Illustrative IFRS consolidated financial statements for 2019 year ends

Publication date: 14 Jun 2019


This publication presents PwC's illustrative consolidated financial statements for a fictitious listed company, containing illustrative disclosures for as many common scenarios as possible. The accounts comply with IFRS as issued at 31 May 2019 and that apply to financial years commencing on or after 1 January 2019.

There is a general view that financial reports have become too complex and difficult to read and that financial reporting tends to focus more on compliance than communication. At the same time, users’ tolerance for sifting through information to find what they need continues to decline. To demonstrate what companies could do to make their financial report more relevant, we've ‘streamlined’ the financial report to reflect some of the best practices that have been emerging globally over the past few years. In particular:

Information is organised to clearly tell the story of financial performance and make critical information more prominent and easier to find.

Additional information is included where it is important for an understanding of the performance of the company.

This latest edition includes:

Most companies will have to make changes to their disclosures in 2019, to reflect the adoption of IFRS 16 Leases. This publication shows how the adoption of the standard may affect a corporate entity. Note 26 provides example disclosures which explain the impact of the changes in accounting policy. The new leasing disclosures are illustrated in note 8(b) and in note 8(c). You can find new or revised disclosures by looking for shading in the reference column.

In compiling the illustrative disclosures, we have made a number of assumptions in relation to the adoption of IFRS 16. In particular, VALUE IFRS Plc:

  • has applied the simplified transition approach and has not restated comparative information
  • does not have any right-of-use assets that would meet the definition of investment property
  • does not have any finance leases as lessor, and
  • did not have to recognise any adjustments in relation to the assets held as lessor under operating leases.

For further specific assumptions made, please refer to the commentary to note 26.

In addition, we have added comparative information to some of the financial instruments disclosures that were new last year and where comparatives were therefore not required (see note 7 and note 12). We have also made a few improvements to existing disclosures.

The other amendments to standards that apply from 1 January 2019 and that are unrelated to the adoption of IFRS 16 are primarily clarifications, see Appendix D. We have assumed that none of them required a change in VALUE IFRS Plc’s accounting policies. However, this assumption will not necessarily apply to all entities. Where there has been a change in policy that has a material impact on the reported amounts, this would also need to be disclosed in note 26.

While the IASB issued a revised Conceptual Framework for Financial Reporting in March 2018 which will be used immediately by the Board and Interpretations Committee in developing new pronouncements, preparers will only commence referring to the new framework from 1 January 2020. We have therefore continued referring to the existing framework in this publication.

VALUE IFRS Plc generally adopts standards early if they clarify existing practice but do not introduce substantive changes. These include standards issued by the IASB as part of the improvements programme or the amendments made to IAS 1 and IAS 8 in relation to the definition of material.

As required under IFRS, the impacts of standards and interpretations that have not been early adopted and that are expected to have a material effect on the entity are disclosed in accounting policy note 25(a). A summary of all pronouncements relevant for annual reporting periods ending on or after 31 December 2019 is included in Appendix D. For updates after the cut-off date for our publication, see

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