Example consolidated financial statements 2012 final

Download Example consolidated financial statements 2012 final

Post on 05-Dec-2014




0 download

Embed Size (px)




<ul><li> 1. EXAMPLE CONSOLIDATED FINANCIAL STATEMENTS 2012 AND GUIDANCE NOTESReporting under IFRS </li> <li> 2. Important Disclaimer:This document has been developed as an information resource. It is intended as a guide onlyand the application of its contents to specific situations will depend on the particularcircumstances involved. While every care has been taken in its presentation, personnel whouse this document to assist in evaluating compliance with International Financial ReportingStandards should have sufficient training and experience to do so. No person should actspecifically on the basis of the material contained herein without considering and takingprofessional advice. Neither Grant Thornton International Ltd, nor any of its personnel nor anyof its member firms or their partners or employees, accept any responsibility for any errors itmight contain, whether caused by negligence or otherwise, or any loss, howsoever caused,incurred by any person as a result of utilising or otherwise placing any reliance upon thisdocument. </li> <li> 3. IntroductionExample Consolidated Financial Statements 2012 However, as with any example, this illustration doesThe preparation of financial statements in not envisage every possible transaction and cannotaccordance with International Financial Reporting therefore be regarded as comprehensive. ManagementStandards (IFRS) is challenging. The challenges is responsible for the fair presentation of financialhave increased as a result of applying new Standards statements and therefore may find other approachesand Amendments published by the International more appropriate for its specific circumstances.Accounting Standards Board (IASB) that The Publication has been reviewed and updatedsignificantly impact both the presentation of the to reflect changes in IFRS that are effective for theprimary statements and the accompanying year ending 31 December 2012 and also reflects thedisclosures. early adoption of Presentation of Items of Other The member firms within Grant Thornton Comprehensive Income (Amendments to IAS 1).International Ltd (Grant Thornton International) The Publication does not reflect the early adoption ofone of the worlds leading organisations of any other changes in IFRS that have been issued butindependently owned and managed accounting and are not yet effective. Additionally, no account hasconsulting firms have extensive expertise in the been taken of any new developments published afterapplication of IFRS. Grant Thornton International, 31 August 2012.through its IFRS team, develops general guidance thatsupports its member firms commitment to highquality, consistent application of IFRS and istherefore pleased to share these insights by publishingReporting under IFRS Example ConsolidatedFinancial Statements 2012 (the ExampleConsolidated Financial Statements 2012, thePublication). Example Consolidated Financial Statements2012 is based on the activities and results ofIllustrative Corporation and subsidiaries (the Group) a fictional consulting, service and retail entity thathas been preparing IFRS financial statements forseveral years. The form and content of IFRS financialstatements depend on the activities and transactionsof each reporting entity. Our objective in preparingExample Consolidated Financial Statements 2012 isto illustrate one possible approach to financialreporting by an entity engaging in transactions thatare typical across a range of non-specialist sectors. Example Consolidated Financial Statements 2012 i </li> <li> 4. Using the Publication In some areas, alternative presentation is also illustrated in the Appendices. For further guidance on the Standards and Interpretations applied, reference is made to IFRS sources throughout the Publication on the left hand side of each page. The Publication does not address any jurisdictional or regulatory requirements in areas such as management commentary, remuneration reporting or audit reporting. Most importantly, the use of the Publication is not a substitute for the use of a comprehensive and up to date disclosure checklist to ensure completeness of the disclosures in IFRS financial statements. Grant Thornton International Ltd September 2012ii Example Consolidated Financial Statements 2012 </li> <li> 5. ILLUSTRATIVE CORPORATION GROUP 31 DECEMBER 2012Example Consolidated FinancialStatements: International FinancialReporting Standards (IFRS) </li> <li> 6. ContentsConsolidated statement of financial position 1Consolidated income statement 3Consolidated statement of comprehensive income 4Consolidated statement of changes in equity 5Consolidated statement of cash flows 6Notes to the consolidated financial statements 71 Nature of operations 72 General information and statement of compliance with IFRS 73 Changes in accounting policies 84 Summary of accounting policies 125 Acquisitions and disposals 296 Jointly controlled entities 327 Investments in associates 328 Segment reporting 329 Goodwill 3510 Other intangible assets 3711 Property, plant and equipment 3912 Leases 4013 Investment property 4114 Financial assets and liabilities 4215 Deferred tax assets and liabilities 5016 Inventories 5117 Trade and other receivables 5118 Cash and cash equivalents 5219 Disposal groups classified as held for sale and discontinued operations 5320 Equity 5421 Employee remuneration 5622 Provisions 6123 Trade and other payables 6224 Other liabilities 6225 Finance costs and finance income 6326 Other financial items 6427 Income tax expense 6428 Earnings per share and dividends 6529 Cash flow adjustments and changes in working capital 6530 Related party transactions 6631 Contingent liabilities 6832 Financial instrument risk 6833 Capital management policies and procedures 7534 Post-reporting date events 7635 Authorisation of financial statements 76Appendix A: Organising the income statement by function of expenses 78Appendix B: Statement of comprehensive income presented in single statement 80 </li> <li> 7. Consolidated statement offinancial position as at 31 DecemberIAS 1.51(c) Notes 2012 2011 2010IAS 1.51(d-e) CU000 CU000 CU000 AssetsIAS 1.60/66 Non-currentIAS 1.57 Goodwill 9 5,041 3,537 1,234IAS 1.54(c) Other intangible assets 10 17,424 13,841 10,664 Guidance note: Consolidated statement of financial positionIAS 1.54(a) Property, plant and equipment 11 22,439 20,647 21,006 The Example Consolidated Financial Statements 2012IAS 1.54(e), use the terminology in IAS 1 Presentation of FinancialIAS 28.38 Investments accounted for using the equity method 7 430 23 11 Statements (IAS 1). However an entity may use other titles (eg balance sheet instead of statement of financial position)IAS 1.54(b) Investment property 13 12,662 12,277 12,102 for the primary financial statements (IAS 1.10). IFRS requiresIAS 1.54(d) Other long-term financial assets 14 3,765 3,880 4,327 an entity to present, at a minimum, two statements of financial position (the current period and prior period).IAS 1.54(o), IAS 1.10(f) and IAS 1.39 require an entity to present aIAS 1.56 Deferred tax assets 15 225 520 statement of financial position and related notes as at theIAS 1.60 Non-current assets 61,761 54,430 49,864 beginning of the earliest comparative period (eg a third statement of financial position) if it (i) applies an accounting policy retrospectively, (ii) makes a retrospectiveIAS 1.60/66 Current restatement of items in its financial statements, or (iii)IAS 1.54(g) Inventories 16 18,548 17,376 18,671 reclassifies items in the financial statements.IAS 1.54(h) Trade and other receivables 17 33,629 25,628 20,719 Even when a third statement of financial position is not required, an entity may still elect to include such aIAS 1.54(d)/55 Derivative financial instruments 14 582 212 490 statement. This approach allows an entity to maintain aIAS 1.54(d) Other short-term financial assets 14 655 649 631 more consistent format and layout from one year to the next and may therefore save on design and printingIAS 1.54(n) Current tax assets 308 costs. The Example Consolidated Financial StatementsIAS 1.54(i) Cash and cash equivalents 18 34,789 11,237 10,007 2012 include an extra comparative statement of financialIAS 1.60 Current assets 88,203 55,410 50,518 position as of 31 December 2010 (which in effect represents the beginning of the earliest comparative period, 1 January 2011) and the related notes.IFRS 5.38, Assets included in disposal group classified as held 19 103 3,908 The statement of financial position reflects the se...</li></ul>


View more >