REQUIREMENTS AND EXAMPLES

The contents of Section 8 Notes to the Financial Statements of the IFRS for SMEs are set out below

and shaded grey. Terms defined in the Glossary of the IFRS for SMEs are also part of the

requirements. Those terms are in bold type the first time they appear in the text of Section 8.

The notes and examples inserted by the IASC Foundation education staff are not shaded.

Other annotations inserted by the IASC Foundation staff are presented within square brackets

in bold italics. The insertions made by the staff do not form part of the IFRS for SMEs and have

not been approved by the IASB.

Scope of this section

8.1 This section sets out the principles underlying information that is to be presented in the

notes to the financial statements and how to present it. Notes contain information in

addition to that presented in the statement of financial position, [Refer: Section 4]

statement of comprehensive income [Refer: Section 5], income statement

(if presented) [Refer: Section 5], combined statement of income and retained earnings

(if presented) [Refer: Section 6], statement of changes in equity [Refer: Section 6], and

statement of cash flows [Refer: Section 7]. Notes provide narrative descriptions or

disaggregations of items presented in those statements and information about items that

do not qualify for recognition in those statements. In addition to the requirements of this

section, nearly every other section of this IFRS requires disclosures that are normally

presented in the notes.

Structure of the notes

8.2 The notes shall:

(a) present information about the basis of preparation of the financial statements and the

specific accounting policies used, in accordance with paragraphs 8.5–8.7;

(b) disclose the information required by this IFRS that is not presented elsewhere in the
financial statements; and

(c) provide information that is not presented elsewhere in the financial statements but is

relevant to an understanding of any of them