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<ul><li><p>Illustrative IFRS consolidated financial statementsfor 2013 year ends</p><p>inform.pwc.com</p><p>Illustra</p><p>tive IFRS con</p><p>solida</p><p>ted fin</p><p>an</p><p>cial sta</p><p>temen</p><p>tsfor 2013 year ends</p></li><li><p>Illustrative IFRS consolidatedfinancial statements for 2013 year ends</p><p>Global Accounting Consulting ServicesPricewaterhouseCoopers LLP</p><p>Published by</p></li><li><p>Bloomsbury Professional, an imprint of Bloomsbury Publishing Plc, Maxwelton House,4143 Boltro Road, Haywards Heath, West Sussex, RH16 1BJ</p><p>This book has been prepared for general guidance on matters of interest only, and does notconstitute professional advice. You should not act upon the information contained in this bookwithout obtaining specific professional advice. Accordingly, to the extent permitted by law,PricewaterhouseCoopers LLP (and its members, employees and agents) and publisher accept noliability, and disclaim all responsibility, for the consequences of you or anyone else acting, orrefraining from acting, in reliance on the information contained in this document or for any decisionbased on it, or for any consequential, special or similar damages even if advised of the possibilityof such damages.</p><p>All rights reserved. No part of this publication may be reproduced in any material form (includingphotocopying or storing it in any medium by electronic means and whether or not transiently orincidentally to some other use of this publication) without the written permission ofPricewaterhouseCoopers LLP except in accordance with the provisions of the Copyright, Designsand Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing AgencyLtd, Saffron House, 610 Kirby Street, London EC1 N 8TS. Applications for the copyright ownerswritten permission to reproduce any part of this publication should be addressed to the publisher.</p><p>Warning: The doing of an unauthorised act in relation to a copyright work may result in both a civilclaim for damages and criminal prosecution.</p><p>ISBN 9781780432588</p><p>British Library Cataloguing-in-Publication Data.A catalogue record for this book is available from the British Library.</p><p># 2013 PricewaterhouseCoopers</p><p>Printed in Great Britain</p></li><li><p>IFRS GAAP plc year ended 31 December 2013</p><p>PwC Illustrative IFRS consolidated financial statements for 2013 year ends iii</p></li><li><p>iv PwC Illustrative IFRS consolidated financial statements for 2013 year ends</p></li><li><p>Introduction</p><p>This publication provides an illustrative set of consolidated financial statements,prepared in accordance with International Financial Reporting Standards (IFRS), for afictional manufacturing, wholesale and retail group (IFRS GAAP plc).</p><p>IFRS GAAP plc is an existing preparer of IFRS consolidated financial statements;IFRS 1, First-time adoption of International Financial Reporting Standards, is notapplicable. Guidance on financial statements for first-time adopters of IFRS is availableat www.pwc.com/ifrs</p><p>This publication is based on the requirements of IFRS standards and interpretations forfinancial years beginning on or after 1 January 2013.</p><p>PwC commentary has been provided, in grey boxes, to explain the detail behind thepresentation of a number of challenging areas. We draw your attention in particular toour commentary on the income statement, statement of comprehensive income,balance sheet, statement of changes in equity, statement of cash flows, statement ofsignificant accounting policies and financial risk management.</p><p>Areas in which we have made significant changes to presentation since 2012 havebeen highlighted in pink. For 2013 the significant changes include the application ofIFRSs 10, 11, 12 and 13 together with IAS 19 and the IAS 1 presentation changes toOther Comprehensive Income.</p><p>We have attempted to create a realistic set of financial statements for a corporate entity.However, by necessity we illustrate disclosures that for many entities may beimmaterial. Determining the level of disclosure is a matter of judgement, and naturallydisclosure of immaterial items is not required. Certain types of transaction have beenexcluded, as they are not relevant to the groups operations. The example disclosures,if material, for some of these additional items have been included in appendix III. Theforthcoming IFRS requirements are outlined in a table in appendix IV.</p><p>The example disclosures should not be considered the only acceptable form ofpresentation. The form and content of each reporting entitys financial statements arethe responsibility of the entitys management. Alternative presentations to thoseproposed in this publication may be equally acceptable if they comply with the specificdisclosure requirements prescribed in IFRS.</p><p>These illustrative financial statements are not a substitute for reading the standards andinterpretations themselves or for professional judgement as to fairness of presentation.They do not cover all possible disclosures that IFRS requires. Further specificinformation may be required in order to ensure fair presentation under IFRS. Werecommend that readers refer to our publication IFRS disclosure checklist 2013.</p><p>PwC Illustrative IFRS consolidated financial statements for 2013 year ends v</p></li><li><p>Abbreviations</p><p>IFRS1p37 = International Financial Reporting Standard [number], paragraphnumber.</p><p>7p22 = International Accounting Standard [number], paragraph number.</p><p>SIC-15p5 = Standing Interpretations Committee [number], paragraph number.</p><p>DV = Disclosure Voluntary. Disclosure is encouraged but not required andtherefore represents best practice.</p><p>vi PwC Illustrative IFRS consolidated financial statements for 2013 year ends</p></li><li><p>Contents</p><p>PageFinancial statementsConsolidated income statement ................................................................................. 1Consolidated statement of comprehensive income .................................................... 2Consolidated balance sheet ...................................................................................... 10Consolidated statement of changes in equity ........................................................... 15Consolidated statement of cash flows ...................................................................... 18</p><p>Notes to the consolidated financial statements:1 General information ........................................................................................ 222 Summary of significant accounting policies: ................................................... 22</p><p>2.1 Basis of preparation ............................................................................. 222.1.1 Changes in accounting policies and disclosures .......................... 23</p><p>2.2 Consolidation ....................................................................................... 242.3 Segment reporting ............................................................................... 272.4 Foreign currency translation ................................................................. 272.5 Property, plant and equipment ............................................................. 282.6 Intangible assets .................................................................................. 292.7 Impairment of non-financial assets ...................................................... 302.8 Non-current assets (or disposal groups) held for sale ......................... 302.9 Financial assets ................................................................................... 31</p><p>2.9.1 Classification ................................................................................ 312.9.2 Recognition and measurement .................................................... 31</p><p>2.10 Offsetting financial instruments ............................................................ 322.11 Impairment of financial assets ............................................................. 322.12 Derivative financial instruments and hedging activities ........................ 332.13 Inventories ........................................................................................... 342.14 Trade receivables ................................................................................ 352.15 Cash and cash equivalents .................................................................. 352.16 Share capital ........................................................................................ 352.17 Trade payables .................................................................................... 352.18 Borrowings ........................................................................................... 362.19 Borrowing costs ................................................................................... 362.20 Compound financial instruments .......................................................... 362.21 Current and deferred income tax ......................................................... 372.22 Employee benefits ............................................................................... 382.23 Share-based payments ........................................................................ 392.24 Provisions ............................................................................................ 402.25 Revenue recognition ............................................................................ 402.26 Interest income .................................................................................... 412.27 Dividend income .................................................................................. 422.28 Leases ................................................................................................. 422.29 Dividend distribution ............................................................................. 422.30 Exceptional items ................................................................................. 42</p><p>PwC Illustrative IFRS consolidated financial statements for 2013 year ends vii</p></li><li><p>3 Financial risk management ............................................................................ 453.1 Financial risk factors ................................................................................. 453.2 Capital management ................................................................................. 503.3 Fair value estimation ................................................................................. 503.4 Offsetting financial assets and liabilities .................................................... 54</p><p>4 Critical accounting estimates and judgements ............................................... 624.1 Critical accounting estimates and assumptions ........................................ 624.2 Critical judgements in applying the entitys accounting policies ................ 63</p><p>5 Segment information ...................................................................................... 656 Exceptional items ........................................................................................... 707 Other income .................................................................................................. 718 Other (losses)/gains net .............................................................................. 719 Expenses by nature ....................................................................................... 7110 Employee benefit expense ............................................................................. 7211 Finance income and costs ............................................................................. 7212 Investments accounted for using the equity method ...................................... 73</p><p>12(a) Investment in associates ...................................................................... 7312(b) Investment in joint venture .................................................................... 7612(c) Principal subsidiaries ............................................................................. 79</p><p>13 Income tax expense ....................................................................................... 8214 Earnings per share ......................................................................................... 8515 Net foreign exchange gains/(losses) .............................................................. 8616 Property, plant and equipment ....................................................................... 8617 Intangible assets ............................................................................................ 9118 Financial instruments ....................................................................................... 95</p><p>18(a) Financial instruments by category ....................................................... 9518(b) Credit quality of financial assets .......................................................... 97</p><p>19 Available-for-sale financial assets .................................................................. 9820 Derivative financial instruments ...................................................................... 9921 Trade and other receivables ........................................................................ 10022 Inventories .................................................................................................... 10223 Financial assets at fair value through profit or loss ..................................... 10324 Cash and cash equivalents .......................................................................... 10325 Non-current assets held for sale and discontinued operations .................... 10426 Share capital and premium ......................................................................... 10527 Share-based payments ................................................................................ 10628 Retained earnings ........................................................................................ 10729 Other reserves ............................................................................................. 10830 Trade and other payables ............................................................................ 11131 Borrowings ................................................................................................... 11132 Deferred income tax .................................................................................... 11433 Post-employment benefits ............................................................................ 116</p><p>33(a) Defined benefit pension plans ............................................................. 11633(b) Post-employment medical benefits ..................................................... 12033(c) Post-employment benefits (pension and medical) .............................. 122</p><p>34 Dividends per share ..................................................................................... 12435 Provisions for other liabilities and charges ................................................... 12436 Cash generated from operations .................................................................. 12637 Contingencies .....................................................</p></li></ul>

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