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Model Financial Statements Under IFRS As Adopted by the EU 2020

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