Illustrative IFRS consolidated financial statements for 2018 year ends
This publication presents the sample annual financial reports of a fictional listed company, VALUE IFRS Plc. It illustrates the financial reporting requirements that would apply to such a company under International Financial Reporting Standards as issued at 31 May 2018. For the purposes of this publication, VALUE IFRS Plc is listed on a fictive Stock Exchange and is the parent entity in a consolidated entity.
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 of this fictional company to reflect some of the best practices that have been emerging globally over the past few years.
An overview of financial reporting 2016
This guide contains a general overview of the most relevant requirements and standards with regard to the preparation of financial statements under Dutch GAAP. This publication has been written from the perspective of the foreign investor (including multinationals with intermediate holdings) in the Netherlands. It aims to address many of the recurring questions raised by our clients. The guide provides an accessible overview of financial reporting for corporates based in the Netherlands, including relevant aspects of law. It also provides a basic understanding –and beyond accounting requirements - of the key aspects of establishing and operating a company in the Netherlands for investors
Similarities & differences Dutch GAAP vs. IFRS
This publication is designed to highlight some of the key differences between Dutch GAAP and IFRS. We deal with Dutch GAAP as a starting point whereas we elaborate on the differences with IFRS in the adjacent IFRS column.
Dutch GAAP includes the Dutch Civil Code, Book 2, Part 9 (‘BW 2 T9’) (including: the General Administrative Order on model formats and the Decree on valuations) and the Dutch Accounting Standards (DAS) (‘Richtlijnen voor de jaarverslaggeving’). This publication is based on Dutch Law and the DAS version that is applicable for financial statements on annual periods beginning on or after 1 January 2018. The Dutch GAAP column deals with the recognition and measurement requirements for medium-sized and large entities.
This publication covers the standards IFRS 9 (financial instruments), 15 (revenue from contracts with customers), 16 (leasing) and 17 (insurance contracts. IFRS 9 and 15 are effective as from 1 January 2018. IFRS 16 is effective from 1 January 2019, therefore, IAS 17, the current lease standard is included as well. A summary of IFRS 17 is provided in this publication.
The impact of Brexit on financial statements and management report
Brexit may impact financial statements as many rules will no longer apply to British companies once the United Kingdom has left the EU. Whether, and to what extent, new agreements will be reached between the Netherlands and the UK is not yet known. What do we know about potential issues so far? Some facilities provided for in European regulations require a company to have its registered office in a EU Member State.
This could affect UK registered companies after a Brexit. This publication discusses these types of consequences in more detail. Brexit may naturally also impact the performance of businesses in other ways, for example in the area of exchange rates, a possible economic downturn in the UK, different or more stringent import or export requirements, etc. These factors will be addressed in this publication as well.