabilities (excluding the amounts mentioned in sections (j) and (k) above); liabilities and assets for current taxes, as defined in_IAS_12_ Income tax;

deferred tax liabilities and assets, as defined in IAS_12; minority interests, presented within equity; and issued capital and reserves attributable to holders of equity instruments of the parent.

68A. The balance sheet will also include specific headings with the amounts corresponding to the following items:

the total assets classified as held for sale and the assets included in the disposable groups of elements, which have been classified as held for sale in accordance with the_NIIF_5 Non-current assets held for sale and discontinued activities; and the liabilities included in the disposable groups of items classified as held for sale in accordance with_IFRS_5.

Additional headings containing other items, as well as groupings and subtotals thereof, will be presented on the balance sheet, when such presentation is relevant for understanding the financial situation of the entity.

When the entity presents assets and liabilities separately on the balance sheet, depending on whether they are current or non-current, it will not classify the deferred tax assets (or liabilities) as current assets (or liabilities).

This Standard does not prescribe the order or the specific format for the presentation of the items. Paragraph 68 merely provides a list of items that are sufficiently different in nature or function to require a separate presentation on the balance sheet. Also:

Other headings will be added when the size, nature or function of an item or group of items is such that the separate presentation is relevant to understanding the financial situation of the entity.The names used and the ordering of the items or groups of items, They may be modified according to the nature of the entity and its transactions, in order to provide the information necessary for a global understanding of the financial situation of the entity. For example, a credit institution will modify the previous names in order to apply the specific requirements of the_NIC_30.

The decision to submit separate additional items will be based on an assessment of:

the nature and liquidity of the assets, the function of the assets within the entity; and the amounts, nature and term of the liabilities.

The use of different valuation bases for different classes of assets suggests that their nature or function differ and, consequently, that they should be presented in separate headings. For example, certain types of property, plant and equipment may be carried at historical cost or at their revalued amounts, in accordance with_IAS_16_ Property, plant and equipment.

Information to be disclosed on the balance sheet or in the notes

The entity will disclose, either in the balance sheet or in the notes, more detailed sub-classifications of the items that make up the balance sheet headings, classified in a manner appropriate to the activity carried out by the entity.

The detail provided in the sub-classifications will depend on the requirements contained in IFRS, as well as the nature, size and function of the amounts affected. The factors outlined in paragraph 72 will also be used to decide on the sub-classification criteria. The level of information provided will be different for each item, for example:

Property, plant and equipment items will be broken down by class, as established in IAS_16; accounts receivable will be broken down according to whether they come from commercial customers, related parties, advances and other items; inventories will be sub-classified, in accordance with la_NIC_2_ Inventories, in categories such as merchandise, raw materials, materials, work in progress and finished products, provisions will be broken down, so that those corresponding to provisions for employee benefits and the rest are shown separately; y Capital and reserves will be broken down into several classes, such as contributed capital, share premiums, and reserves.

The entity shall disclose, either on the balance sheet or in the notes, the following information:

(a) for each of the classes of shares or securities that constitute the capital:

the number of shares authorized for issue; the number of shares issued and fully paid up, as well as those issued but not yet fully paid up; the par value of the shares, or the fact that they have no par value; a reconciliation between the number of shares outstanding at the beginning and end of the year; the rights, privileges and restrictions corresponding to each class of shares, including those that refer to the restrictions affecting the receipt of dividends and the repayment of capital; the shares of the entity that are in their possession or that of their dependents or associates; andthe shares whose issue is reserved as a consequence of the existence of options or contracts for the sale of shares, describing the conditions and corresponding amounts; and

(b) a description of the nature and destination of each item of reserves that appears in equity.

An entity that does not have its capital divided into shares, such as the different associative or fiduciary formulas, will disclose information equivalent to that required in section a) of paragraph 76, showing the movements that have occurred, during the year, in each category of those that make up the net worth, and informing about the rights, privileges and restrictions that are applicable to each one.

Result of the excersice

All income or expense items recognized in the year will be included in the results of the same, unless a Standard or an Interpretation establishes otherwise.

Normally, all items of income or expense recognized in the year will be included in the result of the same. This includes the effects of changes in accounting estimates. However, there may be circumstances in which certain items could be excluded from income for the current year. IAS_8 deals with two such circumstances: correction of errors and the effect of changes in accounting policies.

Other Standards address the case of items that, complying with the definition of income or expense established in the Conceptual Framework, are normally excluded from income for the current year. Examples of these could be the revaluation reserves (see_IAS_16), the specific gains or losses arising from the translation of the financial statements of a business in foreign currency (see_IAS_21) and the gains or losses derived from the value review of financial assets available for sale (see_NIC_39).

Information to be disclosed in the income statement

The income statement will include, at least, specific headings with the amounts that correspond to the following items for the year:

ordinary income; financial expenses; participation in the profit or loss of associates and joint ventures that are accounted for using the equity method; income tax; A single amount that comprises the total of (i) the profit after tax from discontinued operations and (ii) the profit after tax that has been recognized by the measure at fair value less costs to sell or because of the alienation or disposition by other means of the assets or disposable groups of elements that constitute the interrupted activity; and (f) profit or loss.

The following items will be disclosed in the income statement, as distributions of income for the year:

profit for the year attributed to minority interests; and profit or loss for the year attributed to holders of equity instruments of the parent.

In the income statement, additional headings that contain other items, as well as groupings and subtotals thereof, will be presented when such presentation is relevant to understanding the financial performance of the entity.

The effects of the different activities, operations and events corresponding to the entity will differ in terms of their frequency, potential for losses or gains and predictability, so any information on the elements that make up the results will help to understand the performance achieved. in the year, as well as to make projections about future results. Additional items will be included in the income statement, or the denominations will be modified or rearranged, when necessary, to explain the elements that have determined this performance. The factors to consider in making this decision will include, among others, the materiality or relative importance, as well as the nature and function of the different components of income and expenses. For example,a credit institution will have to modify the denominations of the items to meet the specific requirements of the_NIC_30. Items of income and expenses will not be offset, unless the criteria in paragraph 32 are met.

The entity will not present, neither in the income statement nor in the notes, any item of income or expenses with the consideration of extraordinary items.

Information to be disclosed in the income statement or in the notes

When the income and expense items are material or have relative importance, their nature and amount will be disclosed separately.

Circumstances that would lead to separate disclosures of income and expense items include the following:

the reduction of the value of inventories to their net realizable value, or of the items of property, plant and equipment to their recoverable amount, as well as the reversal of such; a restructuring of the entity's activities, as well as the reversal of any provision made for to meet the costs of the same; disposals or dispositions by other means of items of property, plant and equipment; disposals or dispositions by other means of investments; (e) interrupted activities;

(f) cancellations of payments due to litigation; and (g) other reversals of provisions.

The entity will present a breakdown of expenses, using a classification based on the nature of the expenses or on the function they fulfill within the entity, depending on which one provides information that is reliable and more relevant.

Entities are advised to present the breakdown mentioned in paragraph 88 in the income statement.

Expense items will be presented with the relevant subclassification, in order to show the components, relative to financial performance, which may be different in terms of their frequency, potential for profit or loss and predictability. This information may be provided in either of the two alternative forms described below.

The first way is called the nature of expenses method. Expenses will be grouped in the income statement according to their nature (for example, depreciation, material purchases, transportation costs, employee benefits and advertising costs) and will not be redistributed according to the different functions that are developed in the bosom of the entity. This method is simple to apply, since it is not necessary to distribute operating expenses among the different functions carried out by the entity. An example of classification using the nature of expenses method is as follows:

The second way is called the function of expenses method or the "cost of sales" method, and consists of classifying expenses according to their function as part of cost of sales or, for example, expenses of sales. distribution or administration activities. Following this method, the entity will disclose, at least, its cost of sales independently of the other expenses. This type of presentation can provide users with more relevant information than that offered by presenting expenses by nature, but it must be borne in mind that the distribution of expenses by function may be arbitrary, and imply the making of subjective judgments. An example of a classification that uses the function expense method is as follows:

The entities that classify their expenses by function will disclose additional information on the nature of such expenses, which will include at least the amount of amortization expenses and the expense for employee benefits.

The choice of the specific form of breakdown, either by applying the expenses by nature method or the expenses by function, will depend both on historical factors and on the industrial sector where the entity is framed, as well as on the nature of the entity itself. herself. Both methods provide an indication of costs that may vary, directly or indirectly, with the level of sales or production of the entity. Because each of the presentation methods has advantages for different types of entities, this Standard requires management to select the presentation that it considers the most relevant and reliable. However, when the cost of sales method is used, and since information about the nature of certain expenses is useful in predicting cash flows,the submission of additional data on certain expenses by nature is required. In paragraph 93, the concept "employee benefits" has the same meaning as in IAS_19_ Employee benefits.

The entity will disclose, either in the income statement, in the statement of changes in equity, or in the notes, the amount of dividends whose distribution to holders of equity financial instruments has been agreed during the year, as well as the corresponding amount per share.

The entity will present a statement of changes in equity that will show:

the result of the exercise; each of the income and expense items for the year that, as required by other Standards or Interpretations, has been recognized directly in equity, as well as the total of those items; (c) the total income and expenses for the year (calculated as the sum of sections (a) and (b) above), showing separately the total amount attributed to the holders of equity instruments of the parent company and to interest minority; and

(d) for each of the components of equity, the effects of changes in accounting policies and correction of errors, in accordance with IAS_8.

The entity will also present, in the statement of changes in equity or in the notes:

the amounts of the transactions that the holders of equity instruments have carried out in their capacity as such, showing separately the distributions agreed for them; the balance of the accumulated profit reserves (whether positive or negative amounts) at the beginning of the year and on the balance sheet date, as well as the movements of the same during the year; and (c) a reconciliation between the amounts in the books, at the beginning and at the end of the fiscal year, for each class of contributed equity and for each class of reserves, reporting separately each movement in them.

Changes in the entity's net worth, between two consecutive balance sheets, will reflect the increase or decrease suffered by its net assets. If the changes produced by the operations with the holders of equity financial instruments, acting in their capacity as such (such as capital contributions, repurchases by the entity of its own equity instruments and the dividends) and the costs of these transactions, the variation experienced by the value of equity will represent the total amount of income and expenses, including losses or gains, generated by the activities of the entity during the year (regardless of whether such Expenses and income items have been recognized in profit or loss for the year,or if they have been treated directly as changes in equity).

This Standard requires that all items of expenses and income, recognized in the year, be included in the income statement, unless another Standard or Interpretation requires otherwise. Other Standards require that certain gains or losses (for example, revaluation reserves, certain exchange differences and gains or losses derived from the revision of the value of financial assets available for sale, and the corresponding amounts of current and deferred taxes), are recognized directly as changes in equity. Since it is important to take into account all income and expenses when evaluating changes in the entity's financial position between two consecutive balance sheets, the Standard requires the presentation of a statement of changes in equity,where the total expenses and income are shown, including in them the amounts that have been recognized directly in the equity accounts.

IAS_8 requires retroactive adjustments when making changes in accounting policies, to the extent that they are practicable, except when the transitory provisions in another Standard or Interpretation establish otherwise. The_NIC_8_ also requires that the correction of errors be made retroactively, to the extent that these corrections are practicable. Retroactive adjustments and corrections will be made against the balance of retained earnings reserves, unless another Standard or Interpretation requires the retroactive adjustment of another component of equity. Section (d) of paragraph 96 requires disclosure of information in the statement of changes in equity, on the total adjustments of each of its components derived from changes in accounting policies and correction of errors,with expression separated from one and the other. Information on these adjustments will be disclosed for the beginning of the year, as well as for each prior year.

The requirements of paragraphs 96 and 97 may be met in different ways. One of them consists of presenting a columnar format where the beginning and ending balances of each item of equity are reconciled. An alternative method to the previous one is to present a statement of changes in equity that contains only the items required by paragraph 96. If the latter alternative is used, the items required in paragraph 97 will be presented in the notes.

Information on cash flows provides users with the basis for evaluating the entity's ability to generate cash and other equivalent liquid means, as well as the entity's needs for the use of those cash flows. IAS_7_ Statement of cash flows establishes certain requirements for the presentation of the statement of cash flows, as well as other information related to it.

Structure 103. The notes are:

present information about the bases for preparing the financial statements, as well as the specific accounting policies used in accordance with paragraphs 108 to 115; disclose the information that, being required by IFRS, is not presented in the balance sheet, in the income statement, or in the statement of changes in equity or in the statement of cash flows; and will provide additional information that, not having been included in the balance sheet, in the income statement, in the statement of changes in equity or in the statement of cash flows, is relevant for the understanding of any of them.

Notes will be presented, to the extent practicable, in a systematic way. Each item on the balance sheet, the income statement, the statement of changes in equity and the statement of cash flows will contain a cross reference to the corresponding information within the notes.

Typically, the notes will be presented in the following order, in order to help users understand financial statements and compare them with those presented by other entities:

a statement of compliance with IFRS (see paragraph 14); a summary of the significant accounting policies applied (see paragraph 108); supporting information for the items presented in the balance sheet, in the income statement, in the statement of income changes in equity and in the statement of cash flows, in the same order in which each of the statements and each of the items that compose them appear; and other disclosures, which will include: contingent liabilities (see IAS_37) and unrecognized contractual commitments; Mandatory non-financial information, for example the entity's financial risk management objectives and policies (see IAS_32).

In certain circumstances, it may be necessary or desirable to change the order of certain items within the notes. For example, information on changes in fair value, recognized in profit or loss, could be combined with information on the maturity of the corresponding financial instruments, although the first information refers to the income statement and the second is related to the balance. However, a systematic structure should be preserved to the extent practicable.

The notes that provide information about the bases for the preparation of the financial statements and the specific accounting policies may be presented as a separate component of the financial statements.

Disclosure of accounting policies

The entity shall disclose, in the summary containing the significant accounting policies:

the basis or bases for the preparation of the financial statements; and the other accounting policies used that are relevant to understanding the financial statements.

It is important for users to be informed about the basis used in the financial statements (for example: historical cost, current cost, net realizable value, fair value or recoverable amount), since those bases, on which the financial statements are prepared, significantly affect your ability to analyze.

When more than one valuation basis has been used in preparing the financial statements, for example if only certain classes of assets have been revalued, it will be sufficient to provide an indication regarding the categories of assets and liabilities to which each has been applied. valuation basis.

In deciding whether a particular accounting policy should be disclosed, management will consider whether such disclosure could help users understand how transactions and other events and conditions have been reflected in financial position and performance information. The disclosure of information about particular accounting policies will be especially useful for users when these policies have been selected from among the alternatives allowed in the Standards and Interpretations. An example would be the information to be disclosed on whether the joint venturer recognizes its interests in a jointly controlled entity applying proportionate consolidation or the equity method (see_IAS_31_ Interests in joint ventures).Some Standards specifically require the disclosure of information about certain accounting policies, including choices made by management among the different permitted policies. For example, IAS_16 requires disclosure of information about the valuation bases used for each of the classes of property, plant and equipment. IAS_23_ Borrowing costs requires disclosure of whether interest costs have been immediately recognized as an expense, or have been capitalized as part of the cost of qualifying assets.IAS_16 requires disclosure of information about the valuation bases used for each of the classes of property, plant and equipment. IAS_23_ Borrowing costs requires disclosure of whether interest costs have been immediately recognized as an expense, or have been capitalized as part of the cost of qualifying assets.IAS_16 requires disclosure of information about the valuation bases used for each of the classes of property, plant and equipment. IAS_23_ Borrowing costs requires disclosure of whether interest costs have been immediately recognized as an expense, or have been capitalized as part of the cost of qualifying assets.

Each entity will consider the nature of its exploitation, as well as the policies that the user of its financial statements would like to see disclosed for that specific type of entity. For example, in the case of an entity subject to income taxes, it might be expected to disclose the accounting policies followed in this regard, including deferred tax assets and liabilities. When an entity has a significant number of business or transactions in foreign currency, it could be expected to report on the accounting policies followed for the recognition of gains and losses due to exchange differences. When a business combination has been carried out, the policies used for the valuation of goodwill and minority interests will be disclosed.

An accounting policy could be significant because of the nature of the entity's operation, even if the amounts affected in the current or previous year were not material. It will also be appropriate to disclose information about each significant accounting policy that is not specifically required by IFRS, but has been selected and applied in accordance with IAS_8.

Whenever they have a significant effect on the amounts recognized in the financial statements, the entity shall disclose, either in the summary of significant accounting policies or in other notes, judgments - other than those relating to estimates (see paragraph 116) - That the management has done when applying the accounting policies of the entity.

In the process of applying the entity's accounting policies, management will make various judgments, different from those related to estimates, which can significantly affect the amounts recognized in the financial statements. For example, management will make judgments to determine:

whether certain financial assets are held-to-maturity investments; when all significant risks and rewards of the owners of financial assets and leased assets have been transferred to other entities, substantially; whether, due to their economic background, certain sales of goods are financing arrangements and consequently do not generate revenue; and if the economic background of the relationship between the entity and a special purpose entity indicates that the latter is controlled by the entity.

Some of the information to be disclosed in accordance with paragraph 113 will also be required by other Standards. For example, IAS_27 requires the entity to disclose the reasons why the ownership interest does not imply control, with respect to an investee that is not considered a dependent, even if the entity owns, directly or indirectly through other subsidiaries, more than half of your actual or potential voting rights. The_NIC_40 will require, when the classification of a certain investment presents difficulties, to disclose information about the criteria developed by the entity to distinguish real estate investments from properties occupied by the owner, as well as from properties held for sale in the ordinary course of business. the operations.

Key principles for estimating uncertainty

The entity will disclose in the notes, information on the key assumptions about the future, as well as the keys for estimating the uncertainty at the balance sheet date, provided that they are associated with a significant risk that involves material changes in the value of assets or liabilities within the next fiscal year. With respect to such assets and liabilities, the notes should include information on:

his, her nature; and its carrying amount on the balance sheet date.

Determining the book value of some assets and liabilities will require an estimate, on the balance sheet date, of the effects arising from uncertain future events on such assets and liabilities. For example, in the absence of recently observed market prices, which are used to value assets and liabilities, it will be necessary to make estimates about the future when it is necessary to value the recoverable amount of the different classes of fixed assets, the effect of technological obsolescence on inventories, provisions conditioned by future outcomes of ongoing litigation and long-term employee compensation liabilities, such as pension obligations.These estimates are based on assumptions about variables such as the risk-adjusted cash flows or the discount rates used, the expected evolution in wages or changes in prices that affect other costs.

The key assumptions and other essential aspects considered when estimating the uncertainty, which must be disclosed in accordance with paragraph 116, refer to the estimates that offer greater difficulty, subjectivity or complexity in the judgment for management. As the number of variables and assumptions that affect the possible future resolution of uncertainties increases, the judgments will become more subjective and complex, and the probability of material changes in the value of assets or liabilities will normally increase. in parallel form.

The disclosures in paragraph 116 will not be necessary for assets and liabilities that are associated with a significant risk as they imply significant changes in their value within the next year if, at the balance sheet date, they are measured at fair value, based on recent observations. of market prices (their fair values could undergo significant changes in the course of the next year, but such changes cannot be conceived from the assumptions or other principles of estimation of uncertainty at the balance sheet date).

The disclosures in paragraph 116 are presented in a way that helps users of financial statements to understand the judgments made by management about the future and about other key principles in estimating uncertainty. The nature and scope of the information provided will vary according to the type of event, or other circumstances. Examples of the types of information to be disclosed are as follows:

the nature of the assumption or other estimate of the uncertainty; the sensitivity of the carrying amount to the methods, assumptions and estimates implicit in its calculation, including the reasons for such sensitivity; the expected resolution of the uncertainty, as well as the range of consequences reasonably possible within the next year, with respect to the carrying amount of the assets and liabilities affected; and in the event that the above uncertainty remains unresolved, an explanation of the changes made in the past assumptions regarding the related assets and liabilities.

In making the disclosures in paragraph 116, it is not necessary to disclose budget information or forecasts.

When, at the balance sheet date, it is impractical to disclose the nature and extent of the possible effects of an assumption or other key criteria in estimating uncertainty, the entity shall report that it is reasonably possible, based on existing knowledge, that the outcomes that are different from the assumptions, in the next year, could require significant adjustments in the carrying amount of the affected asset or liability. In any event, the entity will disclose the nature and carrying amount of the specific asset or liability (or the class of assets or liabilities) affected by the event.

The disclosures in paragraph 113, about the particular judgments made by management in the process of applying the entity's accounting policies, are not related to the disclosures about the key uncertainty estimation principles provided in the paragraph 116.

The information to be disclosed on any of the key assumptions, which would otherwise be required in accordance with paragraph 116, will also be required in other Standards. For example, IAS_37 requires disclosure, in specific circumstances, of the main assumptions about future events that affect the different classes of provisions. IAS_32 requires disclosure of the significant assumptions applied in estimating the fair value of financial assets and financial liabilities, which are recorded at fair value. IAS_16 requires disclosure of the significant assumptions applied in estimating the fair value of revalued property, plant and equipment.

Other Disclosures 125. The entity will disclose in the notes:

the amount of dividends proposed or agreed before the financial statements have been formulated, which have not been recognized as a distribution to holders of equity instruments during the year, as well as the corresponding amounts per share; and the amount of any cumulative preferred dividend that has not been recognized.

The entity will report the following, if not disclosed elsewhere, within the information published with the financial statements:

the domicile and legal form of the entity, as well as the country in which it has been incorporated and the address of its registered office (or the main domicile where it carries out its activities, if different from the registered office); a description of the nature of the entity's operation, as well as its main activities; and (c) the name of the direct parent entity and the ultimate parent of the group.

EFFECTIVE DATE

The entity will apply this Standard in annual periods beginning on or after January 1, 2005. Early application is advised. If an entity applies this Standard for a period beginning before January 1, 2005, it shall disclose this fact.

REPEAL OF THE_NIC_1 (REVISED IN 1997)

This Standard replaces the_IAS_1_ Presentation of financial statements revised in 1997.

Modifications of other pronouncements

A1. In the International Financial Reporting Standards, which include the International Accounting Standards and Interpretations, which are applicable as of December 2003:

the expression "net profit and loss" is replaced by "profit or loss", the expression "notes to the financial statements" is replaced by "notes"; and (c) the term "share capital" is replaced by "contributed capital."

A2.

A3. Paragraphs 69 and 70 of IAS_12_ Income tax are eliminated.

A4. In_IAS_19_ Employee benefits, paragraph 23 is amended to read as follows: 23. Although this Standard does not require the presentation of specific disclosures about short-term employee benefits, other Standards may require this type of information to be disclosed. For example, according to IAS_24 Related Party Disclosure, the entity is required to disclose certain information about the remuneration of key management personnel. In the_NIC_1_ Presentation of financial statements, it is obliged to disclose information on personnel expenses.

TO 5.

A6. La_NIC_34_ Interim financial information is modified as described below. Paragraph 5 is modified, which now reads as follows:

La_NIC_1 defines a set of complete financial statements, containing the following components:

balance sheet; income statement; a statement showing: either all changes in equity; or changes in equity other than those arising from transactions with the owners thereof, when they act as such; (d) statement of cash flows; and

(e) notes, which include a summary of significant accounting policies and other explanatory notes.

Paragraph 12 is modified, which now reads as follows:

Guidance on the structure of financial statements is given in IAS_1. The Implementation Guide of IAS_1 contains examples of how the balance sheet, income statement and statement of changes in equity can be presented.

Paragraph 13 is modified, which now reads as follows:

Although IAS_1 requires that a statement showing changes in equity be presented separately within the entity's financial statements, it allows information about changes in equity arising from transactions with equity owners., in their capacity as such, are shown in the body of the statement or, alternatively, within the notes. When presenting the statement of changes in equity within the interim information, the entity will follow the same format that it has used in its most recent annual financial statements.

A7. Paragraphs 39 and 40 of IAS_35_ Discontinued activities are amended which are now as follows:

All the disclosures required by paragraphs 27 to 37 can be presented, either in the body of the financial statements (balance sheet, income statement or statement of changes in equity) or in the notes, except with regard to the amount of pre-tax gains or losses recognized for the disposal or disposal by other means of assets and for the reimbursement of liabilities attributable to discontinued activities, according to section (a) of paragraph 3. La_NIC_1_ Presentation of financial statements obliges to present, in the income statement, the losses or gains before taxes recognized for the sale or disposal by other means of assets and for the reimbursement of liabilities attributable to discontinued activities.It is recommended that the disclosures required by sections (f) and (g) of paragraph 27 be presented in the income statement and in the statement of cash flows, respectively.

A8.

A9. La_NIC_41_ Agriculture is modified as described below.

Paragraph 39 is deleted.

Paragraph 53 is amended, which now reads as follows:

Agricultural activity is often exposed to natural hazards such as those related to weather or disease. If an event of this type occurs, which gives rise to an item of expenses or income with relative importance, the nature and amount of the same will be disclosed, in accordance with the provisions of the_NIC_1_ Presentation of financial statements. Examples of events cited include the declaration of a virulent disease, floods, severe droughts or frosts, and insect pests.

A10.

A11. Paragraph 5 of the_Sic – 32 Intangible Assets - Website Costs is modified, which now reads as follows:

This Interpretation shall not apply to expenditures for the acquisition, development, and exploitation of the hardware equipment (ie, Web servers, platform servers, production servers, and Internet connections) of a Web site. Such disbursements will be accounted for as established in IAS_16. Additionally, when the entity incurs disbursements to obtain the Internet hosting service from the entity's website, the disbursements will be recognized as an expense when the services are received, according to paragraph 78 of IAS_1 and the Conceptual Framework.

Taken from Commission Regulation (EC) No 2238/2004 of December 29, 2004 amending Regulation (EC) No 1725/2003 by which certain International Accounting Standards are adopted in accordance with Regulation (EC) No 1606 / 2002 of the European Parliament and of the Council regarding International Financial Reporting Standards (IFRS)

See IAS 08

See IFRS 05

This IAS 35 was repealed by IFRS 05

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