DOCSLIB.ORG

Model Financial Statements Under IFRS As Adopted by the EU 2020

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Model Financial Statements Under IFRS As Adopted by the EU 2020 Model Financial Statements under IFRS as adopted by the EU 2020 Model Financial Statements under IFRS as adopted by the EU The model financial statements of International GAAP Holdings Limited for the year ended 31 December 2020 are intended to illustrate the presentation and disclosure requirements of International Financial Reporting Standards (IFRSs) as adopted by the EU. They also contain additional disclosures that are considered to be best practice, particularly where such disclosures are included in illustrative examples provided within a specific Standard. International GAAP Holdings Limited is assumed to have presented financial statements in accordance with IFRS Standards for a number of years. Therefore, it is not a first-time adopter of IFRS Standards. Readers should refer to IFRS 1 First-time Adoption of International Financial Reporting Standards for specific requirements regarding an entity’s first IFRS financial statements. It is further assumed that International GAAP Holdings Limited does not qualify as an investment entity as defined in IFRS 10. The model financial statements illustrate the impact of the application of following amendments to IFRS Standards adopted by the EU that were issued on or before 15 January 2021 and are mandatorily effective for the annual period beginning on 1 January 2020: Amendments to IFRS 9, IAS 39 and IFRS 7 Interest Rate Benchmark Reform (Phase 1); Amendments to IFRS 16 Covid-19-Related Rent Concessions; Amendments to IFRS 3 Definition of a business; Amendments to IAS 1 and IAS 8 Definition of material; and Amendments to References to the Conceptual Framework in IFRS Standards. These model financial statements do not illustrate the impact of the application of new and revised IFRS Standards that are not yet mandatorily effective on 1 January 2020. The model financial statements do not include separate financial statements for the parent, which may be required by local laws or regulations, or may be prepared voluntarily. Where an entity presents separate financial statements that comply with IFRS Standards, the requirements of IAS 27 Separate Financial Statements (as revised in 2011) will apply. Separate statements of profit or loss and other comprehensive income, financial position, changes in equity and cash flows for the parent will generally be required, together with supporting notes. Further, these model financial statements assume that neither the parent company nor its subsidiaries are entities whose functional currency is the currency of a hyperinflationary economy. In addition, the model financial statements have been presented without regard to local laws or regulations. Suggested disclosures are cross-referenced to the underlying requirements in the texts of the relevant Standards and Interpretations. For the purposes of presenting the statements of profit or loss and other comprehensive income and cash flows, the alternatives allowed under IFRS Standards for those statements have been illustrated. Preparers should select the alternatives most appropriate to their circumstances and apply the chosen presentation method consistently. Note that in these model financial statements, we have frequently included line items that are not applicable to International GAAP Holdings Limited, so as to illustrate items that are commonly encountered in practice. This does not mean that we have illustrated all possible disclosures, nor should it be taken to mean that entities are required to display such line items in practice. These model financial statements were prepared based on the original publication IFRS Model Financial Statements 2020 issued by Deloitte’s London office in 2020 and tailored to be applicable for the entities preparing their financial statements in compliance with IFRSs as adopted by the EU. Areas that could be affected by climate change or COVID-19 are marked with symbols in the margin. The symbol indicates that the model financial statements could be impacted by the effects of the COVID-19 pandemic. The symbol indicates that disclosures might need to be adapted to explain how the group impacts or/and is impacted by climate change. The tables in Appendix 1 give an overview of all areas impacted by climate change and/or COVID-19. To see in more detail how areas of the financial statements can be affected by COVID-19, please see our IFRS in Focus newsletter Accounting Considerations related to the Coronavirus 2019 Disease. Model Financial Statements under IFRS as adopted by the EU Contents Consolidated statement of profit or loss and other comprehensive income 1 Alt. 1 – Presentation as two statements, with expenses analysed by function 3 Alt. 2 – Single statement presentation, with expenses analysed by nature 6 Consolidated statement of financial position 9 Consolidated statement of changes in equity 15 Consolidated statement of cash flows Alt. 1 – Indirect method of reporting cash flows from operating activities 17 Alt. 2 – Direct method of reporting cash flows from operating activities 20 Notes to the consolidated financial statements 22 Appendix 1 – Areas of the model financial statements affected by climate change and COVID-19 172 Model Financial Statements under IFRS as adopted by the EU Index to the notes to the consolidated financial statements 1 General information ................................................................................................................................................................ 22 2 Adoption of new and revised International Financial Reporting Standards (IFRSs) as adopted by the EU ...................... 22 3 Significant accounting policies................................................................................................................................................ 30 4 Critical accounting judgements and key sources of estimation uncertainty ....................................................................... 59 5 Revenue ................................................................................................................................................................................... 64 6 Operating segments ................................................................................................................................................................ 65 7 Restructuring costs.................................................................................................................................................................. 70 8 Profit for the year .................................................................................................................................................................... 71 9 Staff costs ................................................................................................................................................................................ 72 10 Finance income ....................................................................................................................................................................... 72 11 Other gains and losses ............................................................................................................................................................ 72 12 Finance costs ........................................................................................................................................................................... 73 13 Income Tax .............................................................................................................................................................................. 74 14 Discontinued operations ......................................................................................................................................................... 76 15 Dividends ................................................................................................................................................................................. 78 16 Earnings per share ................................................................................................................................................................... 78 17 Goodwill ................................................................................................................................................................................... 80 18 Other intangible assets ........................................................................................................................................................... 83 19 Property, plant and equipment .............................................................................................................................................. 84 20 Investment property ............................................................................................................................................................... 87 21 Subsidiaries .............................................................................................................................................................................. 90 22 Associates ................................................................................................................................................................................ 91 23 Joint ventures .......................................................................................................................................................................... 94 24 Joint operations ......................................................................................................................................................................
Load more

Recommended publications
  • The Disclosure Initiative
    Issue 187/ February 2021 IFRS Developments The Disclosure Initiative – IASB amends the accounting policy requirements What you need to know Highlights In February 2021, the International Accounting Standards Board (IASB or • On 12 February 2021, the IASB issued amendments to IAS 1 the Board) issued amendments to IAS 1 Presentation of Financial Statements and the PS to provide guidance in which it provides guidance and examples to help entities apply materiality on the application judgements to accounting policy disclosures. The Board also issued amendments of materiality judgements to to IFRS Practice Statement 2 Making Materiality Judgements (the PS) to support accounting policy disclosures. the amendments in IAS 1 by explaining and demonstrating the application of the ‘four-step materiality process’ to accounting policy disclosures. • The amendments to IAS 1 replace the requirement to In particular, the amendments aim to help entities provide accounting policy disclose ‘significant’ accounting disclosures that are more useful by: policies with a requirement to disclose ‘material’ accounting • Replacing the requirement for entities to disclose their ‘significant’ accounting policies. policies with a requirement to disclose their ‘material’ accounting policies; and Adding guidance on how entities apply the concept of materiality in making • Guidance and illustrative • examples are added in the PS to decisions about accounting policy disclosures. assist in the application of the materiality concept when Background making judgements about In an attempt to enhance communication in financial reporting, the IASB has made accounting policy disclosures. ‘Better Communication in Financial Reporting’ a central theme of its standard- setting activities in recent years. The Disclosure Initiative is part of the IASB’s • The amendments to IAS 1 will be effective for annual periods Better Communication theme and aims to address how the effectiveness of starting on or after 1 January disclosures in IFRS financial statements can be improved.
    [Show full text]
  • VALUE IFRS Plc Illustrative IFRS Consolidated Financial Statements December 2019
    VALUE IFRS Plc Illustrative IFRS consolidated financial statements December 2019 This publication presents the sample annual financial reports of a fictional listed company, VALUE IFRS Plc. It illustrates the financial reporting requirements that would apply to such a company under International Financial Reporting Standards as issued at 31 May 2019. Supporting commentary is also provided. For the purposes of this publication, VALUE IFRS Plc is listed on a fictive Stock Exchange and is the parent entity in a consolidated entity. VALUE IFRS Plc 2019 is for illustrative purposes only and should be used in conjunction with the relevant financial reporting standards and any other reporting pronouncements and legislation applicable in specific jurisdictions. Global Accounting Consulting Services PricewaterhouseCoopers LLP This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. About PwC At PwC, our purpose is to build trust in society and solve important problems. We're a network of firms in 158 countries with more than 250,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com © 2019 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. VALUE IFRS Plc Illustrative IFRS consolidated financial statements December
    [Show full text]
  • In Brief a Look at Current Financial Reporting Issues
    In brief A look at current financial reporting issues inform.pwc.com December 2014 IASB issues narrow scope amendments to IAS 1: Presentation of financial statements Issue In December 2014 the IASB issued amendments to clarify guidance in IAS 1 on materiality and aggregation, the presentation of subtotals, the structure of financial statements and the disclosure of accounting policies. The amendments form a part of the IASB’s Disclosure Initiative, which explores how financial statement disclosures can be improved. The amendments are effective from 1 January 2016. Impact The following is a summary of the key changes. Materiality An entity should not aggregate or disaggregate information in a manner that obscures useful information, for example, by aggregating items that have different characteristics or disclosing a large amount of immaterial detail. When management determines an item is material, the amendments require assessment of which specific disclosures set out in the relevant standard should be presented, and whether additional information is necessary to understand the impact on the financial position or performance. Disaggregation and subtotals The amendments clarify that it may be necessary to disaggregate some of the line items specified in IAS 1 paragraphs 54 (statement of financial position) and 82 (profit or loss). That disaggregation is required where it is relevant to an understanding of the entity's financial position or performance. The amendments address additional subtotals in the statement of financial position or the statement of profit or loss and other comprehensive income. The amendments give guidance on what additional subtotals are acceptable and how they are presented. The revised guidance captures common subtotals that are not specifically This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
    [Show full text]
  • Insights Into IFRS 13
    Accounting Advisory Global Insights into IFRS 13 Fair Value Measurement Fair Value Measurement IFRS 13 ‘Fair Value Measurement’ explains how to measure fair value by providing clear definitions and introducing a single set of requirements for almost all fair value measurements. It clarifies how to measure fair value when a market becomes less active. IFRS 13 applies to both financial and non-financial items but does not address or change the requirements on when fair value should be used. IFRS 13 has been effective since 1 January 2013 and was subject to a Post Implementation Review (PIR) in 2017. As a result of this PIR, the International Accounting Standards Board (IASB) concluded that IFRS 13 is working as intended. Specifically, • the information required by IFRS 13 is useful to users of financial statements • some areas of IFRS 13 present implementation challenges, mainly in areas requiring judgement. However, evidence suggests that practice is developing to resolve these challenges, and • no unexpected costs have arisen from application of IFRS 13. The IASB therefore concluded no changes were required to IFRS 13. This Insights into IFRS 13 article not only summarises the Standard, it also provides detailed commentary on various aspects of applying this Standard from the perspective of a preparer working alongside a valuation expert. “IFRS 13 ‘Fair Value Measurement’ explains how to measure fair value by providing clear definitions and introducing a single set of requirements for almost all fair value measurements.” 2 Insights into IFRS 13 – Fair Value Measurement Summary of IFRS 13 Fair Value Measurement The table summarises the main requirements of the Standard: Requirement Significance • addresses all fair value and ‘fair value-based’ measurements (except those in IFRS 2 ‘Share-based Payment’ and IFRS 16 ‘Leases’) Scope • covers both financial and non-financial items • fair values that are required to be disclosed in the notes are also captured.
    [Show full text]
  • IAS 7 STATEMENT of CASH FLOWS Contents 1
    IFRS IN PRACTICE 2019-2020: IAS 7 STATEMENT OF CASH FLOWS Contents 1. Introduction 4 2. Definition of cash and cash equivalents 5 2.1. Demand deposits 5 2.2. Short term maturity 6 2.3. Investments in equity instruments 6 2.4. Changes in liquidity and risk 6 2.5 Cryptocurrencies 6 2.6 Short-term credit lending and cash and cash equivalent classification 7 3. Restricted cash and cash equivalent balances – disclosure requirements 8 3.1. Interaction with IAS 1 8 4. Classification of cash flows as operating, investing or financing 9 4.1. Operating activities 9 4.2. Investing activities 9 4.3. Financing activities 9 4.3.1. Disclosure of changes in liabilities arising from financing activities 10 4.4. Classification of interest and dividends 10 4.5. Common classification errors in practice 11 5. Offsetting cash inflows and outflows in the statement of cash flows 13 5.1. Effect of bank overdrafts on the carrying amount of cash and cash equivalents 13 5.2. Refinancing of borrowings with a new lender 14 6. Presentation of operating cash flows using the direct or indirect method 15 7. Income taxes and sales taxes 16 8. Foreign exchange 17 8.1. Worked example – foreign currency translation 17 9. Group cash pooling arrangements in an entity’s separate financial statements 20 10. Securities and loans held for dealing or trading 22 11. Classification of cash flows arising from a derivative used in an economic hedge 23 12. Revenue from Contracts with Customers 24 13. Leases 25 13.1. Payments made on inception of a lease 25 13.2.
    [Show full text]
  • Ifrs-9-Presentation-Of-Interest-Revenue-For-Particular-Financial-Instruments-Mar-18.Pdf
    Presentation of interest revenue for particular financial instruments (IFRS 9 Financial Instruments and IAS 1 Presentation of Financial Statements)—March 2018 The Committee received a request about the effect of the consequential amendment that IFRS 9 made to paragraph 82(a) of IAS 1. That consequential amendment requires an entity to present separately, in the profit or loss section of the statement of comprehensive income or in the statement of profit or loss, interest revenue calculated using the effective interest method. The request asked whether that requirement affects the presentation of fair value gains and losses on derivative instruments that are not part of a designated and effective hedging relationship (applying the hedge accounting requirements in IFRS 9 or IAS 39 Financial Instruments: Recognition and Measurement). Appendix A to IFRS 9 defines the term ‘effective interest method’ and other related terms. Those interrelated terms pertain to the requirements in IFRS 9 for amortised cost measurement and the expected credit loss impairment model. In relation to financial assets, the Committee observed that the effective interest method is a measurement technique whose purpose is to calculate amortised cost and allocate interest revenue over the relevant time period. The Committee also observed that the expected credit loss impairment model in IFRS 9 is part of, and interlinked with, amortised cost accounting. The Committee noted that amortised cost accounting, including interest revenue calculated using the effective interest method and credit losses calculated using the expected credit loss impairment model, is applied only to financial assets that are subsequently measured at amortised cost or fair value through other comprehensive income.
    [Show full text]
  • IPSASB Meeting (September 2019) Agenda Item 1.5 IPSAS–IFRS Alignment1 Dashboard2
    IPSASB Meeting (September 2019) Agenda Item 1.5 1 2 IPSAS–IFRS Alignment Dashboard CONTENTS Table 1 – IPSAS/RPG and Equivalent IFRS/PS—Summary ............................................................................................................................................................... 2 Table 2 – IFRS/PS with no Equivalent IPSAS/RPG ............................................................................................................................................................................ 3 Table 3 – IPSAS and Equivalent IFRS—Detail .................................................................................................................................................................................... 4 Table 4 – RPG and Equivalent PS—Detail ........................................................................................................................................................................................ 17 Table 5 – Summary of IASB Work Plan as at May 28, 2019 ............................................................................................................................................................. 18 ALIGNMENT STATUS LEGEND Degree updated for relevant IFRS changes Degree of public sector specificity Step in Process for Degree of Public Sector Specificity Reviewing and Modifying Degree Updated for Relevant IFRS Changes IASB Documents Updated IPSAS with minor public sector guidance added (public sector terminology and minor modifications) 4 Relevant IFRS changes
    [Show full text]
  • A Roadmap to the Preparation of the Statement of Cash Flows
    A Roadmap to the Preparation of the Statement of Cash Flows May 2020 The FASB Accounting Standards Codification® material is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116, and is reproduced with permission. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. The services described herein are illustrative in nature and are intended to demonstrate our experience and capabilities in these areas; however, due to independence restrictions that may apply to audit clients (including affiliates) of Deloitte & Touche LLP, we may be unable to provide certain services based on individual facts and circumstances. As used in this document, “Deloitte” means Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Tax LLP, and Deloitte Financial Advisory Services LLP, which are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of our legal structure. Copyright © 2020 Deloitte Development LLC. All rights reserved. Publications in Deloitte’s Roadmap Series Business Combinations Business Combinations — SEC Reporting Considerations Carve-Out Transactions Comparing IFRS Standards and U.S.
    [Show full text]
  • IFRS Example Consolidated Financial Statements 2019
    IFRS Assurance IFRS Example Global Consolidated Financial Statements 2019 with guidance notes Contents Introduction 1 19 Cash and cash equivalents 61 IFRS Example Consolidated Financial 3 20 Disposal groups classified as held for sale and 61 Statements discontinued operations 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 10 26 Reconciliation of liabilities arising from 73 Financial Statements financing activities 1 Nature of operations 11 27 Finance costs and finance income 73 2 General information, statement of compliance 11 28 Other financial items 74 with IFRS and going concern assumption 29 Tax expense 74 3 New or revised Standards or Interpretations 12 30 Earnings per share and dividends 75 4 Significant accounting policies 15 31 Non-cash adjustments and changes in 76 5 Acquisitions and disposals 33 working capital 6 Interests in subsidiaries 37 32 Related party transactions 76 7 Investments accounted for using the 39 33 Contingent liabilities 78 equity method 34 Financial instruments risk 78 8 Revenue 41 35 Fair value measurement 85 9 Segment reporting 42 36 Capital management policies and procedures 89 10 Goodwill 46 37 Post-reporting date events 90 11 Other intangible assets 47 38 Authorisation
    [Show full text]
  • IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors
    IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors Overview IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors is applied in selecting and applying accounting policies, accounting for changes in estimates and reflecting corrections of prior period errors. The standard requires compliance with any specific IFRS applying to a transaction, event or condition, and provides guidance on developing accounting policies for other items that result in relevant and reliable information. Changes in accounting policies and corrections of errors are generally retrospectively accounted for, whereas changes in accounting estimates are generally accounted for on a prospective basis. IAS 8 was reissued in December 2005 and applies to annual periods beginning on or after 1 January 2005. Summary of IAS 8 Key definitions [IAS 8.5] Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements. A change in accounting estimate is an adjustment of the carrying amount of an asset or liability, or related expense, resulting from reassessing the expected future benefits and obligations associated with that asset or liability. International Financial Reporting Standards are standards and interpretations adopted by the International Accounting Standards Board (PASB). They comprise: International Financial Reporting Standards (PFRSs) International Accounting Standards (PASs) Interpretations developed by the International Financial Reporting Interpretations Committee (IFRIC) or the former International Interpretations Committee (SIC) and approved by the PASB. Materiality. Omissions or misstatements of items are material if they could, by their size or nature, individually or collectively, influence the economic decisions of users taken on the basis of the financial statements.
    [Show full text]
  • Technical Accounting Alert
    TA ALERT 2010-21 JUNE 2010 Technical Accounting Alert IAS 1R and the requirement for a third statement of financial position (balance sheet) Introduction The purpose of this alert is to explain the circumstances in which IAS 1 (as revised in 2007) requires an additional statement of financial position (balance sheet). IAS 1 (as revised in 2007) and primary statements The title 'statement of financial position' was introduced in the 2007 amendments to IAS 1 in place of 'balance sheet'. Other primary statement titles were also amended (along with more substantive changes). The new titles are not mandatory and we expect that many entities will continue to refer to the balance sheet. IAS 1 now requires entities to present (as a minimum ) the following primary statements: - statement of financial position at the end of the period and end of the comparative period - statement of comprehensive income for the period and the comparative period - statement of cash flows for the period and the comparative period - statement of changes in equity for the period and the comparative period along with related notes. The 2007 amendments to IAS 1 also introduced a requirement for an additional (third) statement of financial position at the beginning of the comparative period in some circumstances. This TA alert explains those circumstances. The 2007 amendments to IAS 1 are mostly effective for annual periods beginning on or after 1 January 2009 and are retrospective. Early application is permitted (IAS 1.139 and 139A). Relevant Australian standards References in this TA alert are made to standards issued by the International Accounting Standards Board.
    [Show full text]
  • IAS Plus Guide to IFRS 5 Assets Held for Sale and Discontinued Operations
    22976 bd AssetsHeld:22976 AssetsHeld bd 7/3/08 16:52 Page a Audit Assets held for sale and discontinued operations A guide to IFRS 5 An IAS Plus guide March 2008 Audit.Tax.Consulting.Financial Advisory. 22976 bd AssetsHeld:22976 AssetsHeld bd 7/3/08 16:52 Page b Contacts Global IFRS leadership team IFRS global office Global IFRS leader Ken Wild [email protected] IFRS centres of excellence Americas D.J. Gannon [email protected] Asia Pacific Hong Kong Melbourne Stephen Taylor Bruce Porter [email protected] [email protected] Europe-Africa Copenhagen Johannesburg London Paris Jan Peter Larsen Graeme Berry Veronica Poole Laurence Rivat [email protected] [email protected] [email protected] [email protected] Deloitte’s www.iasplus.com website provides comprehensive information about international financial reporting in general and IASB activities in particular. Unique features include: • daily news about financial reporting globally. • summaries of all Standards, Interpretations and proposals. • many IFRS-related publications available for download. • model IFRS financial statements and checklists. • an electronic library of several hundred IFRS resources. • all Deloitte Touche Tohmatsu comment letters to the IASB. • links to several hundred international accounting websites. • e-learning modules for each IAS and IFRS – at no charge. • complete history of adoption of IFRSs in Europe and information about adoptions of IFRSs elsewhere around the world. • updates on developments in national accounting standards. 22976 bd AssetsHeld:22976 AssetsHeld bd 7/3/08 16:52 Page c Contents 1. Introduction 1 2. Scope 2 2.1 Classification and presentation requirements 2 2.1.1 Non-current assets 2 2.1.2 Disposal groups 2 2.2 Measurement requirements 3 2.2.1 ‘Scoped-out’ non-current assets 3 2.2.2 Current assets 4 3.
    [Show full text]