IFRS financial statements consist of the consolidated statement of financial position, statement of comprehensive income, cash flow statement, a statement of changes in equity, and explanatory notes. Note disclosures must include:
- Accounting policies followed
- Judgments made by management in applying critical accounting policies
- Key assumptions about the future and other important sources of estimation uncertainty
Comparative information is only required for the preceding period. There is no IFRS requirement to present the parent entity’s financial statements in addition to the consolidated financial statements. There are also no IFRS requirements to produce interim financial statements. Consolidation is based on control, which is the power to govern the financial and operating activities of another entity.3 Generally, all subsidiaries must be consolidated even if control is temporary or the subsidiary operates under severe longterm funds-transfer restrictions. Fair presentation is required. IFRS may be overridden in extremely rare circumstances to achieve a fair presentation. When they are, the nature, reason, and financial impact of the departure from IFRS must be disclosed.
