2019 Example Financial Statements - Audit, Tax & advisory ...

IFRS

Assurance

IFRS Example Global

Consolidated Financial Statements 2019

with guidance notes

Contents

Introduction1 19 Cash and cash equivalents

61

IFRS Example Consolidated Financial Statements

3 20Disposal groups classified as held for sale and

61

discontinued operations

Consolidated statement of financial position

4 21 Equity

63

Consolidated statement of profit or loss

6 22 Employee remuneration

65

Consolidated statement of comprehensive income

7 23 Provisions

71

Consolidated statement of changes in equity

8 24 Trade and other payables

72

Consolidated statement of cash flows

9 25 Contract and other liabilities

72

Notes to the IFRS Example Consolidated

10 26Reconciliation of liabilities arising from

73

Financial Statements

financing activities

1 Nature of operations

11 27 Finance costs and finance income

73

2General information, statement of compliance

11 28 Other financial items

74

with IFRS and going concern assumption

29 Tax expense

74

3 New or revised Standards or Interpretations

12 30 Earnings per share and dividends

75

4 Significant accounting policies

15 31Non-cash adjustments and changes in

76

5 Acquisitions and disposals

33

working capital

6 Interests in subsidiaries

37 32 Related party transactions

76

7 Investments accounted for using the equity method

8 Revenue 9 Segment reporting 10 Goodwill 11 Other intangible assets 12 Property, plant and equipment 13 Leases

39 33 Contingent liabilities

78

34 Financial instruments risk

78

41 35 Fair value measurement

85

42 36 Capital management policies and procedures

89

46 37 Post-reporting date events

90

47 38 Authorisation of financial statements

90

49 Appendices to the IFRS Example Consolidated

91

50 Financial Statements

14 Investment property 15 Financial assets and liabilities

52 Appendix A: Organising the statement of profit

92

53 or loss by function of expenses

16 Deferred tax assets and liabilities 17 Inventories 18 Trade and other receivables

59 Appendix B: Statement of comprehensive income

94

60 presented in a single statement

60 Appendix C: Effective dates of new IFRS Standards

96

Important Disclaimer: This document has been developed as an information resource. It is intended as a guide only and the application of its contents to specific situations will depend on the particular circumstances involved. While every care is taken in its presentation, personnel who use this document to assist in evaluating compliance with International Financial Reporting Standards should have sufficient training and experience to do so. No person should act specifically on the basis of the material contained herein without considering and taking professional advice.

`Grant Thornton' refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton International Ltd (GTIL) and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another's acts or omissions. Neither GTIL nor any of its personnel nor any of its member firms or their partners or employees, accept any responsibility for any errors this document might contain, whether caused by negligence or otherwise, or any loss, howsoever caused, incurred by any person as a result of utilising or otherwise placing any reliance upon it.

Introduction

IFRS Example Consolidated Financial Statements 2019

The preparation of financial statements in accordance with International Financial Reporting Standards (`IFRS') is challenging. Each year, new Standards and amendments are published by the International Accounting Standards Board (`IASB') with the potential to significantly impact the presentation of a complete set of financial statements.

The member firms of Grant Thornton International Ltd (`GTIL') have extensive expertise in the application of IFRS. GTIL, through its IFRS Team, develops general guidance that supports its member firms' commitment to high quality, consistent application of IFRS and is therefore pleased to share these insights by publishing `IFRS Example Consolidated Financial Statements 2019' (`Example Financial Statements').

The Example Financial Statements are based on the activities and results of Illustrative Corporation and its subsidiaries (`the Group') ? a fictional consulting, service and retail entity that has been preparing IFRS financial statements for several years. The form and content of IFRS financial statements depend on the activities and transactions of each reporting entity. Our objective in preparing the Example Financial Statements is to illustrate one possible approach to financial reporting by an entity engaging in transactions that are typical across a range of non-specialist sectors. However, as with any example, this illustration does not envisage every possible transaction and therefore cannot be regarded as comprehensive. Management is responsible for the fair presentation of financial statements and therefore may find other approaches more appropriate for its specific circumstances.

The Example Financial Statements have been updated to reflect changes in IFRS that are effective for the year ending 31 December 2019. No account has been taken of any new developments after 30 April 2019.

About us Grant Thornton is one of the world's leading organisations of independent assurance, tax and advisory firms. These firms help dynamic organisations unlock their potential for growth by providing meaningful, forward-looking advice. Proactive teams, led by approachable partners in these firms, use insights, experience and instinct to understand complex issues for privately owned, publicly listed and public sector clients and help them to find solutions. More than 53,000 Grant Thornton people, across over 135 countries, are focused on making a difference to clients, colleagues and the communities in which we live and work.

Illustrative Corporation Group: IFRS Example Consolidated Financial Statements ? 31 December 2019 1

Using the Example Financial Statements The Appendices illustrate an alternative presentation of the statement of profit or loss and the statement of comprehensive income and contain an overview of effective dates of new Standards.

For guidance on the Standards and Interpretations applied, reference is made to IFRS sources throughout the Example Financial Statements on the left-hand side of each page.

The Example Financial Statements do not address any jurisdictional or regulatory requirements in areas such as management commentary, remuneration reporting or audit reporting. They also do not take into account any specific economic situations around the world.

Most importantly, the Example Financial Statements are not to be used as a disclosure checklist as facts and circumstances vary between entities and each entity should assess individually which information to disclose in their financial statements.

`Most importantly, the Example Financial Statements are not to be used as a disclosure checklist as facts and circumstances vary between entities and each entity should assess individually which information to disclose in their financial statements.'

Grant Thornton International Ltd May 2019

2 Illustrative Corporation Group: IFRS Example Consolidated Financial Statements ? 31 December 2019

IFRS Example Consolidated Financial Statements

Illustrative Corporation Group 31 December 2019

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download