IFRS financial statements 

The International Financial Reporting Standards (IFRS) are rules for public companies to follow, ensuring financial statements are consistent, transparent and easily comparable across the globe.

IFRS currently applies to over 160 countries around the world. With the correct advice and formatting of IFRS-compliant financial statements, your company can continue its growth and expand into overseas markets.

That’s where we come in. We offer tailored IFRS accounting advice to meet the needs of businesses all over the world. So, if you need support with the preparation of financial statements in compliance with IFRS, get in touch with our experts today.

Our IFRS financial statements consulting services

Navigating the requirements of IFRS financial reporting can be difficult for businesses, especially those that are growing into new markets across borders. Our accounting experts can help you navigate the requirements of IFRS financial statements, allowing your organisation to adapt as it develops. Through Kreston’s accountancy consulting, your business can understand the differences in reporting under IFRS and other local financial reporting requirements such as GAAP, as well as making choices such as when to provide separate financial statements. Supporting your organisation in responsibly outsourcing your accounting services, will enable you to produce effective and efficient IFRS financial statements.

IFRS financial statements requirements

Financial statements provide comprehensive information on a business’ incomings and outgoings. In order to fully comply with IFRS requirements, businesses must report on their income and equity, providing a full picture of their financial position. Using information such as financial performance and cash flow, businesses will be able to make informed decisions that will further benefit their success.

An in-depth understanding of your organisation’s cash flow and financial structuring is essential for providing compliant and accurate reporting within the IFRS framework. Working with accounting experts can alleviate the burden of information collection and collation required for effective IFRS financial reporting.

Example IFRS financial statement structure

Financial statements that comply with IFRS include a range of quantitative and qualitative characteristics. Here are some of the core requirements of an IFRS compliant financial statement:

A statement of financial position at the end of the period

Sometimes referred to as a balance sheet. This statement represents the assets, liabilities and equity of a business. This information provides insight into the overall value of a business.

A statement of comprehensive income for the period

This IFRS-required financial statement highlights the profit or loss for the period. All items of income and all expenses will be provided to show the business’ net income.

A statement of changes in equity for the period

A change in the equity statement shows adjustments made to the amount of equity that stakeholders have in a business, ensuring transparency across the organisation.

A statement of cash flows for the period

Used as a summary of the movement of funds and cash equivalents that come in and out of a business. This measures how well a business manages its cash position. Using this information will reveal how well the company generates cash to pay off debt.

Notes containing a summary of significant accounting policies and other explanatory information

This is a chance for the company to provide extra documents to go with the statements provided. This information should be the basis for the preparation of financial statements.

Separate vs consolidated financial statements under IFRS

There are two ways to prepare your financial statements as per IFRS. With a consolidated approach, you claim compliance with IFRS across a parent company and its subsidiaries. This unification of financial statements in line with IFRS allows investors to see the health of the entire company.

The other form of IFRS-compliant reporting is separate financial statements. This means the financial statements represent either the parent company or a subsidiary. This is useful if an investor is looking into the health of an individual business, not the whole package.

Separate financial statements must be submitted in combination with consolidated statements, ensuring that the base requirements of IFRS reporting are met.

Financial statement differences between IFRS and GAAP

Whilst IFRS financial statements adhere to international standards and can be accessed and understood on a global basis, GAAP (Generally Accepted Accounting Principles) reporting is more localised and dictated by the country in which your business operates. Both IFRS and GAAP standards must be met within financial statements. Our accounting consultants provide expert advice in both IFRS and GAAP compliance and can support your organisation through all of its financial reporting needs.

What are Kreston Global’s compliance standards for IFRS Financial Statements?

Kreston Global partner firms comply with the professional standards of their respective countries as well as adhering to strict international regulations.

As a world-wide organisation we employ an effective internal monitoring programme ensuring that all our members meet the International Standards on Quality Control as well as the International Standards on Auditing for the conduct of transnational audits. All Kreston partner firms follow the code of ethics as dictated by the IESBA (International Ethics Standards Board for Accountants).

As a proud member of the Forum of Firms, an association of international networks of accounting firms, Kreston Global is committed to meeting high standards in financial reporting and auditing practices across our worldwide community.

Wherever you are in the world, wherever your business operates, you can trust our standards to be universally met and exacting.

Why choose Kreston Global for IFRS-compliant financial statements?

Does your organisation need to prepare your financial statements in compliance with IFRS? If so, you may need some expert help. With over 50 years of experience and a network of 160 global accounting firms, we have supported businesses all over the world in auditing, reporting and IFRS financial statement compliance. Kreston’s global outlook enables us to combine compliant IFRS accounting services with efforts to find efficiency and efficacy across your organisation, making your accounting services work even better for your business.

To get the most out of Kreston, become a member and gain access to extensive knowledge across our global network.