PART 1: Presentation of financial statements Comprehension questions What is the purpose of a statement of financial position? What comprises a complete set of financial statements in accordance with AASB 101/IAS 12 What are the major limitations of a statement of financial position as a source of information for users of general purpose financial statements? Application and analysis exercises Fair presentation The directors of an Australian company that is required to prepare financial reports under the Corporations Act conclude that applying the requirements of AASB 136/IAS 36 Impairment of Assets would not provide a fair presentation because the resulting $80 000 impairment loss is temporary. Required Advise the directors how this problem should be addressed in the financial statements in accordance with AASB 101/IAS 1