IFRS Example Financial Statements 2018

Continued IFRS Reporting 1


Group Reporting Entity Legal Entity

Consolidated Financial Statements

General financial statement presentation requirements

Link Description
IAS 1:10 Composition of a complete set of financial statements.
IAS 1:10A Single or two statement approach for profit or loss and other comprehensive income.
IAS 1:49 Clear identification of financial statements from other information.
IAS 1:51 Clear identification of each component of the financial statements, and various details of the reporting entity.

 

Entity specific disclosures

Link Description
IAS 1:51(a) Name of entity.
IAS 1:138 Various details of the reporting entity.

Group Reporting Entity Legal Entity 2


In practice, the (Consolidated) Financial Statements are part of a larger booklet, for example, called Annual Report. The Annual Report’s high level content is for example:

  1. Management commentary
  2. Consolidated Financial Statements
  3. Other information

Management commentary is a more or less free form narrative report that provides a context within which to interpret the financial position, financial performance and cash flows of the group of entities. It also provides management with the opportunity to explain objectives and the strategies for achieving those objectives. The financial information contained in management commentary has to be derived from the same source as the information contained in the financial statements, it supplements, and compliments the amounts included in the financial statements.

The Consolidated Financial Statements also may contain the (Ultimate) Parent Company Financial Statements, many times based on legal requirements of the jurisdiction of the parent company. These Parent Company Financial Statements may be any kind if condensed, again mostly based on legal requirements or common (historical) practice in the jurisdiction of the parent company.

Other information comprises multiple types of forms, for example:

  • shareholders meeting invitation and/or meeting agenda,
  • the parent company financial statements (rather than as part of the Consolidated Financial Statements),
  • statutory requirements (profit appropriation requirements, profit appropriation proposal, subsequent events).

Group Reporting Entity Legal Entity

Consolidated Statement of Profit or Loss and Other Comprehensive Income

(Single statement approach and by function of expense)

 

General financial statement presentation requirements

Link Description
IAS 1:38-38A Minimum comparative information required (current and previous period).
IAS 1:85 Present additional line items, headings and sub-totals as required.
IAS 1:99-100 Presentation of the analysis of expenses (nature or their function).
IAS1:103 Example presentation of analysis of expenses by function.
IAS 1:113 Notes to be presented in a systematic manner and cross referenced.

 

Specific line item requirements

Link Description
IAS 1:81A Specific sub-totals required for profit or loss, total other comprehensive income and comprehensive income for the period.
IAS 1:82 Specific line items required within profit or loss.
IAS 1:82A Specific categorisation required for items within other comprehensive income.
IAS 1:82 In addition to items required by other IFRSs, the profit or loss section or the statement of profit or loss shall include line items that present the following amounts for the period:
(ba) impairment losses (including reversals of impairment losses or impairment gains) determined in accordance with Section 5.5 of IFRS 9
IAS 1:87 Specifically prohibits extraordinary items.
IAS 1:90, 91 Specific presentation for items of other comprehensive income (either pretax or post-tax) required.
IAS 12:77 Specific presentation required for tax expense.
IFRS 5:33, 33A,34 Specific presentation required for discontinued operations.
IAS 21:52(b) Specific presentation required for net exchange differences recognised in other comprehensive income.
IFRS 7:20(a)(ii) Specific disclosures for available-for-sale investments
IFRS 7:23F Specific disclosures for cash flow hedges.

Group Reporting Entity Legal Entity 

Consolidated Statement of Profit or Loss and Other Comprehensive Income3

For the year ended 31 December 2018

 


Consolidated Statement of Profit or Loss and Other Comprehensive Income

(Single statement approach and by function of expense)

(continued)

Potential additional presentation items

General financial statement presentation requirements

Link Description
IAS 1:38-38A Minimum comparative information required (current and previous period).
IAS 1:85 Present additional line items, headings and sub-totals as required.
IAS 1:113 Notes to be presented in a systematic manner and cross referenced.

Potential additional line items

Specific line item requirements

Link Description
IAS 1:81B Specific presentation required for the split of profit or loss and total comprehensive income between non-controlling interests and owners of the parent.
IAS 33.4 – IAS33.66 Specific disclosures presentation required for basic and diluted earnings per share.


Group Reporting Entity Legal Entity 

Consolidated Statement of Profit or Loss and Other Comprehensive Income4 

For the year ended 31 December 2018


Consolidated Statement of Profit or Loss

(Dual statement approach and by nature of expense)

 General financial statement presentation requirements

Link Description
IAS 1:38-38A Minimum comparative information required (current and previous period).
IAS 1:85 Present additional line items, headings and sub-totals as required.
IAS 1:99-100 Presentation of the analysis of expenses (nature or their function).
IAS1:102 Example presentation of analysis of expenses by nature.
IAS 1:113 Notes to be presented in a systematic manner and cross referenced.

Specific line item requirements

Link Description
IAS 1:81A Specific sub-totals required for profit or loss, total other comprehensive income and comprehensive income for the period.
IAS 1:82 Specific line items required within profit or loss.
IAS 1:87 Specifically prohibits extraordinary items.
IAS 12:77 Specific presentation required for tax expense.
IFRS 5:33, 33A,34 Specific presentation required for discontinued operations.
IAS 1:81B Separate presentation required for the split of profit or loss to noncontrolling interest and owners of the parent
IAS 33.4 – IAS33.66 Specific presentation required for basic and diluted earnings per share.

Consolidated Statement of Profit or Loss


Consolidated Statement of Other Comprehensive Income

(Dual statement approach and by nature of expense)

General financial statement presentation requirements

Link Description
IAS 1:38-38A Minimum comparative information required (current and previous period).
IAS 1:85 Present additional line items, headings and sub-totals as required.
IAS 1:85 Notes to be presented in a systematic manner and cross referenced.

 Specific line item requirements

Link Description
IAS 1:10A Under the two statement approach, the statement of comprehensive income must begin with profit or loss.
IAS 1:82A Specific categorisation required for items within other comprehensive income.
IAS 1:90, 91 Specific presentation for items of other comprehensive income (either pretax or post-tax) required.
IAS 1:90, 91 Specific presentation for the net exchange differences recognised in other comprehensive income.
IFRS 7:20(a)(ii) Specific disclosures for available-for-sale investments.

Specific disclosures

Link Description
IAS 1:81B Separate presentation required for the split of total comprehensive income between non-controlling interests and owners of the parent

Consolidated Statement of Other Comprehensive Income

RWE Statement of comprehensive income 2018

Consolidated statement of financial position5

ASSETS, LIABILITIES AND EQUITY 

General financial statement presentation requirements

Link Description
IAS 1:38-38A Minimum comparative information required (current and previous period).
IAS 1:55 Present additional line items, headings and sub-totals as required.
IAS 1:77-78 Present further sub-classifications as required (or in the notes).
IAS 1:113 Notes to be presented in a systematic manner and cross referenced.
IAS 1:10(f), 40A-B Instances when the presentation of a third balance sheet is required.

Specific line item requirements 

Link Description
IAS 1:54 Specific line items required in the statement of financial position.
IAS 1:56 Deferred tax assets must not be presented as current.
IAS 1:57 A list of items that warrant separate disclosure. IAS 1 does not prescribe the order or format of presentation of line items.
IAS 1:60 Presentation of line items on a:
– Current and non-current basis
– Liquidity basis (subject to criteria and additional requirements).
IAS 1:61 Disclosure of items expected to be recovered or settled within and after 12 months of reporting date.
IFRS 16:48 Presentation of right-of-use assets subject to lessor operating leases by their nature (i.e. Investment property).
IFRS 5.35 Specific line items required for assets held for sale.
IFRS 5.38, IFRS 5.40 Specific line items required for assets held for sale and assets in disposal groups held for sale.
IAS 10:17 Details of authorisation of the financial statements

Example – Statement of Financial Position
Petrobas Financial Position 31 December 2018


Consolidated statement of cash flows

OPERATING ACTIVITIES

General financial statement presentation requirements

Link Description
IAS 1:38-38A Minimum comparative information required (current and previous period).
IAS 1:113 Notes to be presented in a systematic manner and cross referenced.
IAS 7:10 Cash flows are to be classified as either operating, investing, or financing activities.
IAS 7:18 Report operating cash flows either using:
– Direct method
– Indirect method.
IAS 7:21,
IAS 7:22
Criteria when cash flows are to be presented gross or net.

Specific line item requirements 

Link Description
IAS 7:14 Examples of operating activity cash flows.
IAS 7:31 Present cash flows from interest and dividends as either operating, investing or financing activities (must be consistent year-on-year).
IAS 7:35 Present cash flows from taxes on income as operating activities (unless they can be separately identified with financing and investing activities).

Consolidated Statement of Cash Flows – Operating Activities

BHP Billiton consolidated operating cash flows 2018

Toyota Consolidated Cash flows from Operating activities 2018

 

Carrefour Consolidated operating cash flows 2017


FINANCING AND INVESTING ACTIVITIES

Consolidated Statement of Cash Flows

General financial statement presentation requirements

Link Description
IAS 1:38-38A Minimum comparative information required (current and previous period).
IAS 1:113 Notes to be presented in a systematic manner and cross referenced.
IAS 7:10 Cash flows are to be classified as either operating, investing, or financing activities.
IAS 7:21,
IAS 7:22
Criteria when cash flows are to be presented gross or net.

Specific line item requirements 

Link Description
IAS 7:16 Examples of investing activity cash flows.
IAS 7:17 Examples of financing activity cash flows.
IAS 7:31 Present cash flows from interest and dividends as either operating, investing or financing activities (must be consistent year-on-year).
IAS 7:39 Aggregate cash flows from obtaining or losing control of subsidiaries or other businesses are classified as investing activities.
IAS 7:42A Cash flows from transactions relating to changes in ownership that do not result in a loss of control are classified as financing activities.
IAS 7.28 Present the effect of unrealised foreign exchange gains or losses on cash balances.
IAS 7:45 Reconciliation (or reference to a reconciliation) of the cash balances presented in the statement of cash flows and the statement of financial position.

Consolidated Statement of Cash Flows-Financing and Investing activities

BHP Billiton Consolidated cash flows Financing and Investing 2018

Toyotal consolidated financing investing and cash flows 2018

Carrefour Consolidated financing and investing cash flows 2017

Consolidated Statement of Changes in Equity

General financial statement presentation requirements

Link Description
IAS 1:38-38A Minimum comparative information required (current and previous period).
IAS 1:113 Notes to be presented in a systematic manner and cross referenced.


Specific line item requirements
 

Link Description
IAS 1:106 Specific line items and information required for the components of equity in the statement of changes in equity.
IAS 1:106A Analysis of other comprehensive income by component of equity (or in the notes).
IAS 1:107 Dividends recognised as distributions to owners and the related amount per share (or in the notes).

Consolidated Statement of Changes in Equity

Several Consolidated Statements of Changes in Equity 2018

Notes to the consolidated financial statements 

General requirement for the Notes to the consolidated financial statements 

Link Description
IAS 1:112 The Notes to the consolidated financial statements include the following information:

  • Basis of preparation
  • Specific accounting policies
  • Information required by IFRSs that is not presented elsewhere
  • Information that is not presented elsewhere in the financial statements, but is relevant to an understanding the financial statements.
IAS 1:113 Notes are required to be presented in a systematic manner and cross-referenced.

Notes to the consolidated financial statements

Contents comparison Notes to Financial Statements 2018