Example consolidated financial statements - Flipbook - Page 14
Notes to the IFRS Example
Illustrative Corporation Group
For the year ended 31 December 2020
(expressed in thousands of Euroland currency units,
except per share amounts)
Telling the COVID Story
For the purposes of these Example Financial Statements, commentary has been provided on the potential impacts of
COVID-19 on the different areas of the financial statements for balances and disclosures. The ordering of the notes could
potentially change this year if the impact of COVID-19 changes their significance or importance (for example, notes on
going concern, impairment or events after the reporting date). In these Example Financial Statements, no changes to the
order of the notes were made. When making disclosures in financial statements, the more uncertain the environment, the
more detailed the disclosures of the assumptions and assessments used to prepare the financial statements should be. (For
example useful lives, discount rates as a result of changes in market conditions, government grants received etc.).
IAS 1 sets out the basic principles governing the form and content of financial statements and related notes. The notes
shall be presented in a systematic manner, and disclose information about the specific accounting policies used, the basis
of preparation of the financial statements, and any other information either required by other IFRS, or necessary to the
understanding of the statements (IAS 1.113 and IAS 1.117).
An entity applies materiality when preparing the financial statements, and there is no need to disclose immaterial information
even when it is explicitly required by an IFRS (IAS 1.31). An entity should apply judgement when determining the best way to
present the notes to the financial statements and should consider how decisions made will impact the understandability and
comparability of the financial statements (IAS 1.113).
For convenience, the Example Financial Statements generally follow the order suggested by IAS 1.114(c) although we
encourage an entity to consider alternatives that may enhance the understandability of the financial statements to readers.
For example, in recent years there has been a growing trend towards integrating information about accounting policies and
significant judgements and estimates with the related notes.
While a traditional narrative format has been adopted for use in the Example Financial Statements, an entity should consider
whether alternative presentation formats (such as presenting the information in a table) would enhance readers’ understanding.