Guides to financial statements

Our Guides to financial statements help you to prepare financial statements in accordance with IFRS Accounting Standards. They comprise:

• Illustrative disclosures, which illustrate one possible format for financial statements, based on a fictitious multinational corporation;
• Disclosure checklist, which identifies the disclosures that may be required based on currently effective accounting standards; and
• Supplements to illustrative disclosures, which illustrate additional disclosures that companies may need to provide on accounting issues.

These guides will help you to prepare and present your financial statements in accordance with IFRS Accounting Standards by illustrating one possible format for financial statements for a fictitious multinational corporation and identifying potential disclosures required.

Guides to financial statements

Annual illustrative disclosures

Supplements to annual illustrative disclosures

Annual disclosure checklists

Interim illustrative disclosures

Interim disclosure checklists

Annual illustrative disclosures for sectors

What's new

Interim financial statements – 2024

The 2024 Condensed interim financial statements reflect requirements relating to the newly effective accounting standards and amendments issued by the International Accounting Standards Board (IASB) – i.e. those that are effective for companies with an annual period beginning on 1 January 2024.

In particular, they illustrate the following.

• IAS 1Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants(Amendments to IAS 1), as issued in 2020 and 2022: The amendments clarify certain requirements for determining whether a liability is classified as current or non-current, and require new disclosures in the annual financial statements for non-current liabilities that are subject to future covenants.
• International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12): Different countries are at different stages of implementing global top-up tax legislation. Companies need to consider the status of implementation in the countries in which the group operates at the interim reporting date to determine how to reflect the current Pillar Two top-up tax (where relevant) and what information to disclose. For further information about disclosures for Pillar Two taxes, see our web article and read our FAQs.

Annual financial statements – 2023 year-ends

The 2023 Illustrative disclosures reflect requirements relating to the newly effective accounting standards and amendments issued by the IASB – i.e. those that are effective for companies with an annual period beginning on 1 January 2023.

In particular, they illustrate the application of the following amendments.

• Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12): The amendments narrow the scope of the initial recognition exemption to exclude transactions that give rise to equal and offsetting temporary differences – e.g. leases and decommissioning obligations. See our web article to find out more.
• International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12): The amendments provide relief from deferred tax accounting for Pillar Two top-up taxes and introduce new disclosures about exposure to these taxes.
• Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2): These amendments require companies to disclose their ‘material’ accounting policies, rather than their ‘significant’ accounting policies. Read our web article and talkbook to find out more.

Other financial reporting considerations

Financial reporting in uncertain times

Many companies are likely to be facing challenges in these uncertain times. External events such as natural disasters, geopolitical events and inflation continue to drive uncertainty across the globe.

Preparers should carefully evaluate and consider the impact of external events on their 2024 interim financial reporting and provide an update to relevant, company-specific disclosures since the last annual reporting date.

Our Uncertain times digital hub includes articles, blogs and podcasts to help you better understand the accounting and disclosure implications for your company. See specifically the article What is the impact of external events on interim financial statements?

Climate change and financial reporting

All companies are facing climate-related risks and opportunities and are making strategic decisions in response – including around their transition to a low-carbon economy.

The 2024 Condensed interim financial statements provide example disclosures of the climate-related impact related to the fictitious corporation’s intangible assets and goodwill and its emissions schemes.

Our Clear on climate reporting digital hub provides FAQs to help companies identify the potential financial statement impacts for their business.

Also, in June 2023 the International Sustainability Standards Board (ISSB) published its first two IFRS Sustainability Disclosure Standards, including a climate standard with detailed guidance on how to report on climate-related risks and opportunities. For more on this and related developments, see our ISSB Standards Today page.

Connectivity between the financial statements and other information

A company’s general purpose financial reports usually contain three key areas that provide insights into the business model and strategy: the financial statements, the sustainability disclosures, and management’s discussion and analysis (MD&A). A company may face direct challenge from investors, regulators and other report users if those insights are not connected. Climate-related matters and other uncertainties are under particular scrutiny.

To achieve connectivity in both interim and annual reports, it is important that companies both comply with relevant standards and connect the dots between financial and non-financial information. For a consistent story across its reports, a company:

• reviews the strategy, business model, risks and opportunities described in the front part of the financial report (e.g. sustainability disclosures and MD&A);
• compares this with the financial statement judgements, assumptions and estimates; and
• checks that the financial statements and the front part of the financial report are connected.

Connectivity is especially important when reporting on issues that create volatility for the company’s prospects, such as climate change and other uncertainties. For more about connectivity, see our Connected Reporting Today page.

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