Guide to annual financial statements – Disclosure checklist

Disclosure

checklist

Guide to annual financial statements

IFRS?

October 2016

ifrs

Contents

About this guide

1

References and abbreviations

3

The checklist

4

1

General presentation

1.1

1.2

1.3

1.4

1.5

1.6

2

3

4

4

17

18

23

29

Statement of financial position

48

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

2.10

2.11

2.12

48

49

51

53

56

72

72

74

78

79

80

82

Property, plant and equipment

Intangible assets and goodwill

Investment property

Associates and joint arrangements

Financial instruments

Inventories

Biological assets

Impairment of non-financial assets

Equity

Provisions

Income taxes

Contingent assets and liabilities

32

38

43

44

46

Statement of profit or loss and OCI

84

3.1

3.2

3.3

3.4

3.5

84

84

85

90

93

Revenue

Government grants

Employee benefits

Share-based payments

Borrowing costs

Special topics

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

4.10

5

4

Presentation of financial statements

Changes in equity

Statement of cash flows

Basis of accounting

Fair value measurement

Consolidated and separate financial

statements

1.7 Business combinations

1.8 Foreign currency translation and

hyperinflation

1.9 Accounting policies, errors and estimates

1.10 Events after the reporting period

Leases

Service concession arrangements

Operating segments

Earnings per share

Non-current assets held for sale or held for

distribution

Related party disclosures

Investment entities

Insurance contracts

Extractive activities

Common control transactions and Newco

formations

94

94

96

97

101

103

104

111

113

117

118

First-time adoption of IFRS

119

5.1 First-time adoption of IFRS

5.2 Regulatory deferral accounts and first-time

adoption of IFRS

119

121

6

Voluntary early adoption of IFRSs

127

6.1 Disclosure Initiative (Amendments to IAS 7)

6.2 Recognition of Deferred Tax Assets for

Unrealised Losses (Amendments to IAS 12)

6.3 IFRS 15 Revenue from Contracts with

Customers

6.4 IFRS 9 Financial Instruments (2014)

6.5 IFRS 9 Financial Instruments (2013)

6.6 IFRS 9 Financial Instruments (2010)

6.7 IFRS 9 Financial Instruments (2009)

6.8 IFRS 9 Financial Instruments (own credit

requirements)

6.9 Classification and Measurement of

Share-based Payment Transactions

(Amendments to IFRS 2)

6.10 IFRS 16 Leases

127

Appendix

New standards or amendments for 2016 and

forthcoming requirements

Keeping in touch

128

128

133

160

182

201

219

221

222

226

226

228

About this guide

This guide has been produced by the KPMG International Standards Group (part

of KPMG IFRG Limited) and the views expressed herein are those of the KPMG

International Standards Group.

It is intended to help preparers in the preparation and presentation of financial

statements in accordance with IFRS by identifying the potential disclosures

required. In addition, it includes the minimum disclosures required in the financial

statements of a first-time adopter of IFRS.

Standards covered

This guide is based on standards and interpretations that have been issued by

the IASB as at 15 August 2016 and that are required to be applied by an entity

with an annual reporting period beginning on 1 January 2016 (¡®currently effective

requirements¡¯). Section 6 identifies disclosure requirements based on standards

that are effective for annual reporting periods beginning after 1 January 2016

(¡®forthcoming requirements¡¯) and that are available for voluntary early adoption.

This guide contains disclosures only. It does not specify the scope of individual

standards referred to or their recognition and measurement requirements, or

explain the terms that are used in IFRS and contained in this guide. Nor does it

cover IAS 26 Accounting and Reporting by Retirement Benefit Plans or IAS 34

Interim Financial Reporting. The disclosures required by IAS 34 are set out in our

Guide to condensed interim financial statements ¨C Disclosure checklist.

In addition, IFRS and its interpretation change over time. Accordingly, this guide

should not be used as a substitute for referring to the standards and other relevant

interpretative guidance.

Preparers should also consider applicable local legal and regulatory requirements.

This guide does not consider the requirements of any particular jurisdiction ¨C

e.g. IFRS does not require the presentation of separate financial statements for

the parent entity. Consequently, this guide includes only consolidated financial

statements.

What¡¯s new in 2016?

The appendix to this guide provides a comprehensive list of new requirements,

distinguishing between those that are effective for an entity with an annual

reporting period beginning on 1 January 2016, and those with a later effective date.

As a result of these new requirements, this guide includes updated disclosures

in respect of acquisitions of interests in joint operations, presentation of financial

statements, regulatory deferral accounts and bearer plants.

Need for judgement

This guide is part of our suite of publications ¨C Guides to financial statements ¨C and

specifically focuses on compliance with IFRS. The preparation and presentation of

financial statements require the preparer to exercise judgement, in terms of the

choice of accounting policies, the ordering of notes to the financial statements,

how the disclosures should be tailored to reflect the reporting entity¡¯s specific

circumstances, and the relevance of disclosures considering the needs of users.

Materiality

Specific guidance on materiality and its application to the financial statements is

included in paragraphs 29¨C31 of IAS 1 Presentation of Financial Statements.

Materiality is relevant to the presentation and disclosure of the items in the financial

statements. Preparers need to consider whether the financial statements include

all of the information that is relevant to understanding an entity¡¯s financial position

on the reporting date and its financial performance during the reporting period.

Copyright ? IFRS Foundation. All rights reserved. Reproduced by KPMG IFRG Limited with the permission of the IFRS Foundation?.

Reproduction and use rights are strictly limited. No permission granted to third parties to reproduce or distribute.

2 | Guide to annual financial statements ¨C Disclosure checklist

Preparers also need to take care not to reduce the understandability of an entity¡¯s

financial statements by obscuring material information with immaterial information

or by aggregating material information that is different by nature or function.

Individual disclosures that are not material to the financial statements do not have

to be presented ¨C even if they are a minimum requirement of a standard. Preparers

need to consider the appropriate level of disclosure based on materiality for the

reporting period.

Organisation of the

text

This guide is arranged by topic. It is designed to provide all of the IFRS disclosures

that may be required for a set of annual financial statements when completed in its

entirety. Disclosures that relate to more than one topic may not always be repeated

under each relevant topic. For example, the requirement to disclose accounting

policies adopted for the recognition of revenue is included in Chapter 1.4 ¡®Basis of

accounting¡¯, but not repeated in Chapter 3.1 ¡®Revenue¡¯.

Copyright ? IFRS Foundation. All rights reserved. Reproduced by KPMG IFRG Limited with the permission of the IFRS Foundation?.

Reproduction and use rights are strictly limited. No permission granted to third parties to reproduce or distribute.

References and abbreviations | 3

References and abbreviations

References are included in the left-hand margin of this guide to identify any relevant

paragraphs of the standards or our publication Insights into IFRS.

IAS 1.51

Paragraph 51 of IAS 1.

Insights 4.1.190.10

Paragraph 4.1.190.10 of the 13th edition 2016/17 of our

publication Insights into IFRS.

Major change since the 2015 edition of this guide.

The following abbreviations are used often in this guide.

NCI

Non-controlling interests

OCI

Other comprehensive income

Copyright ? IFRS Foundation. All rights reserved. Reproduced by KPMG IFRG Limited with the permission of the IFRS Foundation?.

Reproduction and use rights are strictly limited. No permission granted to third parties to reproduce or distribute.

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