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.
IFRS currently applies to over 140 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 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.
Required elements of financial statements as per IFRS
Financial statements provide comprehensive information on a business’ incomings and outgoings. Using information such as financial performance and cash flow, businesses will be able to make informed decisions that will further benefit their success.
Financial statements that comply with IFRS include quantitative and qualitative characteristics. They include:
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.
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.
Combined vs Separate financial statements under IFRS
There are two ways to prepare your financial statements as per IFRS. With a combined approach, you claim compliance with IFRS across a parent company and its subsidiaries. This consolidation of financial statements in line with IFRS allows investors to see the health of the entire company.
The other form of IFRS-compliant financial statements is separate. 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.
Why use Kreston Global for IFRS-compliant financial statements?
Do you need to prepare your financial statements in compliance with IFRS? If so, you may need some expert help. With 50 years of experience, we have supported businesses all over the world in auditing, reporting and IFRS financial statement compliance. Get in touch with one of our proactive business advisors today for more information.
To get the most out of Kreston, become a member and gain access to extensive knowledge across our global network.