Guides to financial statements

Your essential guides to financial statements

Our Guides to financial statements help you to prepare and present 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 2024?

Driving clarity in financial reporting

Investors and regulators have been raising concerns about the clarity of financial reporting, including climate reporting. Companies need to be clear on climate in their financial reporting and be ready for the additional scrutiny that will come with sustainability reporting.

In response to investors’ concerns, the International Accounting Standards Board (IASB) is focusing on presentation and disclosure matters in the financial statements. A number of amendments to the existing presentation and disclosure requirements become effective this year.

Connectivity provides the unifying principle in achieving clarity in corporate reporting. It ensures that the different elements of a company’s annual report make a coherent, connected and integrated whole. The three key areas of the annual report – the financial statements, the sustainability disclosures and management’s discussion and analysis (MD&A) – need to provide a complete picture of the company’s business model and strategy, connecting the dots between the financial and non-financial information.

Annual financial statements

The 2024 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 reporting period beginning on 1 January 2024. 

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

• Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants (Amendments to IAS 1): The amendments clarify certain requirements for determining whether a liability is classified as current or non-current, and introduce new disclosures in the annual financial statements for non-current loan liabilities that are subject to covenants with which the company is required to comply within 12 months after the reporting date. See our article to find out more.
• Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7): The amendments introduce new disclosures to help users of the financial statements assess the effects of supplier finance arrangements on a company’s liabilities, cash flows and liquidity risk. See our article to find out more.
• 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 implementation status in the countries in which the group operates at the reporting date, to determine how to reflect the current Pillar Two top-up tax (where relevant) and what information to disclose. See our article and read our FAQs. 

In June 2024, the IFRS Interpretations Committee published its agenda decision Disclosure of Revenues and Expenses for Reportable Segments. (IFRS 8) The Committee discussed the requirements to disclose, for each reportable segment, specified amounts included in segment profit or loss reviewed by the chief operating decision maker, and the meaning of ‘material items of income and expense’ in the context of these disclosures. Our guide illustrates these disclosures. See our video to find out more.

Interim financial statements

The 2024 Interim 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 reporting period beginning on 1 January 2024. 

In particular, they illustrate the following.

• Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants (Amendments to IAS 1); and
• International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12).  

For further details, see Annual financial statements.