Guide to annual financial statements – Disclosure checklist
嚜澠FRS
Guide to
annual financial
statements 每
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
EQUITY
OPERATING SEGMENTS
NON-CONTROLLING INTERESTS
PROVISIONS
DISCONTINUED OPERATIONS
JUDGEMENT
TRANSACTIONS
SHARE-BASED PAYMENT
FINANCIAL INSTRUMENTS ACCOUNTING POLICIES
FINANCIAL POSITION CASH FLOWS
FAIR PRESENTATION
2015
PROFIT OR LOSS
BUSINESS COMBINATIONS
STATEMENT
SUBSIDIARY
ANNUAL
PRESENTATION
FAIR VALUE
PERFORMANCE
ESTIMATES
BUSINESS COMBINATIONS
PRESENTATION
OPERATING SEGMENTS
IFRS
ASSETS
FAIR VALUE
CASH FLOWS
UNCONSOLIDATED STRUCTURED ENTITIES FINANCIAL POSITION
ifrs
GOING CONCERN
DISPOSAL
FINANCIAL POSITION SHARE-BASED PAYMENT EPS JOINT ARRANGEMENTS DISCLOSURES HELD-FOR-SALE PENSION
CHECKLIST
September 2015
OCI
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 and joint arrangements
2.5 Financial instruments
2.6 Inventories
2.7 Biological assets
2.8 Impairment of non-financial assets
2.9 Equity
2.10 Provisions
2.11 Income taxes
2.12 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
38
40
42
42
43
45
47
50
64
65
66
70
70
71
73
75
75
75
76
80
83
84
84
86
86
90
92
93
99
101
105
105
107
6 Voluntary early adoption of IFRSs
6.1 Accounting for Acquisitions of Interests in Joint
Operations (Amendments to IFRS 11)
6.2 Disclosure Initiative (Amendments to IAS 1)
6.3 IFRS 14 Regulatory Deferral Accounts
6.4 Agriculture: Bearer Plants (Amendments to
IAS 16 and IAS 41)
6.5 IFRS 15 Revenue from Contracts with Customers
6.6 IFRS 9 Financial Instruments (2014)
6.7 IFRS 9 Financial Instruments (2013)
6.8 IFRS 9 Financial Instruments (2010)
6.9 IFRS 9 Financial Instruments (2009)
6.10 IFRS 9 Financial Instruments (own credit
requirements)
110
110
110
112
114
115
119
144
164
181
198
Appendix: IFRSs that are effective for the first time
or are available for early adoption
200
Keeping you informed
202
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 entities to prepare 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 1 August 2015 and that
are required to be applied by an entity with an annual reporting period beginning on 1 January 2015 (＆currently effective
requirements＊). Section 6 identifies disclosure requirements based on standards that are effective for annual reporting periods
beginning after 1 January 2015 (＆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 每 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. An entity 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 2015?
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 2015, and those with a later effective date. As a result of
these new requirements, this guide includes updated disclosures in respect of operating segmentsa and related parties.a
Need for judgement
This guide is part of our suite of publications 每 Guides to financial statements 每 and specifically focuses on compliance with
IFRS. The preparation of an entity＊s financial statements requires judgement, in terms of the choice of accounting policies, how
the disclosures should be tailored to reflect the entity＊s specific circumstances, and the materiality of disclosures in the context
of the organisation.
Applying the concept of materiality to disclosures
An entity needs to consider the concept of materiality when preparing the notes to its financial statements; it is not appropriate
simply to apply the disclosure requirements in a standard without considering materiality. An entity does not need to provide a
specific disclosure under IFRS if the information resulting from that disclosure is not material. Also, an entity has to take care
not to reduce the understandability of its financial statements by obscuring material information with immaterial information or
by aggregating material items that have different natures and functions.
For example, a standard may provide specific disclosures for a material item in the financial statements, but even if the item is
material, this does not mean that all of the disclosures specified in that standard will be material for that item. An entity applies
the materiality concept on a disclosure-by-disclosure basis.
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. Annual Improvements to IFRSs 2010每2012 Cycle (see chapters 4.3 ＆Operating segments＊ and 4.6 ＆Related party disclosures＊).
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 每 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 12th edition 2015/16 of our publication Insights into IFRS.
Major change since the 2014 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.
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 1.2.75.10
An entity discloses material uncertainties related to events or conditions that may cast
significant doubt on its ability to continue as a going concern. In addition to the disclosure of
material uncertainties, disclosures are required when management concludes that there are
no material uncertainties but reaching that conclusion involved significant judgement (a ＆close
call＊ scenario).
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每44 (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.
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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