Guide to annual financial statements – Disclosure checklist

IFRS

Guide to

annual financial

statements ¨C

Disclosure

checklist

LEASES

OFFSETTING

ACCOUNTING POLICIES

SHARE-BASED PAYMENT PERFORMANCE

CARRYING AMOUNT

U P D AT E

L OA N S B O R R O W I N G S

IMPAIRMENT

COST CONSOLIDATION

PENSION PROFIT OR LOSS IFRS

ASSUMPTIONS

REVENUE

DISCONTINUED OPERATIONS

PRESENTATION

ASSOCIATE

EPS

INVENTORIES

CAPITAL

ASSETS

CGU

NCI

GOODWILL ESTIMATES OFFSETTING OCI

CURRENT

TRANSACTIONS

LIABILITIES CONSOLIDATION

CASH EQUIVALENTS

SUBSIDIARY

EQUITY

OPERATING SEGMENTS

NON-CONTROLLING INTERESTS

PROVISIONS

DISCONTINUED OPERATIONS

JUDGEMENT

TRANSACTIONS

SHARE-BASED PAYMENT

FINANCIAL INSTRUMENTS ACCOUNTING POLICIES

FINANCIAL POSITION CASH FLOWS

FAIR PRESENTATION

2014

PROFIT OR LOSS

BUSINESS COMBINATIONS

STATEMENT

ANNUAL

PRESENTATION

FAIR VALUE

OCI

PERFORMANCE

ESTIMATES

BUSINESS COMBINATIONS

PRESENTATION

OPERATING SEGMENTS

IFRS

ASSETS

FAIR VALUE

CASH FLOWS

UNCONSOLIDATED STRUCTURED ENTITIES FINANCIAL POSITION

GOING CONCERN

DISPOSAL

FINANCIAL POSITION SHARE-BASED PAYMENT EPS JOINT ARRANGEMENTS DISCLOSURES HELD-FOR-SALE PENSION

ifrs

CHECKLIST

September 2014

DERIVATIVES

GROUP

IFRS

NOTES

JOINT

ARRANGEMENTS

FAIR VALUE MEASUREMENT ACCOUNTING POLICIES

CONTINGENCY RELATED PARTY

INTANGIBLE ASSETS

GOING CONCERN PERFORMANCE OFFSETTING

PROFIT OR LOSS MATERIALITY

ACQUISITION TAX

COMPARATIVE VALUATION UPDATE

MATERIALITY

PENSION

FAIR VALUE

Contents

About this guide

1

References and abbreviations

2

The checklist

3

1 General presentation

3

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

1.10

Presentation of financial statements

Changes in equity

Statement of cash flows

Basis of accounting

Fair value measurement

Consolidated and separate financial statements

Business combinations

Foreign currency translation and hyperinflation

Accounting policies, errors and estimates

Events after the reporting period

2 Statement of financial position

2.1 Property, plant and equipment

2.2 Intangible assets and goodwill

2.3 Investment property

2.4 Associates

2.5 Joint arrangements

2.6 Financial instruments

2.7 Inventories

2.8 Biological assets

2.9 Impairment of non-financial assets

2.10 Equity

2.11 Provisions

2.12 Income taxes

2.13 Contingent assets and liabilities

3 Statement of profit or loss and OCI

3.1

3.2

3.3

3.4

3.5

Revenue

Government grants

Employee benefits

Share-based payments

Borrowing costs

4 Special topics

4.1

4.2

4.3

4.4

4.5

Leases

Service concession arrangements

Operating segments

Earnings per share

Non-current assets held for sale or held for

distribution

4.6 Related party disclosures

4.7 Investment entities

4.8 Insurance contracts

4.9 Extractive activities

4.10 Common control transactions and Newco

formations

5 First-time adoption of IFRS

3

14

15

20

25

28

33

37

39

40

42

42

43

45

47

50

53

66

67

68

72

73

74

76

77

77

77

78

82

85

86

86

88

88

92

93

95

101

103

107

107

108

6 Voluntary early adoption of IFRSs

6.1 Annual Improvements to IFRSs 2010¨C2012 Cycle

6.2 IFRS 14 Regulatory Deferral Accounts

6.3 Agriculture: Bearer Plants (Amendments to

IAS 16 and IAS 41)

6.4 IFRS 15 Revenue from Contracts with

Customers

6.5 IFRS 9 Financial Instruments (2014)

6.6 IFRS 9 Financial Instruments (2013)

6.7 IFRS 9 Financial Instruments (2010)

6.8 IFRS 9 Financial Instruments (2009)

6.9 IFRS 9 Financial Instruments (own credit

requirements)

111

111

111

114

114

118

142

162

178

195

Appendix ¨C IFRSs that are effective for the first time

or are available for early adoption

197

Keeping you informed

199

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 helps you to prepare financial statements in accordance with IFRS by identifying the potential disclosures required.

Standards covered

This guide reflects IFRSs in issue at 10 August 2014. Sections 1 to 5 reflect disclosure requirements that are required to be

applied by an entity with an annual reporting period beginning on 1 January 2014 (¡®currently effective requirements¡¯). Section 6

identifies disclosure requirements based on standards that are effective for annual reporting periods beginning after 1 January

2014 (¡®forthcoming requirements¡¯) and that are available for voluntary early adoption.

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

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 interpretations themselves.

You should also have regard to applicable legal and regulatory requirements. This guide does not consider the requirements of

any particular jurisdiction.

What¡¯s new in 2014?

The Appendix provides a comprehensive list of new requirements, distinguishing between those that are effective for an annual

reporting period beginning on 1 January 2014, and those with a later effective date. As a result of these new requirements, this

guide includes updated disclosures in respect of investment entitiesa and the recoverable amount of non-financial assetsb.

Need for judgement

This guide is part of our suite of products ¨C Guides to financial statements ¨C and specifically focuses on compliance with IFRS.

The preparation of your own financial statements requires judgement, in terms of the choice of accounting policies, how the

disclosures should be tailored to reflect your specific circumstances, and the materiality of disclosures in the context of your

organisation.

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¡¯.

a. Amendments to IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 27 Separate Financial

Statements (see Chapters 1.3 ¡®Statement of cash flows¡¯, 1.4 ¡®Basis of accounting¡¯, 1.6 ¡®Consolidated and separate financial statements¡¯,

2.4 ¡®Associates¡¯, 2.5 ¡®Joint arrangements¡¯ and 4.7 ¡®Investment entities¡¯).

b. Amendments to IAS 36 Impairment of Assets (see Chapter 2.9 ¡®Impairment of non-financial assets¡¯).

The IASB material included in this work is Copyright ? of the IFRS Foundation?. All rights reserved. Reproduced by KPMG IFRG Limited with the permission of the IFRS Foundation?.

No permission granted to third parties to reproduce or distribute.

2 | Guide to annual financial statements ¨C Disclosure checklist

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 11th Edition 2014/15 of our publication Insights into IFRS.

Major change since the 2013 edition of this guide.

The following abbreviations are used often in this guide.

NCI

Non-controlling interests

OCI

Other comprehensive income

The IASB material included in this work is Copyright ? of the IFRS Foundation?. All rights reserved. Reproduced by KPMG IFRG Limited with the permission of the IFRS Foundation?.

No permission granted to third parties to reproduce or distribute.

1 General presentation 3

1.1 Presentation of financial statements??

The checklist

1

General presentation

1.1

Presentation of financial statements

Fair presentation

IAS 1.15

Present fairly the financial position, financial performance and cash flows of the entity in the

financial statements. Fair presentation requires the faithful representation of the effects of

transactions, other events and conditions in accordance with the definitions and recognition

criteria for assets, liabilities, income and expenses set out in the Conceptual Framework for

Financial Reporting (Framework). The application of IFRS, with additional disclosure when

necessary, is presumed to result in financial statements that achieve a fair presentation.

Financial statements not prepared on a going concern basis

IAS 1.25

When the financial statements are not prepared on a going concern basis, disclose:

a. the fact that the financial statements are not prepared on a going concern basis;

b. the basis on which the financial statements are prepared; and

c. the reason why the entity is not regarded as a going concern.

Insights 1.2.70.20

In our view, there is no general dispensation from the measurement, recognition and

disclosure requirements of IFRS even if an entity is not expected to continue as a going

concern.

Structure and content

IAS 1.10

IAS 1.10(a)

IAS 1.10(b)

IAS 1.10(c)

IAS 1.10(d)

IAS 1.10(e)

IAS 1.10(ea)

IAS 1.10(f), 40A

A complete set of financial statements comprises:

a. a statement of financial position as at the end of the period;

b. a statement of profit or loss and OCI for the period;

c. a statement of changes in equity for the period;

d. a statement of cash flows for the period;

e. notes, comprising a summary of significant accounting policies and other explanatory

information;

f. comparative information in respect of the preceding period as specified in IAS 1.38 and

IAS 1.38A; and

g. a statement of financial position as at the beginning of the preceding period if:

i.

the entity applies an accounting policy retrospectively or makes a retrospective

restatement of items in its financial statements, or when it reclassifies items in the

financial statements; and

ii. the retrospective application, retrospective restatement or the reclassification has

a material effect on the information in the statement of financial position at the

beginning of the preceding period.

IAS 1.40C

If the statement of financial position as at the beginning of the preceding period is required to

be presented, then disclose the information required by IAS 1.41¨C44 (see ¡®Reclassifications¡¯) and

IAS 8. The notes related to that statement of financial position need not be presented in such case.

IAS 1.31

A specific disclosure required by an IFRS need not be provided if the information is not

material.

Insights 1.2.18.20

In our view, the materiality of a disclosure item should not be determined solely by the

materiality of the related financial statement line item. When making judgements about the

materiality of disclosure, an entity considers the objectives of the disclosure and its relevance

to the users together with the surrounding circumstances, including the consideration of

qualitative factors.

The IASB material included in this work is Copyright ? of the IFRS Foundation?. All rights reserved. Reproduced by KPMG IFRG Limited with the permission of the IFRS Foundation?.

No permission granted to third parties to reproduce or distribute.

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