MUHAMMAD USMAN +92-3076216304

1. Hailey College of Commerce
University Of The Punjab
Projectof
Application of IAS 1 & IAS 2
IBNE SHABEER FOOD (PVT) LTD.
Submitted Tto
Professor. Waqar Hassan Randhawa Sahib
Submitted By:
Mansoor Nisar (MC14-283)
Muhammad Usman (MC14-263

2. Introduction:
Our company makes the food items like milk, biscuits,
yogurt etc. The food industry is a complex, global
collective of diverse businesses that supply much
of the food and food energy consumed by the
world population. Only subsistence farmers, those
who survive on what they grow, can be considered
outside of the scope of the modern food industry.
It has the five branches in the big cities of Pakistan and
3000 active employees in all five heads and the
company is pubic limited and apply all the rules under
the SECP and also registered under this regulatory
authority. And follows the IFRS and IAS (Accounting
standards).
Vision

3. To be a leader in the market we serve by providing
quality products to our consumers while learning from
their feedback to set even higher standards.
To be a company that continuously enhances its
superior technological skills to remain locally
competitive in this day and age of increasing
challenges.
To be a company that attracts and retains competent
people by creating a culture that fosters innovation,
promotes individual growth and rewards initiative and
performance.
 To be a company that fulfills its social responsibility.
MISSION
 To sell delicious and remarkable food items.
 That the food and drink we sell meets the
highest standards of quality.
To consistently provide our customers with
impeccable service by demonstrating warmth,
graciousness, efficiency professionalism and
integrity in our work.

4. Application of International Financial Reporting
Standards conceptual Frame work, IAS
1(Presentation of financial statements) and IAS
2(Inventory):
Assumptions:
The accounts have been prepared on these assumptions that
company records all transactions on the accrual basis:
Accrual basis:
As we recognize the transactions as they occur irrespective of the
whether the cash or cash equivalent is received or not.
Going Concern:
As the accounts have been prepared on the going concern
basis not on liquidation basis as not the company is curtailing
its major part of its business not and continuing its operation
foreseeable future. As the profit of the company has been
increase from the previous year as mentioned in the
statement of financial performance of the company.

5. IBNE SHABEER FOOD (PVT) LTD.
BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31ST
, 2015

6. IBNE SHABEER FOOD (PVT) LTD.
INCOME STATEMENT FOR YEAR ENDED DECEMBER 31ST
, 2015

7. IBNE SHABEER FOOD (PVT) LTD.
CASH FLOW STATEMENT

8. Materiality:
While continuing with ourefforts towards promotion of high quality education for training of
employees we contributed Rs. 1 Million to training and development program. And this
information is relevant so we disclose it.
Financial statements:/faithful representation:
The financial statements are complete, no doubt of error and without biasness. International
accounting standards have been followed.
Going Concern Test:
There is no significance doubt about the company’s ability to continue as going concern. As
the profit is more in 2015 and also earning per share is more.
Departure:
The company has not taken the departure as it is working under the IAS standards.
Comparability And verifiability:
The profit of the company in previous year(2014) is Rs. 15,000and now is Rs. 18,000 it
is comparable and verifiable. If there will be more difference then it would not
be comparable and verifiable.
*All the information has been mentioned in the
financial statements accounting records within the
specified time period as and relevant to that period
which shows the Timeliness.
And informationare easy to understand. For those who are the
users of this information.

9. Elements of financial statements
Assets:
These are the resources controlled by the entity and future economic benefits
are expected.
Current Assets:
Stores, spares and loose tools:
Usable stores, spares and loose tools are valued principally at moving average cost, while
items considered
obsolete are carried at nil value. Items in transit are valued at cost comprising invoice value
plus other
charges paid thereon.
Stock-in-trade:
Stock of raw materials, except for those in transit and finished goods are valued principally at
the lower of moving average cost and net realizable value. Cost of raw material signifies
average direct material cost.
Finished goods comprise cost of direct materials, labour and appropriate manufacturing
overheads. Materials in transit are stated at cost comprising invoice value plus other charges
paid thereon.
Net realizable value signifiesthe estimatedselling price in the ordinary course of business
less costs
Necessarily to be incurred in order to make a sale.
 Property plant and equipment is the fixed asset of the company and in the control
of the entity which will provide the future economic benefits to the entity. And has
been written in the balance sheet cost less accumulated depreciation.
 Subsequent cost is included in the asset carrying amount recognized as a separate
asset.
Intangible asset

10. Is the cost of computer software acquired and stated at cost less accumulated amortization.
Biological Assets:
These comprises of live stock and trees. And has been stated in the balance sheet at fair value
less estimated point of sale cost.
Liabilities:
These are the present obligation of the entity from which outflow from the entity is expected.
Borrowing are classified as the current liability unless the company unconditional rights to
deferred settlement of liability. And other liabilities also has been mentioned fairly.
Owner Equity:
It is the residual interest of in the asset of the company after deducting all its liability.
Ordinary shares are classified as equity and recognized at their face value.
Dividend distributed to the members are recognized as the liability of the company in the
period at which these are distributed.
And the complete financial statement show the true and fair view as per standards and shows
faithful representation.
Profit & loss A/c
Income:
Increases in economic benefits during the accounting period in the form of inflows or
enhancements of assets or decreases of liabilities that result in increases in equity, other than
those relating to contributions from equity participants.
Expenses”

11. Decreases in economic benefits during the accounting period in the form of outflows or
depletions of assets or incurrence’s of liabilities that result in decreases in equity, other than
those relating to distributions to equity participants.
And all these are stated according to the accounting standards in the
profit and loss account.
Recognition criteria:
All the items of the financial statement have been recognized on the basis of that these can
be measured in monetary terms and reliably. And future economic benefit will inflow or
outflow from the entity.
Presentation of financial statements
Comparative Information:
Information in the profit and loss account and in balance sheet has been described in
comparative form as 2015 and 2014 to show the reliability and verification of the previous
year profit and balance of the balance sheet of the last year.
Materiality and Aggregation:
 A transaction that is first documented (onto a source document).
 The document is then journalized (in subsidiary journals).
 The journal is then posted (into the subsidiary and general ledger).
 The ledger is summarized into the trial balance.
 The trial balance is summarized into the detailed set of financial statements – a
summary used by internal users (e.g. management).
Segregation:
Any item which is material has been disclosed separately which is material. As contribution
made by the company for training of employees.
Offsetting of financial assets and financial liabilities:
Financial assets and financial liabilities are offset and the net amount is reported in the
financial

12. Statements only when there is a legally enforceable right to set off the recognized amount
and the company intends either to settle on a net basis or to realize the assets and to settle
the liabilities simultaneously.
Reclassification of assets:
IAS 1 (amendment), ‘Financial statement presentation’ regarding other comprehensive
income is effective for periods. It requires entities to group items presented in ‘other
comprehensive income’ (OCI) on the basis of whether they are potentially
reclassifiable to profit or loss subsequently (reclassification adjustments). The amendments
do not address which items are
Presented in OCI. This does not have a material impact on company’s financial statements.
Consistency of presentation
There is consistency in the principal of the accountings as depreciation has been charged on
straight line method and no changes has been made in the method of depreciation and this
method we are using from three or four years previousely.
Frequency of reporting:
As per standard we disclose our accounts in the financial statement for the period of (52)
fifty two weeks and our year starts from 1st January and ends on 31st December.
And no change the accounting period during the life of the business.