Reporting under IFRS

Example Consolidated Financial Statements 2014

The preparation of financial statements in accordance with International Financial Reporting
Standards (IFRSs) is challenging. Each year new Standards and Amendments are published by the International Accounting Standards Board (IASB) with the potential to significantly impact both the presentation of the primary statements and the accompanying disclosures.

The member firms of Grant Thornton International Ltd (GTIL) – one of the world’s leading organisations of independent assurance, tax and advisory firms – have extensive expertise in the application of IFRSs. Grant Thornton International Ltd, through its IFRS team, develops general guidance that supports its member firms’ commitment to high quality, consistent application of IFRSs and is therefore pleased to share these insights by publishing ‘Reporting under IFRSs – Example Consolidated Financial Statements 2014’ (the ‘Example Consolidated Financial Statements 2014’, the ‘Publication’).

‘Example Consolidated Financial Statements 2014’ is based on the activities and results of Illustrative Corporation and subsidiaries (the Group) – a fictional consulting, service and retail entity that has been preparing IFRS financial statements for several years. The form and content of IFRS financial statements depend on the activities and transactions of each reporting entity. Our objective in preparing ‘Example Consolidated Financial Statements 2014’ is to illustrate one possible approach to financial reporting by an entity engaging in transactions that are typical across a range of non specialist sectors. However, as with any example, this illustration does not envisage every possible transaction and cannot therefore be regarded as comprehensive. Management is responsible for the fair presentation of financial statements and therefore may find other approaches more appropriate for its specific circumstances. The Publication has been reviewed and updated to reflect changes in IFRSs that are effective for the year ending 31 December 2014, including:

  • the issuance of IFRIC 21 ‘Levies’
  • limited scope amendments to IAS 32 and IFRS 7 concerning the offsetting of financial assets and financial liabilities, and related disclosures
  • limited scope amendments to IAS 36 clarifying the applicability of recoverable amount disclosures for non-financial assets experiencing a material impairment loss or reversal during the period.
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