2019 Example Financial Statements

IFRS

Assurance

IFRS Example

Consolidated Financial

Statements 2019

with guidance notes

Global

Contents

Introduction1

19 Cash and cash equivalents

61

IFRS Example Consolidated Financial 

Statements

3

20 Disposal groups classified as held for sale and

discontinued operations

61

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

Financial Statements

10

26 Reconciliation of liabilities arising from 

financing activities

73

1

11

27 Finance costs and finance income

73

2 General information, statement of compliance

with IFRS and going concern assumption

11

28 Other financial items

74

29 Tax expense

74

3

New or revised Standards or Interpretations

12

30 Earnings per share and dividends

75

4

Significant accounting policies

15

Acquisitions and disposals

33

31 Non-cash adjustments and changes in

working capital

76

5

6

Interests in subsidiaries

37

32 Related party transactions

76

7

Investments accounted for using the

equity method

39

33 Contingent liabilities

78

34 Financial instruments risk

78

8

Revenue

41

35 Fair value measurement

85

9

Segment reporting

42

36 Capital management policies and procedures

89

37 Post-reporting date events

90

38 Authorisation of financial statements

90

Appendices to the IFRS Example Consolidated

Financial Statements

91

Appendix A: Organising the statement of profit

or loss by function of expenses

92

Appendix B: Statement of comprehensive income

presented in a single statement

94

Appendix C: Effective dates of new IFRS Standards

96

Nature of operations

10 Goodwill

46

11 Other intangible assets

47

12 Property, plant and equipment

49

13 Leases

50

14 Investment property

52

15 Financial assets and liabilities

53

16 Deferred tax assets and liabilities

59

17 Inventories

60

18 Trade and other receivables

60

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.

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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¡¯) ¨C 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 ¨C 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 ¨C 31 December 2019

IFRS Example Consolidated

Financial Statements

Illustrative Corporation Group

31 December 2019

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