Guides to financial statements

Your essential 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.
  

What's new in 2025?

Tell a clear, coherent and connected story

Investors, regulators and other report users rely on the financial statements to provide decision-useful information – i.e. information about a company that is useful in making decisions about providing resources to that company.

In times of uncertainty, users look for clarity in the annual report. They want to know how a company is affected and how it addresses the challenges, and what judgements, estimates and assumptions management makes.

Companies may also face direct challenge from users if their annual reports fail to tell a connected story. This is especially important when reporting on issues that create volatility for the company’s prospects – e.g. climate-related effects and other uncertainties. The annual report’s three key areas – the financial statements; the sustainability disclosures; and management commentary (e.g. management’s discussion and analysis) – need to provide insights into the company’s business model and strategy, connecting the dots between financial and non-financial information.

Annual financial statements – 2025 reporting periods 

The 2025 Illustrative disclosures reflect requirements relating to accounting standards, amendments and interpretations issued by the International Accounting Standards Board (IASB) that are effective for companies with an annual period beginning on 1 January 2025. 

In particular, they illustrate impacts of the following.

• Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7): The amendments, effective in 2024, provided a transitional relief to omit comparative information for 2023 and certain quantitative information as at 1 January 2024. The relief no longer applies; companies now need to provide comparative information and the required quantitative information.
• Pillar Two top-up taxes: The new Pillar Two tax laws are complex and it may be challenging to estimate their impact. Companies need to engage with their tax specialists and users to ensure that the financial statements accurately reflect, and provide meaningful information about, top-up tax exposure. 

Interim financial statements – 2025 reporting periods

The 2025 Interim illustrative disclosures reflect requirements relating to accounting standards, amendments and interpretations issued by the IASB that are effective for companies with an annual period beginning on 1 January 2025. This guide also includes illustrative disclosures related to Pillar Two taxes. 

Our article What is the impact of external events on interim financial statements? provides guidance for companies facing financial reporting challenges during uncertain times.