RSM International Limited has prepared a model set of consolidated financial statements for a fictitious company called IFRS Statements Limited which, for the purpose of the exercise, is described as a company listed in Big City Stock Exchange and incorporated and domiciled in a fictitious country, Newland. No such company or jurisdiction exists and any preparers of financial statements will need to ensure that their financial statements comply with local laws as well as all relevant International Financial Reporting Standards (“IFRS”).
The consolidated financial statements assume that IFRS Statements Limited is an existing IFRS preparer and is trading internationally as well as in its own country of incorporation and actively expanding. Accordingly, it is not a first-time adopter of IFRS. First-time adopters should instead refer to IFRS 1 First-time Adoption of International Financial Reporting Standards.
The illustrative financial statements do not include separate financial statements for the parent, which may be required by local laws or regulations, or may be prepared voluntarily. Where an entity presents separate financial statements that comply with IFRS, the requirements of IAS 27 Separate Financial Statements will then apply to those separate financial statements.
The IFRS consolidated financial statements have been prepared according to all relevant Standards and Interpretations in force for reporting periods beginning on or after 1 January 2017.
Suggested disclosures are cross-referenced to the underlying requirements in the texts of the relevant Standards and Interpretations. References are generally to the version of the relevant Standard or Interpretation mandatorily effective for the 2017 financial statements.
Whilst the illustrative financial statements illustrate many presentation and disclosure requirements for the consolidated financial statements of the fictitious group of companies that report under International Financial Reporting Standards, the financial statements do not purport to be all inclusive. No single set of example financial statements can illustrate all possible presentations or required disclosures. Common additional and alternative disclosures are illustrated in the appendices. In practice, many entities will have followed special transitional rules that depended on when individual new Standards were adopted or IFRS were applied for the first time. The model financial statements represent one form of presentation. Alternative presentations of IFRS may be appropriate and acceptable.
The preparation of financial statements complying with IFRS is the responsibility of the management of the relevant entity. Accordingly, the model financial statements provided cannot be taken as a definitive reference; they do not replace the need for professional judgement having regard to relevant Standards and other requirements and all the relevant circumstances relating to the issue under review. For the avoidance of doubt, the model financial statements are not based on any actual legal framework in any one or more jurisdictions.
Although the illustrative consolidated financial statements have been prepared by RSM International Limited, the views expressed are the consolidated views of a group of professionals known as “RSM IFRS Advisory Committee” and not those of any Member Firm of RSM International Limited itself.
The copyright in this published work belongs to and vests in RSM International Association and all rights are reserved. No part of this publication may be reproduced, stored in any system or transmitted in any form or by any means whether electronic, mechanical, photocopying, recording or otherwise without the prior permission in writing of RSM International Association.