Professional Documents
Culture Documents
Financial Reporting
Department for Financial Reporting and Audit
Introduction
CONTENTS
1 Introduction to IFRS in Europe and IFRS financial statements
2 Business combinations
6 Corporate governance
▪ Weygandt/Kimmel/Kieso: Financial and Managerial Accounting, 3rd edition, Wiley 2018: ch. 1
▪ Weetman: Financial and Management Accounting: An Introduction, 7th edition, Pearson 2017: ch. 2, 3
▪ READINGS
▪ Elliott/Elliott: Financial Accounting and Reporting, 19th edition, Pearson 2019: ch. 3, 5, 6, 7
▪ Videos on https://www.principlesofaccounting.com/ (Chapter 15)
▪ Videos on youtube/IFRSbox
− Conceptual Framework for Financial Reporting 2018 (IFRS FW) https://www.youtube.com/watch?v=v56_VJkjAX4
− IAS 1 Presentation of Financial Statements – summary https://www.youtube.com/watch?v=DlfQWi9T264
− IAS 7 Statement of Cash Flows https://www.youtube.com/watch?v=NMubNKCQV0A
French GAAP
– France
Companies
UK GAAP or IFRS
LISTED
IFRS
MANDATORY German GAAP – United Kingdom
since 2005 w/exceptions
– Germany
IFRS MANDATORY
– Italy
IFRS or French GAAP French GAAP
NON-LISTED
Companies
▪ IAS: International Accounting Standards: “old standards” (IAS 1 to IAS 41, 25 still active),
issued before 2001
▪ IFRS: International Financial Reporting Standards (IFRS 1 - IFRS 17, 16 active),
issued since 2001
▪ SIC: Standing Interpretations Committee: “old interpretations” (5 still active),
issued before 2001
▪ IFRIC: International Financial Reporting Interpretations Committee (IFRIC 1 - IFRIC 23, 15 active),
issued since 2001
SIC
IFRIC
IAS
IFRS
Financial Reporting
BALANCE SHEET
EXAMPLE 1
Air France-KLM,
Annual Report 2020
BALANCE SHEET
EXAMPLE 1
Air France-KLM,
Annual Report 2020
▪ Income Statement
▪ An entity shall recognize any items of income or expense in a period in profit or
loss (P/L) (mind exceptions), IAS 1.88
▪ Presentation of the analysis of expenses recognized in P/L based on (IAS 1.99):
H1: gains and losses are recognised in net income H2: gains and losses are recognised in OCI
Balance sheet Balance sheet
Telia Company,
Annual Report 2020
▪ Objectives:
▪ to improve the accessibility, the analysis and the comparability of the consolidated financial
statements
▪ to allow analysts and investors to make better use of the information provided by
companies,
▪ to enhance the transparency of the European Union's capital markets.