The preparation of financial statements in accordance with International Financial Reporting Standards (IFRS) is challenging. Each year, new Standards and amendments are published by the International Accounting Standards Board (IASB) with the potential to significantly impact the presentation of a complete set of financial statements.
We can help you with this challenge and are pleased to share our insights by publishing Example consolidated financial statements 2019 (Example Financial Statements).
The Example Financial Statements are based on the activities and results of Illustrative Corporation and subsidiaries - 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 the Example Financial Statements 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 Example Financial Statements have been updated to reflect changes in IFRSs that are effective for the year ending 31 December 2019. In particular, they reflect the adoption of IFRS 16 'Leases' which is effective for annual accounting periods beginning on or after 1 January 2019.