Guide to annual financial statements – Illustrative disclosures

143 Pages·2015·2.9 MB·English

IFRS
Guide to
annual fnancial
statements –
Illustrative
disclosures
OCI
September 2015 STATEMENT
SUBSIDIARY
DISPOSAL
kpmg.com/ifrs IFRS EQUITY
ASSETS OPERATING SEGMENTS
FAIR VALUE NON-CONTROLLING INTERESTS
PRESENTATION
PROVISIONS
ESTIMATES DISCONTINUED OPERATIONS
LEASES
JUDGEMENT
OFFSETTING
ACCOUNTING POLICIES
SHARE-BASED PAYMENT PERFORMANCE TRANSACTIONS
CARRYING AMOUNT SHARE-BASED PAYMENT
UPDATE FINANCIAL INSTRUMENTS ACCOUNTING POLICIES
L O A N S B O R R O W I N G S FINANCIAL POSITION CASH FLOWS
IMPAIRMENT
COST CONSOLIDATION FAIR PRESENTATION
PENSION PROFIT OR LOSS IFRS
ASSUMPTIONS
REVENUE ANNUAL
DISCONTINUED OPERATIONS DERIVATIVES
PRESENTATION GROUP
ASSOCIATE IFRS
2015NOTES
FAIR VALUE
BUSINESS COMBINATIONS JOINT ARRANGEMENTS
CASH EQUIVALENTS FAIR VALUE MEASUREMENT ACCOUNTING POLICIES
CONTINGENCY RELATED PARTY
CURRENT
TRANSACTIONS INTANGIBLE ASSETS
GOING CONCERN PERFORMANCE OFFSETTING
EPS PROFIT OR LOSS MATERIALITY
INVENTORIES ACQUISITIONTAX
CAPITAL COMPARATIVE VALUATION UPDATE
ASSETS MATERIALITY
CGU PENSION
NCI FAIR VALUE
PERFORMANCE
BUSINESS COMBINATIONS
OPERATING SEGMENTS
GOODWILL ESTIMATESOFFSETTINGOCI
CASH FLOWS PROFIT OR LOSS
LIABILITIES CONSOLIDATION
GOING CONCERN
UNCONSOLIDATED STRUCTURED ENTITIESFINANCIAL POSITIONPRESENTATION
DISCLOSURES
SIGNIFICANT PROPERTY ACQUISITION ASSUMPTIONS COMPARATIVE EQUITY
FINANCIAL POSITION SHARE-BASED PAYMENT EPS JOINT ARRANGEMENTS DISCLOSURES HELD-FOR-SALE PENSION
Contents
About this guide 2
References and abbreviations 3
Independent auditors’ report 4
Consolidated fnancial statements 6
Financial highlights 7
Consolidated statement of fnancial position 8
Consolidated statement of proft or loss and
other comprehensive income 10
Consolidated statement of changes in equity 12
Consolidated statement of cash fows 14
Notes to the consolidated fnancial statements 16
Appendices
I New standards or amendments for 2015 and
forthcoming requirements 127
II Presentation of comprehensive income
– Two‑statement approach 129
III Statement of cash fows – Direct method 131
IV Other disclosures not illustrated in the
consolidated fnancial statements 132
Keeping you informed 138
Acknowledgements 140
Notes
Basis of preparation 16 Accounting policies 109
1. Reporting entity 16 42. Basis of measurement 109
2. Basis of accounting 16 43. Correction of errors 110
3. Functional and presentation currency 16 44. Signifcant accounting policies 111
4. Use of judgements and estimates 16 45. Standards issued but not yet effective 126
Performance for the year 18
5. Operating segments 18
6. Discontinued operation 25
7. Revenue 26
8. Income and expenses 27
9. Net fnance costs 29
10. Earnings per share 30
Employee benefts 32
11. Share‑based payment arrangements 32
12. Employee benefts 35
13. Employee beneft expenses 39
Income taxes 40
14. Income taxes 40
Asets 45
15. Biological assets 45
16. Inventories 49
17. Trade and other receivables 50
18. Cash and cash equivalents 51
19. Disposal group held for sale 52
20. Property, plant and equipment 53
21. Intangible assets and goodwill 56
22. Investment property 61
23. Equity‑accounted investees 62
24. Other investments, including derivatives 64
Equity and liabilities 65
25. Capital and reserves 65
26. Capital management 68
27. Loans and borrowings 69
28. Trade and other payables 72
29. Deferred income/revenue 73
30. Provisions 74
Financial instruments 76
31. Financial instruments – Fair values and risk
management 76
Group composition 93
32. List of subsidiaries 93
33. Acquisition of subsidiary 94
34. NCI 98
35. Acquisition of NCI 100
Other information 101
36. Loan covenant waiver 101
37. Operating leases 102
38. Commitments 103
39. Contingencies 104
40. Related parties 105
41. Subsequent events 108
2 | Guide to annual n� ancial statements – Illustrative disclosures
About this guide
hT is guide has been produced by the KPMG International tS andards Group p( art o f KPMG IFRG Limited ) and the viesw
epx ressed herein are those o f the KPMG International tS andards Group.
It helps entities to prepare n� ancial statements in accordance iw th IFR,S illustrating one possible of rmat of r n� ancial
statements of r a c� titious multinational corporation involved in general business. uO r hypothetical corporation t( he
G‘ roup )’ has been applying IFR S of r some time – i.e. it is not a r� st - time adopter o f IFR.S For more inof rmation on adopting
IFR S of r the r� st time, see chapter .6 1 in the 12 th edition 20151/ 6 o f our publication Insights into IFRS.
Standards covered
hT is guide ree� cts standards and interpretations that have been issued by the IA BS as at 1 August 2015 and that are
reuq ired to be applied by an entity iw th an annual reporting period beginning on 1 aJ nuary 2015 c‘( urrently eef f ctive
reuq irements.)’ hT e early adoption o f standards that are eef f ctive of r annual reporting periods beginning atf er 1aJ � nuary
2015 of‘( rthcoming reuq irements )’ has not been illustrated.
hT is guide does not illustrate the reuq irements o f IFR S 4 Insurance Contracts, IFR S 6 Exploration for and Evaluation of
Mineral Resources, IA S 2 6 Accounting and Reporting by Retirement Beneft Plans or IA S 43 Interim Financial Reporting.
IA 43 �S reuq irements are illustrated in our Guide to condensed interim fnancial statements – Illustrative disclosures.
In addition, IFR S and its interpretation change over time. Accordingly, this guide should not be used as a substitute of r
reef rring to the standards and interpretations themselves.
An entity should also have regard to applicable legal and regulatory reuq irements. hT is guide does not consider the
reuq irements o f any particular uj risdiction. For eax mple, IFR S does not reuq ire the presentation o f separate n� ancial
statements of r the parent entity, and this guide includes only consolidated n� ancial statements.
What’s new in 2015?
Appendi x I provides a comprehensive list o f ne w reuq irements, distinguishing betew en those that are eef f ctive of r an
entity iw th an annual reporting period beginning on 1 aJ nuary 2015, and those iw th a later eef f ctive date. hT e Group has
no transactions that ow uld be aef f cted by these ne w amendments ; thereof re, these reuq irements are not illustrated in
this guide. eN vertheless, the ne w disclosure reuq irements in respect o f operating segments a and related partiesa are
ree� cted in the epx lanatory notes.
Need for judgement
hT is guide is part o f our suite o f publications – Guides to fnancial statements – and specic� ally of cuses on compliance
iw th IFR.S Although it is not ehx austive, this guide illustrates the disclosures required by IFR S of r one hypothetical
corporation ; of r ease o f illustration, the disclosures here are generally presented iw thout regard to materiality.
hT is guide should not be used as a boiler plate template. hT e preparation o f an entitys’ onw n� ancial statements reuq ires
uj dgement, in terms o f the choice o f accounting policies, ho w the disclosures should be tailored to ree� ct the entitys’
specic� circumstances, and the materiality o f disclosures in the contetx o f the organisation.
Applying the concept of materiality to disclosures
An entity needs to consider the concept o f materiality hw en preparing the notes to its n� ancial statements ; it is not
appropriate simply to apply the disclosure reuq irements in a standard iw thout considering materiality. An entity does not
need to provide a specic� disclosure under IFR S i f the inof rmation resulting rf om that disclosure is not material. Also, an
entity has to taek care not to reduce the understandability o f its n� ancial statements by obscuring material inof rmation
iw th immaterial inof rmation or by aggregating material items that have dief f rent natures and uf nctions.
For eax mple, a standard may provide specic� disclosures of r a material item in the n� ancial statements, but even i f the
item is material, this does not mean that all o f the disclosures specie� d in that standard iw ll be material of r that item. An
entity applies the materiality concept on a disclosure- by- disclosure basis.
Step-up in the quality of fnancial statements
Investors continue to as k of r a step - up in the uq ality o f business reporting so entities should be careuf l not to become
buried in compliance to the ecx lusion o f relevance. In preparing its n� ancial statements, an entity needs to ek ep in mind
its iw der responsibilities of r reporting this inof rmation in the most meaninguf l aw y. For more inof rmation, see our Better
Business Reporting ew bsite.
a. Annual Improvements to IFRSs 2010–2012 Cycle.
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APPENDICES NOTES PRIMARY STATEMENTS AUDITORS’ REPORT INTRODUCTION
Reef rences and abbreviations | 3 | 3
References and abbreviations
Reef rences are included in the letf - hand margin o f this guide to identiyf their sources. Generally, the reef rences relate only
to presentation and disclosure reuq irements.
IAS 1.82(a) Paragraph 28 a( ) o f IA S 1.
[IAS 39.46(a)] Paragraph a(64 ) o f IA S .93 hT e suq are bracek ts are used only in oN te 4 to the n� ancial statements
s( ignic� ant accounting policies ) to indicate that the paragraph relates to recognition and
measurement reuq irements, as opposed to presentation and disclosure reuq irements.
Insights 2.3.60.10 Paragraph 2..3 06 .10 o f the 12 th edition 20151/ 6 o f our publication Insights into IFRS.
hT e of lloiw ng marik ngs in the letf - hand margins indicate the of lloiw ng.
In the contetx o f consolidated n� ancial statements, the disclosures in respect o f operating
segments oN( te 5 ) and PE S s( tatement o f prot� or loss and ICO , and oN te 10 ) apply only i f
thep� arent:
• has debt or euq ity instruments o( perating segments ) or ordinary sharesp/ otential ordinary shares
PE( )S that are traded in a public marek t – i.e. a domestic or of reign stoc k ecx hange or an over - the-
counter marek t, including local and regional marek ts ; or
• l� es, or is in the process o f l� ing, its n� ancial statements iw th a securities commission or other
regulatory organisation of r the purpose o f issuing any class o f instruments in a public marek t.
Maoj r changes related to reuq irements that are ne w in 2015.
hT e of lloiw ng abbreviations are used otf en in this guide.
GC U aC sh - generating unit
IBE ADT aE rnings beof re interest, ta,x depreciation and amortisation
PE S aE rnings per share
IU IFR S Interpretations oC mmittee publication IFRIC Update
ICN oN n - controlling interests
oN tes oN tes to the n� ancial statements
ICO tO her comprehensive income
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APPENDICES NOTES PRIMARY STATEMENTS AUDITORS’ REPORT INTRODUCTION
4 | Guide to annual n� ancial statements – Illustrative disclosures
[Name of the Company]
Independent auditors’ report
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APPENDICES NOTES PRIMARY STATEMENTS AUDITORS’ REPORT INTRODUCTION
Independent auditors ’ report | 5
a
Independent auditors ’ report
[Addressee]
eW have audited the accompanying consolidated n� ancial statements o f [ Name of Company ] t( he
oC‘ mpany,)’ hw ich comprise the consolidated statement o f n� ancial position as at 13 eD cember
2015, the consolidated statements o f prot� or loss and other comprehensive income, changes in
euq ity and cash o� sw of r the year then ended, and notes, comprising a summary o f signic� ant
accounting policies and other epx lanatory inof rmation.
Management’s responsibility for the consolidated fnancial statements
Management is responsible of r the preparation and af ir presentation o f these consolidated
n� ancial statements in accordance iw th International Financial Reporting tS andards, and of r such
internal control as management determines is necessary to enable the preparation o f consolidated
n� ancial statements that are rf ee rf om material misstatement, hw ether due to rf aud or error.
Auditors’ responsibility
uO r responsibility is to epx ress an opinion on these consolidated n� ancial statements based on
our audit. eW conducted our audit in accordance iw th International tS andards on Auditing. hT ose
standards reuq ire that ew comply iw th ethical reuq irements and plan and perof rm the audit to
obtain reasonable assurance about hw ether the consolidated n� ancial statements are rf ee rf om
material misstatement.
An audit involves perof rming procedures to obtain audit evidence about the amounts and
disclosures in the consolidated n� ancial statements. hT e procedures selected depend on our
uj dgement, including the assessment o f the rissk o f material misstatement o f the consolidated
n� ancial statements, hw ether due to rf aud or error. In maik ng those ris k assessments, ew
consider internal control relevant to the entitys’ preparation and af ir presentation o f the
consolidated n� ancial statements in order to design audit procedures that are appropriate in
the circumstances, but not of r the purpose o f epx ressing an opinion on the eef f ctiveness o f the
entitys’ internal control. An audit also includes evaluating the appropriateness o f accounting
policies used and the reasonableness o f accounting estimates made by management, as ew ll as
evaluating the overall presentation o f the consolidated n� ancial statements.
eW believe that the audit evidence ew have obtained is suc� f ient and appropriate to provide a
basis of r our audit opinion.
Opinion
In our opinion, the consolidated n� ancial statements give a true and af ir vie w o f the consolidated
n� ancial position o f the oC mpany as at 13 eD cember 2015, and o f its consolidated n� ancial
perof rmance and its consolidated cash o� sw of r the year then ended in accordance iw th
International Financial Reporting tS andards.
[Name of auditors’ frm]
[Date of report]
[Address]
a. hT is eax mple report has been prepared based on International tS andard on Auditing 07 0 Forming an Opinion and
Reporting on Financial Statements. Its of rmat does not ree� ct the legal reuq irements o f any particular uj risdiction.
© 2015 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved.
APPENDICES NOTES PRIMARY STATEMENTS AUDITORS’ REPORT INTRODUCTION
6 | Guide to annual n� ancial statements – Illustrative disclosures
[Name of the Company]
Consolidated fnancial
statements
31 December 2015
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APPENDICES NOTES PRIMARY STATEMENTS AUDITORS’ REPORT INTRODUCTION
IlIllulusstrtaratitvivee d disiscclolossuureress – P – Frimnaanrcyi aslt hatigehmliegnhts | | 7
Financial highlights
REVENUE OPERATING BASIC DIVIDENDS
PROFIT EARNINGS PER SHARE
PER SHARE
(Thousand euro) (Thousand euro) (Euro) (Cent)
6.3% 7.4% 0.53 20.97
2015 2014 2015 2014 2015 2014 2015 2014
REVENUE REVENUE
BY REGION* BY SEGMENT*
2015 2015
Other countries Other
9% segments 4%
Forestry 4%
[Country X]
Packaging
29%
(discontinued)
US 20% 7%
Recycled
Papers Standard
27% Papers
58%
Netherlands
Germany 21%
21%
* Includes revenues o f discontinued operation s( ee oN te .)6
* Includes revenues of discontinued operation (see Note 6).
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102,716
96,636
10,334
9,624
2.26
1.73
25.25
4.28
APPENDICES NOTES PRIMARY STATEMENTS AUDITORS’ REPORT INTRODUCTION
8 | Guide to annual n� ancial statements – Illustrative disclosures
a
oC nsolidated statement o f n� ancial position
31 December 31 December 1 January
Note 2015 2014 2014
IAS 1.10(a), (ea)–(f), b b, c
In thousands of euro Restated* Restated*
38–38A, 40A–40B,113
Assets
IAS 1.54(a) Property, plant and euq ipment 20 26,586 13 ,094 ,43 739
IAS 1.54(c) Intangible assets and goodiw ll 21 6,226 ,4 16 5,24 9
IAS 1.54(f) iB ological assets 15 4,698 ,4 025 ,3 04 7
IAS 1.54(h) rT ade and other receivables 17 213 - -
IAS 1.54(b), 17.49 Investment property 22 1,370 250 150
IAS 1.54(e) uqE ity - accounted investees 23 2,489 1,849 1,503
d
IAS 1.54(d) tO her investments, including derivatives 24 3,631 ,3 525 ,3 221
IAS 1.54(o), 56 eD ef rred ta x assets 14 2,116 2,050 489
IAS 1.55 mE ployee benet� s 12 671 137 17 6
e
IAS 1.60 Non-current assets 48,000 ,84 293 50,4 73
IAS 1.54(g) Inventories 16 11,603 12,119 11,578
IAS 1.54(f) iB ological assets 15 32 13 29
d
IAS 1.54(d) tO her investments, including derivatives 24 662 1,023 749
IAS 1.54(n) uC rrent ta x assets 34 06 -
IAS 1.54(h) rT ade and other receivables 17 32,402 22,56 7 1,756 1
IAS 1.55 Prepayments 330 1,200 598
IAS 1.54(i) aC sh and cash euq ivalents 18 1,505 1,58 0 2,529
IFRS 5.38, 40, IAS 1.54(j) Assets held of r sale 19 14,400 - -
e
IAS 1.60 Current assets 60,968 ,93 057 ,3 836
Total assets 108,968 ,78269 ,48 012
* eS e oN te .34
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APPENDICES NOTES PRIMARY STATEMENTS AUDITORS’ REPORT INTRODUCTION