Contents chapter 1 – Preface to the Modified Cash Standard

MEASUREMENT
Measurement is the process of determining the monetary amounts for recognition and or recording in the financial statements at:

• Historical cost – amount of cash or cash equivalents received or paid for fair value for non-cash transactions;
• Fair value – amount for which an asset could be exchanged or liability settled between knowledgeable willing parties at arms length

CHAPTER 3 – Presentation of Financial Statements

OVERALL CONSIDERATIONS
Fair presentation and compliance with MCS
Financial statements are required to present fairly the financial position, financial performance and cash flows. Financial statements complying with MCS is presumed to result in fair presentation.
Going concern
Financial statements are prepared on a going concern basis (where significant doubt on ability to continue as going concern or meet obligations when due, uncertainties are disclosed).
Primary and secondary financial information
Primary financial information comprise of recognised revenue, expenses, assets and liabilities
Secondary financial information provides additional information about revenue, expenses, assets and liabilities that have been recorded but don’t qualify for recognition.
Presentation consistency
Retain presentation and classification from one period to the next.
Materiality and aggregation
Each material class of similar assets and items of dissimilar nature or function is to be presented separately.
Comparative information
At least one year of comparative information.
Offsetting
Offsetting of assets and liabilities or revenue and expenses are not permitted unless required or permitted by MCS or legislation.
COMPONENTS OF FINANCIAL STATEMENTS
A complete set of financial statements comprises:

• Statement of financial position
• Statement of financial performance
• Statement of changes in net assets
• Cash flow statement
• Appropriation statement
• Notes to the primary and secondary financial information, including of significant accounting policies

All statements are required to be presented with equal prominence.