Illustrative financial statements - KPMG

IFRS

Illustrative financial

statements

October 2012

ifrs

1

Contents

What¡¯s new

2

About this publication

3

Independent auditors¡¯ report on consolidated financial statements

5

Consolidated financial statements

7

Consolidated statement of financial position

9

Consolidated statement of comprehensive income ¨C single-statement approach

13

Consolidated statement of changes in equity

17

Consolidated statement of cash flows

21

Notes to the consolidated financial statements

25

Appendices

I

New standards or amendments first effective for 2012 and forthcoming requirements

221

II

Consolidated income statement and consolidated statement of comprehensive income ¨C

two-statement approach

225

III Consolidated statement of cash flows ¨C direct method

229

IV Example disclosures for entities that early adopt Presentation of Items of Other Comprehensive Income

(Amendments to IAS 1 Presentation of Financial Statements)

231

V

233

Example disclosures for entities that early adopt IFRS 9 Financial Instruments (2010)

VI Example disclosures for entities that early adopt IAS 19 Employee Benefits (2011)

255

VII Example disclosures for entities that early adopt IFRS 10 Consolidated Financial Statements,

IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities

269

VIII Example disclosures for interests in unconsolidated structured entities

289

IX Example disclosures for entities that early adopt IFRS 13 Fair Value Measurement

291

X

299

Example disclosures for entities that require going concern disclosures

XI Example disclosures for distributions of non-cash assets to owners

301

XII Example disclosures for government-related entities under IAS 24 Related Party Disclosures

303

XIII Example disclosures for entities with a service concession arrangement

307

Technical guide

310

Other ways KPMG member firm professionals can help

311

? 2012 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved.

2

What¡¯s new?

Major changes from the September 2011 edition of Illustrative financial statements are highlighted by a double-line

border running down the left margin of the text within this publication. The major changes include the following.

¡ñ¡ñ

¡ñ¡ñ

Example disclosures for the adoption of Deferred Tax: Recovery of Underlying Assets (Amendments to IAS 12), which

is effective for annual periods beginning on or after 1 January 2012.

Three new appendices illustrating example disclosures for the early adoption of:

¨C IAS 19 Employee Benefits (2011);

¨C IFRS 10 ?Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in

Other Entities (2011), including the related amendments arising from Consolidated Financial Statements, Joint

Arrangements and Disclosure of Interests in Other Entities: Transition Guidance (Amendments to IFRS 10, 11 and 12)

(2012); and

¨C IFRS 13 Fair Value Measurement (2011).

¡ñ¡ñ

An appendix illustrating example disclosures for the early adoption of IFRS 9 Financial Instruments, taking into account

the amendments arising from IFRS 9 Financial Instruments (2010) and Mandatory Effective Date and Transition

Disclosures (Amendments to IFRS 9 and IFRS 7) (2011).

In addition, the IASB has issued several other amendments to its standards during the past year. To help identify

requirements that are effective for the first time for annual periods beginning on 1 January 2012, and those that are

available for early adoption in the period, a new appendix has been introduced to list these new requirements, with

cross-references to the related example disclosures when appropriate.

? 2012 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved.

3

About this publication

These illustrative financial statements have 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.

Content

This publication helps you prepare financial statements in accordance with IFRS. It illustrates one possible format for

financial statements based on a fictitious multinational corporation; the corporation is not a first-time adopter of IFRS

(see ¡®Technical guide¡¯).

This publication reflects IFRS in issue at 1 October 2012 that are required to be applied by an entity with an annual

period beginning on 1 January 2012 (¡®currently effective¡¯ requirements). IFRSs that are effective for annual periods

beginning after 1 January 2012 (¡®forthcoming¡¯ requirements) have not been adopted early in preparing these illustrative

financial statements. However, certain forthcoming requirements have been introduced in the explanatory notes in a

highlighted box. Appendix I provides a list of standards or amendments that are effective for the first time for annual

periods beginning on 1 January 2012 and forthcoming requirements. Example disclosures for the adoption of certain

new standards and amendments are included in the appendices to these illustrative financial statements.

When preparing financial statements in accordance with IFRS, an entity should have regard to applicable legal and

regulatory requirements. This publication does not consider any requirements of a particular jurisdiction. For example,

IFRS does not require the presentation of separate financial statements for the parent entity, and this publication

includes only consolidated financial statements. However, in some jurisdictions parent entity financial information may

also be required.

This publication does not illustrate the requirements of IFRS 4 Insurance Contracts, IFRS 6 Exploration for and

Evaluation of Mineral Resources, IAS 26 Accounting and Reporting by Retirement Benefit Plans or IAS 34 Interim

Financial Reporting. IAS 34 requirements are illustrated in our publication Illustrative condensed interim financial

report.

This publication illustrates only the financial statements component of a financial report and the independent

auditors¡¯ report on the financial statements. However, a financial report will typically include at least some additional

commentary from management, either in accordance with local laws and regulations or at the election of the entity

(see ¡®Technical guide¡¯).

IFRS and its interpretation change over time. Accordingly, these illustrative financial statements should not be used as

a substitute for referring to the standards and interpretations themselves.

References

The illustrative financial statements are contained on the odd-numbered pages of this publication. The even-numbered

pages contain explanatory comments and notes on the disclosure requirements of IFRS. The illustrative examples,

together with the explanatory notes, are not intended to be seen as a complete and exhaustive summary of all

disclosure requirements that are applicable under IFRS. In addition, an entity need not provide a specific disclosure

required by an IFRS if the information is not material. For an overview of all disclosure requirements that are applicable

under IFRS, see our publication Disclosure checklist.

To the left of each item disclosed, a reference to the relevant standard is provided. The illustrative financial statements

also include references to the 9th Edition 2012/13 of our publication Insights into IFRS.

? 2012 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved.

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

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

Google Online Preview   Download