Special Purpose Example Financial Statements

Example special purpose financial statements

Grant Thornton CLEARR Example Pty Ltd For the year ended 30 June 2016

Example special purpose financial statements For the year ended 30 June 2016

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? 2016 Grant Thornton Australia Limited. All rights reserved.

Example special purpose financial statements

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For the year ended 30 June 2016

Foreword

Welcome to the June 2016 edition of Example Financial Statements.

The preparation of financial statements in accordance with Australian Accounting Standards (AASBs) and International Financial Reporting Standards (IFRSs) is challenging. Each year new standards and amendments are published by the Australian Accounting Standards Board and the International Accounting Standards Board with the potential to significantly impact both the presentation of the primary financial statements and the accompanying disclosures.

The annual (and interim) reporting period ending 30 June 2016 represents relatively little change in terms of accounting standards which is a welcome relief for many Australian businesses. However, businesses need to be wary of the next oncoming wave of changes currently unfolding in the next few years with the completion of the various major projects by the International Accounting Standards Board (IASB) and Australian Accounting Standards Board. Recently issued major standards on revenue (IFRS/AASB 15) and financial instruments (IFRS/AASB 9) become effective for annual reporting periods on or after 1 January 2018. While the effective date of 2018 may seem a long way off, we strongly encourage businesses to start evaluating these new standards sooner rather than later as they may have significant impact on many entities.

Businesses also need to pay attention to the new Leases Standard (IFRS/AASB 16 Leases) which brings in all leases on balance sheet, with exemptions for short-term leases and leases of low value assets. Even though this standard does not come into effective until 1 January 2019, its impact is likely to be significant for many businesses. It will affect most companies that report under Australian Accounting Standards and are involved in leasing, and will have a substantial impact on businesses that lease `big-ticket' assets such as property and high value equipment. Whatever your views on the new Leases Standard, businesses would be well advised to start an impact analysis sooner rather than later.

Should preparers like to discuss these financial reporting changes or recent developments and how these may impact upon your business, please contact your local Grant Thornton Australia relationship partner, or the National Accounting Support (NAS) Team on nationalaudit.support@au.. There are also various publications (Technical Accounting Alerts [TA Alerts] and IFRS Quarterly Newsletters [IFRS News]) on our website .au which provide an overview of these developments.

? 2016 Grant Thornton Australia Limited. All rights reserved.

Example special purpose financial statements

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For the year ended 30 June 2016

The June 2016 edition of Example Financial Statements is based on the recent Grant Thornton International publication, however has been tailored to suit the Australian financial reporting and regulatory environment. This publication is intended to illustrate the `look and feel' of Australian special purpose financial statements and to provide a realistic example of their presentation.

This publication is based on the activities and results of Grant Thornton CLEARR Example Pty Ltd (`the Company'); a fictional IT entity that has been preparing special purpose financial statements for several years. The form and content of these financial statements depend of course on the activities and transactions of each entity. Our objective in preparing Example Financial Statements was 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 cannot therefore be regarded as comprehensive. Management are responsible for the fair presentation of financial statements and therefore may find other approaches more appropriate in their specific circumstances.

These Example Financial Statements have been reviewed and updated to reflect changes in Australian Accounting Standards that are effective for the year ending 30 June 2016. However, no account has been taken of any new developments published after 1 April 2016. The Grant Thornton website contains any updates that are relevant for 30 June 2016 financial statements including our Technical Accounting Alert titled "Accounting standards issued but not yet effective for June 2016".

Using this publication

In some areas alternative presentation and disclosure approaches are also illustrated in the appendices.

For further guidance on the Standards and Interpretations applied, reference is made to Australian Accounting Standards and Interpretations sources throughout the document on the left hand side of each page.

The use of this publication is not a substitute for the use of a comprehensive and up-to-date disclosure checklist to ensure completeness of the disclosures in the financial statements.

Matt Adam-Smith National Managing Partner ? Service Lines Grant Thornton Australia Limited April 2016

? 2016 Grant Thornton Australia Limited. All rights reserved.

Example special purpose financial statements For the year ended 30 June 2016

Contents

Foreword Directors' Report Auditor's Independence Declaration Statement of Profit or Loss and Other Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements

1 Statement of significant accounting policies 2 Revenue 3 Other income 4 Result for the year 5 Income tax expense 6 Auditor's remuneration 7 Dividends 8 Cash and cash equivalents 9 Trade and other receivables 10 Inventories 11 Other assets 12 Property, plant and equipment 13 Intangible assets 14 Trade and other payables 15 Borrowings 16 Taxation 17 Employee benefits 18 Provisions 19 Issued capital 20 Reserves 21 Capital and leasing commitments 22 Contingent assets and contingent liabilities 23 Cash flow information 24 Events after the reporting date 25 Company details Directors' Declaration Independent Auditor's Report

? 2016 Grant Thornton Australia Limited. All rights reserved.

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