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International Accounting Standards

Disclosure Checklist
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International Accounting Standards Disclosure Checklist 2001

International Accounting Standards


Disclosure Checklist 2001
Name of reporting entity ....................................................... Balance sheet date .....................................
This checklist outlines the disclosures required by all International Accounting Standards and Interpretations
published up to and including September 2000. This disclosure checklist does not deal with the measurement
requirements of International Accounting Standards; a thorough reading of those Standards that are relevant
to the reporting entity’s circumstances will be necessary.
This disclosure checklist is intended for general reference purposes only; it is not a substitute for reading the
Standards themselves, or for professional judgement as to the fairness of presentation. Depending on the
circumstances, further specific information may be required in order to ensure fair presentation under
International Accounting Standards. Furthermore, the disclosure checklist does not cover disclosures
required by national or local laws and professional bodies.
International Accounting Standards that come into force in 2001
This checklist includes the following International Accounting Standards, which come into force for periods
beginning on or after 1 January 2001:
• IAS 39, Financial Instruments: Recognition and Measurement; and
• IAS 40, Investment Property.
Format of IAS Disclosure Checklist
The IAS disclosure checklist is presented in a format designed to facilitate the collection and review of
disclosures for each component of the financial statements. Where appropriate, all disclosures have been
grouped by subject. Additional notes and explanations in the checklist are shown in italics. The references
in the left margin of the checklist represent the paragraphs of the Standards in which the disclosure
requirements appear – for example, ‘8p40’ indicates IAS 8 paragraph 40. The designation ‘DV’ means
‘Disclosure voluntary’ and indicates that the relevant IAS encourages, but does not require the disclosure.
The box in the right margin of each page is designed to assist in completing the checklist. In the left-hand
box (headed ‘Y-NA-NM’) one of the following should be entered for each disclosure item:
• Y (‘YES’) – the appropriate disclosure has been made; or
• NA (‘Not Applicable’) – the item does not apply to the reporting entity; or
• NM (‘Not Material’) – the item is regarded as not material to the financial statements of the reporting entity.
Materiality is defined in paragraphs 29 and 30 of the IASC’s Framework for the Preparation and Presentation
of Financial Statements, and each IAS contains a statement that it is not intended to apply to immaterial items.
The right-hand box on each page (headed ‘REF’) can be used to insert a reference to the relevant part of the
financial statements (for example, Note 7) for all items that have been marked ‘Y’ in the left-hand box.
Other publications on IAS
The following publications on International Accounting Standards have been published by
PricewaterhouseCoopers and are available from your nearest PricewaterhouseCoopers office:
International Accounting Standards – A Pocket Guide
International Accounting Standards – Illustrative Corporate Financial Statements
International Accounting Standards – Illustrative Bank Financial Statements
International Accounting Standards – Understanding IAS 39
International Accounting – Similarities & Differences – IAS, US GAAP and UK GAAP
and on wider aspects of international reporting:
Audit Committees – Good Practices for Meeting Market Expectations
Reporting Progress – Good Practices for Meeting Market Expectations

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Section A – Disclosures required by all entities in all situations


Page
A1 General disclosures 5-7
A2 Accounting policies
(1) General disclosures 7
(2) Specific policies 7-10
(3) Changes in accounting policy 10
A3 Income statement (and related notes)
(1) General disclosures 11-12
(2) Individual items 12-14
(3) Tax 14
(4) Extraordinary items 14
(5) Statement of recognised gains and losses 14-15
A4 Statement of changes in shareholders’ equity 15-17
A5 Balance sheet (and related notes)
(1) General disclosures 17-18
(2) Property, plant and equipment 18-19
(3) Investment property 20-21
(4) Intangible assets excluding goodwill 21-22
(5) Goodwill and negative goodwill 22-23
(6) Impairment of assets 23-24
(7) Associates 24
(8) Joint ventures 24-25
(9) Subsidiaries 25
(10) Investments – financial assets 25-26
(11) Inventory 26-27
(12) Trade and other receivables 27
(13) Tax 27-28
(14) Trade and other payables 29
(15) Provisions 29-30
(16) Post employment benefits – defined benefit plans 30-31
(17) Lease liabilities 32-33
(18) Borrowings and other liabilities 33
(19) Government grants 33
(20) Related party transactions 33-34
(21) Equity compensation benefits 34-35
(22) Commitments 36
(23) Contingencies 36
(24) Events after the balance sheet date 37
A6 Cash flow statement
(1) General presentation 38
(2) Individual items 38-39
A7 Business combinations and disposals
(1) General disclosures 40
(2) Acquisitions 40-41
(3) Disposals 41
(4) Unitings of interest (mergers) 41

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A8 Financial instruments
(1) General disclosures 42-43
(2) Interest rate risk and credit risk 43
(3) Fair value hedges 44
(4) Cash flow hedges 44-45
(5) Available-for-sale financial assets 45
(6) Fair values 45-46
(7) Profit and loss disclosure 46
(8) Securitisation 47
Section B – Additional disclosures required by listed companies
B1 Segment reporting
(1) General disclosures 49
(2) Primary segment format 49-51
(3) Secondary segment format 51-52
(4) Other disclosures 52
B2 Earnings per share 53
Section C – Disclosures required by all entities but only in certain situations
If any of these items apply to the reporting entity, the appropriate parts of section C should be completed:
C1 Construction contracts 55
C2 Accounting by a lessor 55-56
C3 Discontinuing operations 56-57
C4 Fundamental errors 57-58
C5 Reporting in currency of hyperinflationary economies 58
C6 Information reflecting the effects of changing prices 58-59
C7 Uncertainties about going concern 59
C8 Departure from an International Accounting Standard 59-60
C9 Change of year-end 60
C10 Intermediate parent company – consolidated financial statements not presented 60
Section D – Additional disclosures required by banks and similar financial institutions
D1 Income statement 61
D2 Balance sheet 61-62
D3 Other disclosures 62-63
Section E – Additional disclosures required by retirement benefit plans 65-66
Section F – Suggested disclosures for financial review outside the financial statements 67-69
Section G – Disclosures for interim financial report 71-72

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Section A

Disclosures required by all entities in all situations

Y-NA-NM REF
A1 General disclosures
1p7 1 The financial statements should include the following components:
(a) income statement;
(b) balance sheet;
(c) a statement showing either:
(i) all changes in equity; or
(ii) changes in equity except those arising from capital
transactions with owners and distributions to owners, ie a
statement of recognised gains and losses;
(d) cash flow statement;
(e) accounting policies; and
(f) notes to the financial statements.
1p44 2 Financial statements should be clearly identified and distinguished
from other information in the annual report (for example, by
providing an index to the annual report).
1p46 3 Each component of the financial statements should be clearly
identified.
10p16 4 The notes to the financial statements should include the
following disclosures:
(a) the date when the financial statements were authorised for
issue;
(b) the body who gave that authorisation; and
(c) if the enterprise’s owners or others have the power to amend
the financial statements after issue.
1p46 5 The following information should be prominently displayed and
repeated when it is necessary for a proper understanding of the
information presented:
(a) name of the reporting enterprise or other means of
identification;
(b) whether the financial statements cover the individual enterprise
or a group;

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(c) balance sheet date or the period covered by the financial
statements, whichever is appropriate to the related component
of the financial statements;
(d) reporting currency; and
(e) level of precision (eg thousands or millions of units of the
reporting currency) used in the presentation of figures in the
financial statements.
1p11 6 Disclose that the financial statements comply with International
Accounting Standards.
Financial statements should not be described as complying with
IAS unless they comply with all the requirements of each
applicable Standard and each applicable interpretation of the
Standing Interpretations Committee.
21p43 7 Measurement/reporting currency:
SIC19p8 (a) when the measurement or reporting currency is different from
the currency of the country in which the enterprise is
domiciled, the reason for using a different currency;
(b) the reason for any change in the measurement or reporting
currency.
1p91 8 The notes to the financial statements of an enterprise should:
(a) present information about:
i) the basis of preparation of the financial statements; and
ii) the specific accounting policies selected and applied for
significant transactions and events;
(b) disclose the information required by International Accounting
Standards that is not presented elsewhere in the financial
statements; and
(c) provide additional information which is not presented on the
face of the financial statements but that is necessary for a fair
presentation.
1p92 9 Present the notes to the financial statements in a systematic manner
(see IAS 1 p94).
1p92 10 Ensure that each item on the face of the balance sheet, income
statement and cash flow statement is cross-referenced to any
related information in the notes.
11 Comparatives:
1p38 (a) unless an IAS permits or requires otherwise, disclose
comparative information;
1p38 (b) include comparative information in narrative and descriptive
information when it is relevant to an understanding of the
current period’s financial statements;
1p40 (c) disclose nature, amount of, and reason for, any reclassification
of comparative amounts; and
1p40 (d) when it is impracticable to reclassify comparative amounts,
disclose the reason for not reclassifying and the nature of the
changes that would have been made if amounts were reclassified.

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Y-NA-NM REF
12 Other general disclosures
If not disclosed elsewhere in the annual report, disclose the
following in the notes to the financial statements:
1p102(a) (a) domicile of the enterprise;
1p102(a) (b) legal form of the enterprise;
1p102(a) (c) its country of incorporation;
1p102(a) (d) the address of its registered office (or principal place of
business, if different from the registered office);
1p102(b) (e) description of the nature of the enterprise’s operations and its
principal activities;
1p102(c) (f) name of the parent enterprise (or other controlling shareholder);
1p102(c) (g) name of the ultimate parent enterprise; and
1p102(d) (h) number of employees – either as at the end of the period or the
average number for the period.
13 Certain International Accounting Standards such as IAS 1 and IAS 32
and SIC 6 encourage, but do not require, companies to present,
outside the financial statements, a financial review by management
which describes and explains the main features of the enterprise’s
financial performance and financial position and the principal
uncertainties it faces. For these disclosures, please refer to ‘’Section F
– Suggested disclosures for financial review outside the financial
statements’’.

A2 Accounting policies
(1) General disclosures
1p97 1 The accounting policies section should describe the following:
(a) the measurement basis (or bases) used in the accounts (eg
historical cost, historical cost modified by the revaluation of
certain non-current assets); and
(b) each specific accounting policy that is necessary for a proper
understanding of the financial statements.
27p21 2 If it is not practicable to use uniform accounting policies in preparing
the consolidated financial statements, disclose that fact and the
proportions of the items to which different accounting policies
are applied.
1p19 3 Disclose if any standards have been adopted by the reporting entity
before the effective date.
(2) Specific policies
1p99(b) 1 Consolidation principles, including accounting for
(a) subsidiaries; and
(b) associates.
1p99(c) 2 Business combinations.
1p99(d) 3 Joint ventures.
1p99(p) 4 Foreign currency transactions and translation.
1p99(e) 5 Property, plant and equipment – for each class:
16p60(a) (a) measurement basis (eg cost less depreciation, or revaluation
less subsequent depreciation);

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16p60(b) (b) depreciation method (eg straight line);
16p60(c) (c) the useful lives or the depreciation rate used; and
16p61(b) (d) the estimated costs of restoring the site of items of PPE.
6 Investment property:
1p99(h) (a) measurement basis (eg fair value or cost less depreciation);
40p66(a) (b) the criteria used to distinguish investment property from:
(i) owner-occupied property (PPE);
(ii) property held for sale (inventory);
40p66(b) (c) the methods and significant assumptions applied in estimating
the fair value of investment property.
7 Goodwill:
22p88(a) (a) amortisation period;
22p88(b) (b) if goodwill is amortised over more than 20 years, the reasons
for rebutting the presumption that the useful life of goodwill
will not exceed 20 years from initial recognition. Describe the
factors that played a significant role in determining the useful
life of the goodwill; see IAS 22 p48.
22p88(c) (c) if goodwill is not amortised on the straight line basis, the basis
used and the reason why that basis is more appropriate than the
straight line basis;
21p45 (d) method selected under IAS 21 p33 to translate goodwill and fair
value adjustments arising on the acquisition of a foreign entity.
8 Other intangible assets – for each class (distinguishing between
internally generated and acquired assets):
1p99(e) (a) accounting treatment (cost less amortisation, or, in very rare
cases, revaluation less subsequent amortisation);
38p107(a) (b) the useful lives or the amortisation rates used;
38p107(b) (c) amortisation methods used (eg straight line);
38p111(a) (d) if an intangible asset is amortised over more than 20 years, the
reasons for rebutting the presumption that the useful life of the
asset will not exceed 20 years from the date when the asset is
available for use. Describe the factors that played a significant
role in determining the useful life of the asset; see IAS 38 p80.
1p99(f) (e) capitalisation of other expenditure (severely restricted under
IAS 38).
1p99(k) 9 Research and development costs.
23p9, 29(a) 10 Borrowing costs (eg expensed or capitalised as part of
1p99(f) qualifying asset).
1p99(i) 11 Financial instruments (including financial assets and financial
32p47(b) liabilities) – see also A8 of this disclosure checklist for further
specific disclosures:
32p52 (a) for each class of financial asset, financial liability and equity
instrument (both recognised and unrecognised) accounting
policies for recognition and measurement (IAS 32 p53-55
provides a list of types of items which may require disclosure);
32p54 (b) measurement basis for items carried at fair value (eg quoted
market price, independent appraisal, discounted cash flow
method etc.);

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39p167(a) (c) the methods and significant assumptions applied in estimating
fair values of financial assets and financial liabilities that are
carried at fair value;
39p169(a) (d) policy for hedge accounting of financial instruments; and
(e) the financial risk management objectives and policies,
including the entity’s policy for hedging each major type of
forecasted transaction.
12 Investments:
1p99(i) (a) accounting policies including determination of carrying amount;
39p167(a) (b) the methods and significant assumptions applied in estimating
fair values of financial assets that are carried at fair value;
39p167(b) (c) whether gains and losses arising from changes in the fair value
of available-for-sale financial assets that are measured at fair
value subsequent to initial recognition are:
(i) included in net profit or loss for the period; or
(ii) recognised directly in equity until the financial asset is
disposed of;
39p167(c) (d) for each of the four categories of financial assets (e.g. financial
asset or liability held for trading, held to maturity investments,
loans and receivables originated by the enterprise, available-
for-sale financial assets), whether ‘regular way’ purchases are
accounted at :
(i) trade date; or
(ii) settlement date.
1p99(j) 13 Leases.
2p34(a) 14 Inventories, including the cost formula used (eg FIFO or weighted
1p99(l) average cost or as an alternative treatment LIFO. If LIFO is used as
the cost formula, then please see A5.11.5).
1p99(n) 15 Provisions.
1p99(o) 16 Employee benefit costs – including policy for recognising actuarial
19p120(a) gains and losses (IAS 19 p92-93).
19p147(b) 17 Equity compensation plans.
1p99(m) 18 Taxes, including deferred taxes.
18p35(a) 19 Revenue recognition.
1p99(a)
18p35(a) 20 Method adopted to determine the stage of completion of
transactions involving the rendering of services.
1p99(g) 21 Construction contracts.
20p39(a) 22 Government grants:
1p99(t) (a) accounting policy;
(b) method of presentation in financial statements.
22p91(b) 23 Negative goodwill – period over which negative goodwill is
recognised in income.
1p99(r) 24 Definition of cash and cash equivalents.
7p46

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1p99(q) 25 Segment reporting (required by listed companies):
(a) definition of business and geographical segments; and
(b) the basis for allocation of costs between segments.
27p32(c) 26 If the parent’s separate financial statements are presented – method
28p27(b) of accounting for subsidiaries and associates in the parent’s separate
financial statements.
1p101 27 Any other significant accounting policies, particularly each policy
not covered by a specific IAS but selected and applied in accordance
with IAS 1 p20.
(3) Changes in accounting policy
8p46 1 Where a change in accounting policy is made on the adoption of
an IAS, provide the disclosures in accordance with the specific
transitional provisions of that Standard.
DV,8p48 2 Where a new IAS has been published but has not yet been adopted
by the enterprise, disclose the nature of the future change in
accounting policies and an estimate of the effect of the change on
the entity’s net profit or loss and financial position.
8p49 3 If the benchmark treatment is adopted, adjust the opening balance
8p53 of retained earnings; comparative information should be restated
unless it is impracticable to do so. Disclose:
(a) the reasons for the change;
(b) the amount of the adjustment for the current period and for
each period presented;
(c) the amount of the adjustment relating to periods prior to those
included in the comparative information; and
(d) the fact that comparative information has been restated or that
this is impracticable.
8p54 4 If the allowed alternative treatment is adopted, the comparative
8p57 information should be presented as reported in the financial
statements of the prior period. Additional pro forma comparative
information should be presented unless it is impracticable to
do so. Disclose:
(a) the reasons for the change;
(b) the amount of the adjustment recognised in net profit or loss for
the current period;
(c) the amount of the adjustment included in each period for
which pro forma information is presented and the amount of
the adjustment relating to periods prior to those included in the
financial statements; and
(d) if it is impracticable to present pro forma information, disclose
that fact.

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Y-NA-NM REF
A3 Income statement (and related notes)
(1) General disclosures
For an example income statement please refer to the
Appendix to IAS 1.
1 As a minimum, the face of the income statement should include
the following line items:
1p75 (a) revenue;
1p77 (b) analysis of costs (see section A3 (2) 4 and 5 of this checklist).
1p75 (c) operating profit or loss;
1p75 (d) finance costs;
1p75 (e) share of profits and losses of associates and joint ventures
28p28 accounted for using the equity method;
1p75 (f) profit or loss from ordinary activities before tax;
12p77 (g) tax expense;
8p10(a) (h) profit or loss from ordinary activities after tax;
8p10(b) (i) extraordinary items (if any);
27p26 (j) minority interest; and
1p75 (k) net profit or loss for the period.

See section C3 for disclosures relating to a discontinuing operation.


Additional line items, headings and sub-totals should be presented
1p75 on the face of the income statement when required by an IAS, or
when such presentation is necessary to present fairly the enterprise’s
financial performance.
8p7 All items of income and expense recognised in a period should be
included in net profit or loss for the period unless an IAS requires or
permits otherwise.
1p34 Items of income and expense should be offset when, and only
when an IAS requires or permits it, or when gains, losses and
related expenses arising from the same or similar transactions and
events are not material, in which case they should be aggregated in
accordance with IAS 1 p29.
1p85 2 Either on the face of the income statement or (more usually) in the
notes, disclose the amount of dividends per share, declared or
proposed.
32p30 Dividends on those preferred shares which are classified as a
financial liability should be reported as an expense in arriving at
profit before tax, and not as an appropriation of net profit.
8p30 3 The nature and amount of a change in an accounting estimate that
has a material effect in the current period or which is expected to
have a material effect in subsequent periods (see examples in IAS 8
p23). If it is impracticable to quantify the amount, disclose this fact.

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34p26 4 This item is applicable only when the reporting entity publishes an
interim financial report prepared in accordance with IAS 34. If an
estimate of an amount reported in an interim period is changed
significantly during the final interim period of the financial year but
a separate financial report is not published for that final interim
period, the nature and amount of that change in estimate should be
disclosed in a note to the annual financial statements for that
financial year.
(2) Individual items
18p35(b) 1 The amount of each significant category of revenue recognised
during the period including revenue arising from:
(a) the sale of goods;
(b) the rendering of services;
(c) interest;
(d) royalties; and
(e) dividends.
18p35(c) 2 The amount of revenue arising for exchanges of goods or services
included in each significant category of revenue.
1p77 3 Either on the face of the income statement (encouraged by IAS 1 p78)
or in the notes to the income statement, analyse the items below
revenue using a classification based on either the nature of expense
or their function within the enterprise (see the following paragraphs
4, 5 and 6 of this checklist and the Appendix to IAS 1).
1p80 4 If analysed by nature of expense, this comprises:
(a) other operating income;
(b) changes in inventories of finished goods and work in progress;
2p37(b) (c) raw materials and consumables used;
(d) staff costs;
(e) depreciation and amortisation expense; and
(f) other operating expenses.
1p82 5 If analysed by function of expense, this comprises:
2p37(a) (a) cost of sales;
(b) gross profit;
(c) other operating income;
(d) distribution costs;
(e) administrative expenses; and
(f) other operating expenses.
1p83 6 Enterprises classifying expenses by function should disclose
additional information on the nature of expenses, including
the following:
(a) depreciation and amortisation expense; and
(b) staff costs.
8p16 7 The nature and amount of other items resulting from ordinary
activities that are of such size, nature or incidence that their
disclosure is relevant to explain the enterprise’s performance.
Examples are shown in IAS 8 p18, including restructuring costs and
disposals of PPE. The items listed in IAS 8 p18 do not qualify as
extraordinary items.

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8 Employee benefits:
19p46 (a) the expense for defined contribution plans;
19p120(f) (b) defined benefit plans – the total expense for each of the
following, and the line item(s) of the income statement in which
they are included:
– current service cost;
– interest cost;
– expected return on plan assets;
– expected return on any reimbursement recognised as an asset;
– actuarial gains and losses;
– past service cost; and
– the effect of any curtailment or settlement.
19p120(g) (c) defined benefit plans
– the actual return on plan assets; and
– the actual return on any reimbursement recognised as an asset.
19p131 (d) expense resulting from other long-term employee benefits,
if significant;
19p142 (e) expense resulting from termination benefits, if significant; and
19p147(c) (f) the amounts recognised as an expense for equity
compensation plans.
38p115 9 Research and development expenditure recognised as an
expense during the period.
21p42(a) 10 The amount of foreign exchange differences included in the net
profit or loss for the period.
36p113(a,b)11 For each class of assets (including financial assets, eg trade
39p170(f) receivables and investments under IAS 39) the following amounts
recognised during the period, and the line item(s) of the income
statement in which they are included:
(a) impairment losses; and
(b) reversals of impairment losses.
12 The following amounts recognised during the period and the line
item(s) of the income statement in which they are included:
22p88(d,e) (a) amortisation of goodwill;
38p107(d,e) (b) amortisation of other intangible assets (by each class); and
22p91(c,d) (c) negative goodwill recognised as income.
40p66(d) 13 Investment property:
(a) rental income;
(b) direct operating expenses including repairs and maintenance
arising from investment property that generated rental income
during the period; and
(c) direct operating expenses including repairs and maintenance
arising from investment property that did not generate rental
income during the period.

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39p170(c) 14 The following items resulting from financial assets and
financial liabilities :
(a) income;
(b) expense;
(c) gains; and
(d) losses.
39p170(c) 15 The disclosures in paragraph 14 above should specifically include
the following :
(a) total interest income (on a historical basis);
(b) total interest expense (on a historical basis);
(c) total gains and losses from derecognition of available-for sale
financial assets;
(d) total gains and losses from fair value adjustments of recognised
assets and liabilities; and
(e) interest income that has been accrued on impaired loans and
that has not yet been received in cash.
(3) Tax
12p79 1 The major components of tax expense (income). IAS 12 p80 gives
examples of the major components of tax expense (income).
12p81(c) 2 An explanation of the relationship between tax expense (income)
and accounting profit in either of the following forms:
(a) numerical reconciliation between tax expense (income) and
product of accounting profit multiplied by the applicable tax
rate(s), disclosing also the basis on which the applicable tax
rate(s) is (are) computed (see IAS 12 p85); or
(b) a numerical reconciliation between the average effective tax
rate and the applicable tax rate, disclosing also the basis on
which the applicable tax rate is computed (see IAS 12 p85).
12p81(d) 3 An explanation of changes in the applicable tax rate(s) compared to
the previous period.
(4) Extraordinary items
8p11, 1 The nature and amount of each extraordinary item disclosed
8p12-14 separately. Virtually all income/expenses are included in the
determination of net profit/loss from ordinary activities; only very
rare events are classified as extraordinary items (eg expropriation of
assets; losses arising from a natural disaster).
28p28 2 Share of extraordinary items (if any) of associates.
12p81(b) 3 The tax expense (income) relating to extraordinary items
recognised during the period.
(5) Statement of recognised gains and losses
1p7(c), 1 An enterprise should present as a primary financial
1p89 statement either:
(a) a statement of recognised gains and losses; or
(b) a statement of changes in equity.
Refer to the examples of these statements in the
Appendix to IAS 1.

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If the statement of recognised gains and losses is prepared, refer
to paragraphs 2-3 of this section.
If the statement of changes in equity is prepared, paragraphs 2-3
of this section are not relevant. Refer instead to section A4(1) and
(2) of this checklist.
Section A4 (3) to (10) of this checklist apply whichever statement
is prepared.
1p86(a-c) 2 Statement of recognised gains and losses comprising:
(a) net profit or loss for the period;
(b) each item of income and expense, gain or loss which, as
required by other Standards, is recognised directly in equity,
and the total of these items (eg revaluation of certain non-
current assets, fair value adjustments on certain hedging
instruments, currency translation differences); and
(c) the cumulative effect of changes in accounting policy and the
correction of fundamental errors dealt with under the
benchmark treatment in IAS 8.
1p86(d-f) 3 If a statement of recognised gains and losses is prepared, the
following items should be disclosed in the notes:
1p86(d) (a) capital transactions with owners:
(i) issue of share capital; and
SIC16p6 (ii) purchase of own shares;
SIC 17p6 (b) transaction costs (relating to issue of share capital) deducted
from equity;
1p86(d) (c) distributions to owners (eg dividends);
1p86(f) (d) a reconciliation between the carrying amount at the beginning
and end of the period of the following items (separately
disclosing each movement):
(i) each class of equity capital;
(ii) share premium;
SIC16p6 (iii) own shares (treasury shares);
(iv) each reserve in shareholders’ equity, including the following:
16p64(f) – revaluation reserve for property, plant and equipment;
38p113(b) – revaluation reserve for intangible assets;
39p170(a) – revaluation reserve for available-for-sale financial assets
(where the entity chooses to recognise fair value changes
in equity);
39p169(c) – hedging reserve for cash flow hedges;
21p42(b) – foreign exchange translation reserve; and
1p86(e) (v) accumulated profit or loss.
32p23 (e) the equity conversion element of a convertible debt.

A4 Statement of changes in shareholders’ equity


1p7(c), 1 An enterprise should present as a primary financial statement either:
1p89 (i) a statement of recognised gains and losses; or
1, App1 (ii) a statement of changes in shareholders’ equity.
Refer to the examples of these statements in the Appendix to IAS 1.
If it wishes, the reporting entity may present both statements.

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If the statement of recognised gains and losses is prepared,
paragraph 2 of this section is not relevant for the enterprise – refer
instead to section A3(5) of this checklist.
If the statement of changes in shareholders’ equity is prepared,
refer to paragraph 2 of this section.
Paragraphs 3 to 10 of this section apply whichever statement
is prepared.
1p86 2 The statement of changes in shareholders’ equity should disclose
the following:
1p86(a) (a) net profit or loss for the period;
1p86(b) (b) each item of income and expense, gain or loss which, as
required by other Standards, is recognised directly in equity,
and the total of these items (eg revaluation of certain non-
current assets, currency translation differences);
1p86(d) (c) capital transactions with owners:
(i) issue of share capital; and
SIC16p6 (ii) purchase of own shares;
SIC17p6 (d) transaction costs, (relating to issue of share capital), deducted
from shareholders’ equity;
1p86(d) (e) distributions to owners (eg dividends);
1p86(f) (f) a reconciliation between the carrying amount at the beginning
and end of the period of the following items (separately
disclosing each movement):
(i) each class of equity capital;
(ii) share premium;
SIC16p6 (iii) own shares (treasury shares);
(iv) each reserve in shareholders’ equity including the following:
16p64(f) – revaluation reserve for property, plant and equipment;
38p113(b) – revaluation reserve for intangible assets;
39p170(a) – revaluation reserve for available-for-sale financial assets
(where the entity chooses to recognise fair value changes
in equity);
39p169(c) – hedging reserve for cash flow hedges;
21p42(b) – foreign exchange translation reserve; and
1p86(e) (v) accumulated profit or loss;
32p23 (g) the equity conversion element of a convertible debt; and
1p86(c) (h) the cumulative effect of changes in accounting policy and the
correction of fundamental errors dealt with under the benchmark
treatment in IAS 8.
1p74(b) 3 A description of the nature and purpose of each reserve within
16p64(f) shareholders’ equity, including restrictions on the distribution of
38p113(b) the revaluation reserves (although not specified by IAS 1, this
usually includes details of any restrictions on distributions for each
reserve in shareholders’ equity).
12p81(a) 4 The aggregate current and deferred tax relating to items charged or
credited to equity. It is useful to disclose the analysis by category of
temporary differences.

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36p113(c) 5 For each class of assets, the amount of impairment losses and the
36p113(d) amount of reversals of impairment losses, recognised directly in
equity during the period (where the entity uses the allowed
alternative treatment in IAS 16 and IAS 38).
1p74(a) 6 Disclose the following for each class of share capital either on the
face of the balance sheet or in the notes (this information is usually
disclosed in the notes):
(a) the number of shares authorised;
(b) the number of shares issued and fully paid, and issued but not
fully paid;
(c) par value per share, or that the shares have no par value;
(d) reconciliation of number of shares outstanding at beginning
and end of the year;
(e) the rights, preferences and restrictions attaching to each class of
share capital including restrictions on the distribution of
dividends and the repayment of capital;
(f) shares in the enterprise held by the enterprise itself or by
subsidiaries or associates of the enterprise; and
(g) shares reserved for issuance under options and sales contracts,
including the terms and amounts.
32p18 7 Certain types of preferred shares must be disclosed in liabilities (not
in equity) – see IAS 32 p22.
1p74 8 An enterprise without share capital, such as a partnership, should
disclose information equivalent to that required above, showing
movements during the period in each category of equity interest
and the rights, preferences and restrictions attaching to each
category of equity interest.
1p74(c) 9 The amount of dividends that were proposed or declared after the
10p11 balance sheet date but before the financial statements were
authorised for issue.
1p74(d) 10 The amount of any cumulative preference dividends not
recognised.

A5 Balance sheet (and related notes)


(1) General disclosures
For an example balance sheet please refer to the Appendix to IAS 1.
1p66 1 As a minimum, the face of the balance sheet should include the
following line items:
(a) property, plant and equipment;
(b) intangible assets;
(c) financial assets, e.g. investments (excluding amounts shown
under (d), (f) and (g));
28p28 (d) investments accounted for using the equity method;
(e) inventories;
12p69 (f) tax assets:
i) current tax assets;
ii) deferred tax assets (presented as non-current assets);

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(g) trade and other receivables;
(h) cash and cash equivalents;
(i) trade and other payables;
12p69 (j) tax liabilities:
(i) current tax liabilities;
(ii) deferred tax liabilities (presented as non-current liabilities);
(k) provisions;
(l) non-current interest-bearing liabilities, e.g. borrowings;
(m) minority interest (presented separately from liabilities and
equity); and
1p73(e) (n) issued capital and reserves (eg ordinary shares, share premium,
treasury shares, fair value reserves, translation differences and
retained earnings).
1p67 Additional line items, headings and sub-totals should be presented
on the face of the balance sheet when an IAS requires it, or when
such presentation is necessary to present fairly the enterprise’s
financial position.
See section C3 for disclosures about discontinuing operations.
1p68 IAS 1 does not prescribe the order or format for presenting balance
sheet items.
1p33 Assets and liabilities should not be offset except when offsetting is
required or permitted by another IAS.
1p72 2 Either on the face of the balance sheet or in the notes to the balance
sheet, disclose further sub-classifications of the line items
presented, classified in a manner appropriate to the enterprise’s
operations. Each item should be sub-classified, when appropriate,
by its nature. Refer to IAS 1 p73 for examples.
1p53 3 Is the current/non-current distinction of assets and liabilities made
on the face of the balance sheet?
(i) yes – ensure that classification rules in IAS 1 p57-65 are applied;
(ii) no – ensure that assets and liabilities are presented broadly in
order of their liquidity.
1p54 4 Whichever method of presentation in 3 is applied, for each asset
and liability item that combines current and non-current amounts,
disclose the non-current portion (the amount expected to be
recovered or settled after more than 12 months).
(2) Property, plant and equipment
17p24 The disclosure requirements of IAS 16 Property, Plant and Equipment
(PPE) apply both to owned assets and also to the amounts of leased
assets held under finance leases in the lessee’s accounts.
16p60(d) 1 For each class of PPE, the gross carrying amount and the
accumulated depreciation (including accumulated impairment
losses) at the beginning and end of the period.
16p60(e) 2 A reconciliation of the carrying amount in respect of each class of
PPE at the beginning and end of the period showing:
(a) additions;
(b) disposals;

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(c) acquisitions through business combinations;
(d) increases or decreases during the period resulting from
revaluations and from impairment losses recognised or
reversed directly in equity under IAS 36;
(e) impairment losses recognised during the period;
(f) impairment losses reversed during the period;
(g) depreciation;
(h) exchange differences from the retranslation of PPE of
foreign entities;
(i) transfers between class of PPE (e.g. from PPE under
construction to land and buildings); and
(j) other movements.
Note – Comparative information for these items is not required.
16p64 3 For PPE stated at revalued amounts, disclose:
(a) basis used to revalue assets (e.g. open market value);
(b) effective date of revaluation;
(c) whether an independent valuer was involved;
(d) nature of any indices used to determine replacement cost; and
(e) the carrying amount of each class of PPE that would have been
included in the financial statements had the assets been carried
at cost less depreciation.
Refer also to the disclosures on revaluation surplus in sections A3(5)
and A4(2).
16p61(a) 4 The existence and amounts of PPE whose title is restricted.
16p61(a) 5 The amounts of property, plant and equipment pledged as security
for liabilities.
16p61(c) 6 The amount of expenditures on account of PPE in the course of
construction.
7 Borrowing costs:
23p29(b) (a) the amount of borrowing costs capitalised during the period; and
23p29(c) (b) the capitalisation rate used to determine the amount of
borrowing costs eligible for capitalisation.
17p23(a) 8 For each class of asset that are the subject of finance leases, the net
carrying amount.
21p42(c) 9 The amount of foreign exchange differences arising during the
period which are included in the carrying amount of an asset in
accordance with the allowed alternative treatment in IAS 21 p21.
DV, 10 Voluntary disclosures:
16p66 (a) the carrying amount of temporarily idle PPE;
(b) the gross carrying amount of any fully depreciated PPE that is
still in use;
(c) the carrying amount of PPE retired from active use and held for
disposal;
(d) when PPE is carried at cost less depreciation, the fair value of
PPE if this is materially different from the carrying amount.

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(3) Investment property
40p67,69(d) 1 A reconciliation of the carrying amount of investment property at
the beginning and end of the period showing the following:
(a) additions;
(b) additions resulting from acquisitions through business
combinations;
(c) capitalised subsequent expenditure;
(d) disposals;
(e) depreciation (where the cost model in IAS 40 is used);
(f) impairment losses and impairment losses reversed (where the
cost model in IAS 40 is used);
(g) net gains or losses from fair value adjustments (where the fair
value model in IAS 40 is used);
(h) the net exchange differences arising on the translation of the
financial statements of a foreign entity;
(i) transfers to and from:
(i) inventories; and
(ii) owner-occupied property; and
(j) other movements.
40p67 Notes:
(1) Comparative information is not required for the reconciliation.
(2) Where the fair value model in IAS 40 is used, the reconciliation
should disclose amounts relating to investment property carried
under the benchmark treatment of IAS 16 (because of the lack
of a reliable fair value) separately from other investment property.
40p66(c) 2 The fair value of investment property (as measured or disclosed in the
financial statements) that was subject to a valuation at the balance
sheet date by an independent professionally qualified valuer.
40p66(c) 3 If there has been no valuation by an independent professionally
qualified valuer, disclose that fact.
40p68 4 If the fair value model is used, but certain investment properties are
carried under the benchmark treatment of IAS 16, because of the
lack of a reliable fair value:
40p68(a) (a) description of the investment property;
40p68(b) (b) explanation of why fair value cannot be reliably measured;
40p68(c) (c) the range of estimates within which fair value is highly likely
to lie; and
40p68(d) (d) if the enterprise disposes of investment property whose fair
value previously could not be measured reliably, disclose:
(i) that fact;
(ii) the carrying amount of that investment property at the time
of sale; and
(iii) the gain or loss on disposal.
40p69(e) 5 If the cost model is used, disclose the fair value of investment property.
40p66(e) 6 The existence and amounts of restrictions on the realisability of
investment property or the remittance of income and proceeds of
disposal.

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40p66(f) 7 Contractual obligations:
(a) to purchase, construct or develop investment property; and
(b) for repairs, maintenance or enhancements of investment property.
8 If the cost model is used, disclose :
40p69(a) (a) depreciation methods used;
40p69(b) (b) the useful lives or the depreciation rates used; and
40p69(c) (c) the gross carrying amount and the accumulated depreciation
(i) at the beginning; and
(ii) at the end of the period.
(4) Intangible assets excluding goodwill
38p107(c) 1 A reconciliation of the carrying amount in respect of each class of
38p107(e) intangible assets, distinguishing between:
(i) internally generated intangible assets; and
(ii) acquired intangible assets (including those which have
been granted or received in an exchange).
The reconciliation should show the following:
(a) gross carrying amount and accumulated amortisation
(including accumulated impairment losses) at the beginning of
the period;
(b) additions (indicating separately those from internal
development and through business combinations);
(c) retirements and disposals;
(d) increases or decreases resulting from revaluations (in accordance
with IAS 38 p64,76,77) and from impairment losses recognised
or reversed directly in equity (in accordance with IAS 36 p59);
(e) impairment losses recognised during the period;
(f) impairment losses reversed during the period;
(g) amortisation;
(f) exchange differences from the translation of intangible assets
of a foreign entity;
(g) other movements; and
(h) gross carrying amount and accumulated amortisation (including
accumulated impairment losses) at the end of the period.
38p107 Note – Comparative information for these items is not required.
38p108 Note – IAS 38 p108 gives examples of separate classes of
intangible assets.
38p111(b) 2 The description, carrying amount and remaining amortisation
period of any individual intangible asset that is material to the
financial statements of the enterprise as a whole.
38p113(a) 3 For intangible assets carried at revalued amounts, disclose for each
class of intangible assets:
(a) the effective date of the revaluation;
(b) the carrying amount of revalued intangible assets; and
(c) the carrying amount that would have been included in the
financial statements had the assets been carried at cost
less depreciation.

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38p111(d) 4 Disclose:
(a) the existence and amounts of intangible assets whose title is
restricted; and
(b) the amounts of intangible assets pledged as security for liabilities.
38p111(c) 5 For intangible assets acquired by way of a government grant and
initially recognised at fair value (see IAS 38 p33):
(a) the fair value initially recognised for these assets;
(b) their carrying amount; and
(c) whether they are carried at cost less depreciation or at
revalued amounts.
38p121 6 In the first year when IAS 38 is adopted, disclose any transitional
provisions applied (see IAS 38 p118-120).
DV, 7 Voluntary disclosures – describe briefly:
38p117 (a) fully amortised intangible assets that are still in use; and
(b) significant intangible assets controlled by the enterprise but not
recognised as assets because they did not meet the recognition
criteria in IAS 38 or they were acquired or generated before
IAS 38 became effective.
(5) Goodwill and negative goodwill
22p88(e) 1 A reconciliation of the carrying amount of goodwill showing:
(a) gross carrying amount and accumulated amortisation (including
accumulated impairment losses) at the beginning of the period;
(b) additions;
(c) adjustments resulting from subsequent identification or changes
in value of identifiable assets and liabilities (see IAS 22 p71);
(d) disposals;
(e) amortisation;
(f) impairment losses recognised during the period;
(g) impairment losses reversed during the period;
(h) other changes during the period (e.g. exchange differences from
the translation of financial statements of foreign entities); and
(i) gross carrying amount and accumulated amortisation (including
accumulated impairment losses) at the end of the period.
22p88(e) Note – Comparative information for these items is not required.
22p101 2 In the first year when IAS 22 (revised) is adopted, disclose any
transitional provisions applied (see IAS 22 p99-100).
22p64 3 Negative goodwill should be presented as a deduction from the
assets, in the same balance sheet classification as goodwill.
22p91(a) 4 To the extent that negative goodwill is treated in accordance with
IAS 22 p61, disclose:
(a) the description;
(b) the amount; and
(c) the timing of the expected future losses and expenses.
22p91(d) 5 A reconciliation of the carrying amount of negative goodwill, showing:
(a) the gross carrying amount and the accumulated amount of
negative goodwill already recognised in income at the
beginning of the period;

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(b) additions;
(c) disposals of businesses to which it relates;
(d) adjustments resulting from subsequent identification or changes
in value of assets and liabilities (in accordance with IAS 22 p71);
(e) negative goodwill recognised in income during the period
(showing separately the portion recognised in income in
accordance with IAS 22 p61);
(f) other movements (e.g. exchange differences from the
translation of financial statement of foreign entities); and
(g) the gross carrying amount and the accumulated amount of
negative goodwill already recognised in income at the end of
the period.
22p91(d) Note – Comparative information for these items is not required.
(6) Impairment of assets
36p117 1 If an impairment loss for an individual asset (or cash-generating unit)
recognised or reversed during the period is material to the financial
statements of the reporting enterprise as a whole, disclose:
(a) the events and circumstances that led to the recognition or
reversal of the impairment loss;
(b) the amount of the impairment loss recognised or reversed;
(c) for an individual asset:
(i) the nature of the asset; and
(ii) the segment to which the asset belongs (based on
primary format);
(d) for a cash-generating unit:
(i) a description of the cash generating unit (such as whether it
is a product line, a plant, a business operation, a
geographical area, a reportable segment or other);
(ii) the amount of the impairment loss recognised or reversed:
– by class of assets; and
– by reportable segment based on the enterprise’s
primary format; and
(iii) if the aggregation of assets for identifying the cash-generating
unit has changed since the previous estimate of the cash-
generating unit's recoverable amount, the enterprise should
describe the current and former way of aggregating assets
and the reasons for changing the way the cash-generating
unit is identified;
(e) whether the recoverable amount is its net selling price or its
value in use;
(f) if recoverable amount is net selling price, the basis used to
determine net selling price (eg whether it was determined by
reference to an active market or in some other way); and
(g) if recoverable amount is value in use, the discount rates used in
current estimate and previous estimate (if any) of value in use.
Note – the disclosures in this section relating to segments are
applicable to those enterprises who apply IAS 14 – see section B1
of this checklist.

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36p118 2 If the total impairment losses recognised or the total impairment
losses reversed during the period are material in aggregate to the
financial statements of the reporting enterprise as a whole, disclose
for those impairment losses (reversals) for which no information is
disclosed under IAS 36 p117 (paragraph 1 above):
(a) the main classes of assets affected by impairment losses
(or reversals of impairment losses); and
(b) the main events and circumstances that led to the recognition
(reversal) of these impairment losses.
(7) Associates
28p27(a) 1 A listing and description of significant associates, showing the
proportion of ownership interest, and if different, the proportion of
voting power held.
28p28 2 Associates accounted for using the equity method: disclosed as a
separate item under long-term assets.
28p17 3 Investments in associates include goodwill (less accumulated
amortisation) on the acquisition of the investment in the associate.
4 Although not required by IAS 28, it is useful to disclose the
following for significant associates:
(a) reconciliation of movements in the investment in associates
during the period; and
(b) summarised financial data.
SIC20p10 5 If an investor discontinues recognition of its share of losses of an
associate, disclose the amounts of its share of losses of the
associate during:
(i) the period; and
(ii) cumulatively.
(8) Joint ventures
31p47 1 A listing and description of interests in significant joint ventures and
the proportion of ownership interest held in jointly controlled entities.
31p47 2 The aggregate amount of each of the following items related to the
entity’s interests in jointly controlled entities.
(a) current assets;
(b) long-term assets;
(c) current liabilities;
(d) long-term liabilities;
(e) income (eg total of revenue and other operating income); and
(f) expenses (eg total of operating expenses and net interest expense).
31p45 3 Disclose separately from other contingent liabilities:
(a) any contingent liabilities that the venturer has incurred in relation
to its interest in joint ventures and its share in each of the
contingent liabilities which have been incurred jointly with
other venturers;
(b) its share of the contingent liabilities of the joint ventures
themselves for which it is contingently liable; and
(c) those contingent liabilities that arise because the venturer is
contingently liable for the liabilities of the other venturers of a
joint venture.

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31p46 4 Disclose separately from other commitments the aggregate of:
(a) any capital commitments of the venturer in relation to its interests
in joint ventures and its share in the capital commitments that
have been incurred jointly with other venturers; and
(b) its share of the capital commitments of the joint ventures
themselves.
31p48 5 A venturer which does not issue consolidated financial statements,
because it does not have subsidiaries, should disclose the
information required by IAS 31 p45-47.
(9) Subsidiaries
27p32 1 Disclose in consolidated financial statements:
(a),(b) (a) a listing of significant subsidiaries, including for each:
i-iii – name;
– country of incorporation or residence; and
– proportion of ownership interest and, if different, proportion
of voting power held;
(b) the reasons for not consolidating a subsidiary;
(c) the nature of the relationship between the parent and a subsidiary
of which the parent does not own, directly or indirectly through
subsidiaries, more than one half of the voting power held; and
(d) the name of an enterprise in which more than one half of the
voting power is owned, directly or indirectly through
subsidiaries, but which, because of the absence of control, is
not a subsidiary.
21p44 2 Where there is a change in the classification of a significant foreign
operation (eg from integral foreign operation to foreign entity – see
IAS 21 p39, 40):
(a) the nature of the change in classification;
(b) the reason for the change;
(c) the impact of the change in classification on shareholders’
equity; and
(d) the impact on net profit or loss for each prior period presented
had the change in classification occurred at the beginning of
the earliest period presented.
(10) Investments – financial assets
Under IAS 39 financial assets are classified into:
(a) held for trading securities;
(b) held to maturity securities;
(c) loans and receivables originated by the enterprise; and
(d) available-for-sale securities
1 Although not required by IAS 39, it is useful to disclose movements
in the period where investments are significant.
39p170(a) 2 If a gain or loss from remeasuring available-for-sale financial assets
to fair value (other than assets relating to hedges) has been
recognised directly in equity, through the statement of changes in
equity, disclose:
(a) the amount that was so recognised in equity during the current
period; and

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(b) the amount that was removed from equity and reported in net
profit or loss for the period.
39p170(b) 3 If the presumption that fair value can be reliably measured for all
financial assets that are available-for-sale or held for trading has
been overcome and the enterprise is, therefore, measuring any
such financial assets at amortised cost, provide disclosure for:
(a) that fact together with a description of the financial assets;
(b) their carrying amount;
(c) an explanation of why fair value cannot be reliably measured;
and
(d) the range of estimates within which fair value is highly
likely to lie.
39p170(b) 4 If financial assets whose fair value previously could not be
measured reliably are sold, provide disclosure for:
(a) that fact;
(b) the carrying amount of such financial assets at the time of sale;
and
(c) the amount of gain or loss recognised.
39p170(e) 5 If the enterprise has reclassified a financial asset as one required to
be reported at amortised cost rather than at fair value, provide
disclosure for the reason for the reclassification.
39p170(f) 6 The nature and amount of any impairment loss or reversal of an
impairment loss recognised for each class of financial asset.
39p170(g) 7 A borrower provides disclosures for :
(a) the carrying amount of financial assets pledged as collateral for
liabilities; and
(b) significant terms and conditions relating to pledged assets.
39p170(h) 8 A lender provides disclosure for :
(a) the fair value of collateral that :
(i) it has accepted; and
(ii) it is permitted to sell or repledge;
(b) the fair value of collateral that it has sold or pledged; and
(c) significant terms and conditions associated with its use of
collateral.
(11) Inventory
2p34(b) 1 Inventories, sub-classified by main categories appropriate to the
enterprise.
1p73(c) For example:
– raw materials;
– work in progress; and
– finished goods.
2p34(c) 2 The carrying amount of inventories carried at net realisable value.
Note: Disclosure of the provision for obsolete or slow moving
inventories does not alter the need to disclose inventories at net
realisable value.

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2p34(d,e) 3 The amount of, and circumstances or events leading to, reversal of
write-downs of inventories (arising from an increase in net
realisable value) recognised as income:
2p34(f) 4 The carrying amount of inventories pledged as security for
liabilities.
2p36 5 If LIFO is used: the difference between the carrying value of
inventories stated using LIFO and either:
(a) the lower of net realisable value and cost on FIFO or weighted
average cost basis; or
(b) the lower of net realisable value and current cost.
1p54 6 Where any of the above items combine current and non-current
amounts, disclose the amount of the non-current portion, which is
expected to be recovered or settled after more than 12 months
(see IAS 1 p59).
(12) Trade and other receivables
1p72 1 Receivables should be disclosed in a manner appropriate to the
DV,1p73(b) enterprise’s operation, with the following specific disclosures:
(a) trade receivables;
(b) receivables from subsidiaries (in standalone accounts);
(c) receivables from related parties (see section A5 (20)3);
(d) other receivables; and
(e) prepayments.
39p170(f) The following amounts recognised during the period:
(a) impairment losses (eg allowances for bad and doubtful debts);
and
(b) reversal of impairment losses.
1p54 Where any of the above items combine current and non-current
amounts, disclose the amount of the non-current portion, which is
expected to be recovered or settled after more than 12 months
(see IAS 1 p59).
(13) Tax
12p69 1 Tax assets and tax liabilities should be presented separately from
other assets and liabilities in the balance sheet.
12p69 2 Deferred tax assets/liabilities should be presented separately from
current tax assets/liabilities.
12p70 3 If a distinction between current and non-current assets and liabilities
is made on the face of the balance sheet, deferred tax assets
(liabilities) should be classified as non-current assets (liabilities).
1p54 4 Where any of the above items combine current and non-current
amounts, disclose the amount of the non-current portion, which
is expected to be recovered or settled after more than 12 months
(see IAS 1 p62).

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12p71 For the offsetting rules of current tax assets and liabilities please
12p74 refer to IAS 12 p71 and for the offsetting rules of deferred tax assets
and liabilities please refer to IAS 12 p74.
12p81(e) 5 In respect of temporary differences:
(a) the amount (and expiry date, if any) of deductible temporary
differences, unused tax losses, and unused tax credits for which
no deferred tax asset is recognised in the balance sheet;
12p81(f) (b) the aggregate amount of temporary differences associated with
investments in subsidiaries, branches and associates and
interests in joint ventures, for which deferred tax liabilities have
not been recognised (see IAS 12 p39);
12p81(g) (c) in respect of each type of temporary difference, and in respect
of each type of unused tax losses and unused tax credits:
(i) the amount of the deferred tax assets and liabilities
recognised in the balance sheet for each period presented;
and
(ii) the amount of the deferred tax income or expense
recognised in the income statement, if this is not apparent
from the changes in the amounts recognised in the balance
sheet (for example, where there are deferred tax items
charged or credited to equity during the period).
Note: Although not required by IAS 12, it is a helpful ‘proof’ to
display the movements during the period in each category of
temporary differences in the deferred tax account.
12p82 6 The amount of a deferred tax asset and the nature of the evidence
supporting its recognition, when:
(a) the utilisation of the deferred tax asset is dependent on future
taxable profits in excess of the profits arising from the reversal
of existing taxable temporary differences; and
(b) the enterprise has suffered a loss in either the current or
preceding period in the tax jurisdiction to which the deferred
tax asset relates.
12p81(a) 7 The aggregate current and deferred tax relating to items charged or
credited to equity. It is useful to disclose the analysis by category of
temporary differences.
12p81(i) 8 The amount of income tax consequences of dividends that were
proposed or declared after the balance sheet date but before the
financial statements were authorised for issue.
12p82(A) 9 In the circumstances described in IAS 12.52A, an enterprise
should disclose:
(a) the nature of the potential income tax consequences that would
result from the payment of dividends; and
(b) the amounts of the potential income tax consequences
practically determinable and whether there are any potential
income tax consequences not practically determinable.

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(14) Trade and other payables
1p72 1 Payables should be disclosed in a manner appropriate to the
enterprise’s operations with the following specific disclosures:
(a) trade payables;
(b) payables to subsidiaries (in standalone accounts);
(c) payables to related parties (see section A5(20)3);
(d) other payables;
(e) accruals; and
(f) deferred income.
1p54 2 Where any of the above items combine current and non-current
amounts, disclose the amount of the non-current portion, which
is expected to be recovered or settled after more than 12 months
(see IAS 1 p61).
(15) Provisions
37p84 1 For each class of provision:
(a) the carrying amount at the beginning of the period;
(b) exchange differences from the translation of financial
statements of foreign entities;
(c) provisions acquired through business combinations;
(d) additional provisions made in the period and increases to
existing provisions;
(e) amounts used (ie incurred and charged against the provision);
(f) amounts reversed unused;
(g) the increase during the period in the discounted amount arising
from the passage of time and the effect of any change in the
discount rate; and
(h) the carrying amount at the end of the period.
Note – Comparative information for these items is not required.
1p54 2 Where any of the above items combine current and non-current
amounts, disclose the amount of the non-current portion, which is
expected to be recovered or settled after more than 12 months
(see IAS 1 p61).
37p85 3 For each class of provision:
(a) a brief description of the nature of the obligation and of the
expected timing of any resulting outflows of economic benefits;
(b) an indication of the uncertainties about the amount or timing of
those outflows (where necessary to provide adequate
information, an enterprise should disclose the major
assumptions made concerning future events, as addressed in
IAS 37 p48); and
(c) the amount of any expected reimbursement, stating the amount
of any asset that has been recognised for that expected
reimbursement.

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37p92 4 In extremely rare cases, disclosure of some or all of the information
required by IAS 37 paragraphs 84-85 (items 1 and 3 above) can be
expected to seriously prejudice the position of the enterprise in a
dispute with other parties in respect of the matter for which the
provision is made. In such a situation, the information need not be
disclosed but the following should be disclosed:
(a) the general nature of the dispute;
(b) the fact that the information has not been disclosed; and
(c) the reason why that information has not been disclosed.
34p26 5 This item is applicable only when the reporting entity publishes on
interim financial report prepared in accordance with IAS 34. If an
estimate of an amount reported in an interim period, for example a
provision, is changed significantly during the final interim period of
the financial year but a separate financial report is not published for
that final interim period, the nature and amount of that change in
estimate should be disclosed in a note to the annual financial
statements for that financial year.
(16) Post employment benefits – defined benefit plans
19p120(a) 1 Accounting policy for recognising actuarial gains and losses (see
IAS 19 p92-93).
19p120(b) 2 A general description of the type of a defined benefit plan.
19p120(c) 3 A reconciliation of the assets and liabilities recognised in the
balance sheet, showing at least the following:
(a) the present value at the balance sheet date of defined benefit
obligations that are wholly unfunded;
(b) the present value (before deducting the fair value of plan assets)
at the balance sheet date of defined benefit obligations that are
wholly or partly funded;
(c) the fair value of any plan assets at the balance sheet date;
(d) the net actuarial gains or losses not yet recognised in the
balance sheet (IAS 19 p92);
(e) the past service cost not yet recognised in the balance sheet
(IAS 19 p96);
(f) any amount not recognised as an asset, because of the limit in
IAS 19 p58(b); and
(g) the amounts recognised in the balance sheet.
– the fair value at the balance sheet date of any right to
reimbursement recognised as an asset;
– a brief description of the link between the reimbursement and
the related obligation.
Note – For the offsetting rules of an asset relating to one plan against
a liability relating to another plan, please refer to IAS 19 p116.
1p54 4 Where the amounts recognised in the balance sheet combine current
and non-current amounts, disclose the amount of the non-current
portion (where this can be determined – see IAS 19 p118), which is
expected to be recovered or settled after more than 12 months.

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19p120(d) 5 The amounts included in the fair value of plan assets for:
(a) each category of the reporting enterprise’s own financial
instruments; and
(b) any property occupied by, or other assets used by, the reporting
enterprise.
19p120(e) 6 A reconciliation showing the movements during the period in the
net liability (or asset) recognised in the balance sheet. For example,
the following information would normally be disclosed:
(a) the carrying amount at the beginning of the period;
(b) exchange differences from the translation of financial
statements of foreign entities;
(c) liabilities acquired through business combinations;
(d) expense recognised in the income statement;
(e) contributions paid; and
(f) the carrying amount at the end of the period.
19p120(h) 7 The principal actuarial assumptions used as at the balance sheet
date, including:
(a) the discount rates;
(b) the expected rates of return on any plan assets for the periods
presented in the financial statements;
(c) the expected rates of salary increases (and of changes in an
index or other variable specified in the formal or constructive
terms of a plan as the basis for future benefit increases);
(d) medical cost trend rates; and
(e) any other material actuarial assumptions used.
Disclose each actuarial assumption in absolute terms (for example
as an absolute percentage) and not just as a margin between
different percentages or other variables.
19p29(b) 8 For multi-employer plans that are treated as defined benefit plans,
disclose the information required by IAS 19 p120.
19p30(b,c) 9 For multi-employer plans that are treated as defined contribution
plans;
(a) the fact that the plan is a defined benefit plan;
(b) the reason why sufficient information is not available to enable the
enterprise to account for the plan as a defined benefit plan; and
(c) to the extent that a surplus or deficit in the plan may affect the
amount of future contributions disclose in addition:
(i) any available information about that surplus or deficit;
(ii) the basis used to determine that surplus or deficit; and
(iii) the implications, if any, for the enterprise.
19p155(b) 10 On the first adoption of IAS 19 (revised), an enterprise should
(ii) determine its transitional liability in accordance with IAS 19 p154.
If the transitional liability is more than the amount that would have
been recognised at the same date under the enterprise’s previous
accounting policy, and the enterprise chooses to recognise this
difference on a straight line basis over up to 5 years (alternatively it
could be recognised immediately), the enterprise should disclose at
each balance sheet date:
(a) the amount of the difference that remains unrecognised; and
(b) the amount recognised in the current period.

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(17) Lease liabilities
Leases are financial instruments and therefore all the disclosure
requirements of IAS 32 Financial Instruments apply also to leases;
please refer to section A8 of this checklist.
Note: This section of the checklist applies to Lessees. For Lessors,
please refer to section C2.
17p23 1 Lessees – Finance leases:
(a) a reconciliation between the total minimum lease payments at
the balance sheet date, and their present value;
(b) the total of minimum lease payments at the balance sheet date,
and their present value, for each of the following periods:
(i) not later than one year;
(ii) later than one year and not later than five years; and
(iii) later than five years;
(c) the amount of contingent rents recognised in income for
the period;
(d) the total of future minimum sublease payments expected to be
received under non-cancellable subleases at the balance sheet
date; and
(e) a general description of the lessee’s significant leasing
arrangements. This would include, but is not limited to:
(i) the basis on which contingent rent payments are
determined;
(ii) the existence and terms of renewal or purchase options and
escalation clauses; and
(iii) restrictions imposed by lease arrangements, such as those
concerning dividends, additional debt, and further leasing.
17p24 2 The disclosure requirements of IAS 16 apply to amounts of leased
assets under finance leases that are accounted for by the lessee as
acquisitions of assets.
17p27 3 Lessees – Operating leases:
(a) the total of future minimum lease payments under non-
cancellable operating leases for each of the following periods:
(i) not later than one year;
(ii) later than one year and not later than five years; and
(iii) later than five years;
(b) the total of future minimum sublease payments to be received
under non-cancellable subleases at the balance sheet date;
(c) lease and sublease payments recognised in the income
statement for the period, with separate amounts for minimum
lease payments, contingent rents and sublease payments; and
(d) a general description of the lessee’s significant leasing
arrangements. This would include, but is not limited to:
(i) the basis on which contingent rent payments are
determined;
(ii) the existence and terms of renewal or purchase options and
escalation clauses; and
(iii) restrictions imposed by lease arrangements, such as those
concerning dividends, additional debt, and further leasing.

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17p56 4 The disclosure requirements about leases set out in paragraphs
1 and 3 above also apply to sale and leaseback transactions. Any
unique or unusual provisions of the agreements or terms of the sale
and leaseback transactions should be separately disclosed.
(18) Borrowings and other liabilities
Borrowings are financial instruments and therefore all the
disclosure requirements of IAS 32 Financial Instruments apply also
to borrowings; please refer to section A8 of this checklist.
1p63 1 Where long-term interest-bearing liabilities due to be settled within
12 months of the balance sheet date have been excluded from
current liabilities and instead classified as non-current in
accordance with IAS 1 p63, the amount involved should be
disclosed, together with information supporting such presentation.
32p23 2 Liabilities, which contain an option to convert to shares (e.g.
convertible debt), must be analysed between the liability element
and the equity conversion element. The equity conversion element
must be shown under equity and the liability element must be
shown under liabilities.
(19) Government grants
20p39(b,c) 1 Disclose:
(a) nature and extent of government grants recognised;
(b) indication of other forms of government assistance from which
the enterprise has directly benefited; and
(c) unfulfilled conditions and other contingencies attaching to
government assistance that have been recognised.
(20) Related party transactions
24p3 1 The definition of related parties includes the following entities and
individuals:
(a) controlling shareholders (e.g. parent companies, individuals,
trusts etc.);
(b) subsidiaries and fellow subsidiaries;
(c) associates;
(d) joint ventures;
(e) individuals owning, directly or indirectly, an interest in the voting
power that gives them significant influence over the enterprise,
ie normally more than 20% of shares (plus close members of the
family of such individuals);
(f) key management personnel – persons who have authority for
planning, directing and controlling of the enterprise (plus close
members of the family of such individuals); and
(g) enterprises owned by the individuals described in (e) and (f).
24p4 2 No disclosure of related party transactions is required:
(a) in parent financial statements when they are made available or
published with the consolidated financial statements;
(b) in financial statements of a wholly-owned subsidiary, if its
parent is incorporated in the same country and provides
consolidated financial statements in that country;

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(c) in financial statements of state-controlled enterprises, but only
of transactions with other state-controlled enterprises; and
(d) in consolidated financial statements, but only in respect of intra-
group transactions (ie between the parent and subsidiaries).
24p22, 3 Where there have been transactions between related parties, disclose:
24p23 (a) nature of related party relationships;
(b) types of transactions (eg goods or services sold/purchased,
management service, directors’ remuneration and emoluments,
loans, guarantees etc.); and
(c) elements of transactions necessary for an understanding of the
financial statements, including:
– volume of the transactions during the period (the amounts or
alternatively appropriate proportions);
– outstanding items – ie balances at year end (the amounts or
alternatively appropriate proportions);
– pricing policies (e.g. whether the arm’s length basis was used
or, if not arm’s length basis, what was the basis; interest rate(s)
on loans).
24p19 4 IAS 24 p19 contains examples of situations which may require
disclosure.
24p24 5 Where necessary for an understanding of the effects of related party
transactions on the financial statements, disclose separately, rather
than in aggregate, items of a similar nature.
1p72 6 Disclose separately (i) amounts payable to and (ii) amounts
receivable from the following:
(a) the parent enterprise;
(b) fellow subsidiaries;
(c) associates;
(d) joint ventures; and
(e) other related parties.
7 Where required by IAS 24, disclose information about:
19p47 (a) contributions to defined contribution plans for key
management personnel;
19p124(a) (b) related party transactions with post-employment benefit plans;
19p124(b) (c) post-employment benefits for key management personnel;
19p143 (d) termination benefits for key management personnel;
19p131 (d) other short- and long-term employee benefits for key
management personnel;
19p151(a) (e) equity compensation benefits to key management personnel;
19p151(b) (f) equity compensation benefits in the form of instruments issued
by the enterprise’s parent; and
19p151(c) (g) related party transactions with equity compensation plans.
SIC16p7 8 In accordance with IAS 24 p22, provide disclosures where the
enterprise or its subsidiaries re-acquires its own shares from parties
able to control or exercise significant influence over the enterprise.
(21) Equity compensation benefits
19p147(a) 1 The nature and terms (including any vesting provisions) of equity
compensation plans.
(Refer to 19 p144 for the definition of equity compensation benefits).

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19p147(d) 2 The following details of the enterprise’s own equity financial
instruments which are held by equity compensation plans (and, in
the case of share options, by employees) at the beginning and end
of the period:
(a) the number;
(b) the terms;
(c) dividend rights;
(d) voting rights;
(e) conversion rights;
(f) exercise dates;
(g) exercise prices;
(h) expiry dates; and
(i) the extent to which employees’ entitlements to those
instruments are vested at the beginning and end of the period.
19p147(e) 3 The following details of equity financial instruments issued by the
enterprise to equity compensation plans or to employees (or of the
enterprise’s own equity financial instruments distributed by equity
compensation plans to employees) during the period:
(a) the number;
(b) the terms;
(c) dividend rights;
(d) voting rights;
(e) conversion rights;
(f) exercise dates;
(g) exercise prices;
(h) expiry dates; and
(i) the fair value of any consideration received from the equity
compensation plans or the employees.
19p147(f) 4 The following details of share options exercised under equity
compensation plans during the period:
(a) the number;
(b) the exercise date; and
(c) the exercise price.
19p147(g) 5 The number of share options held by equity compensation plans,
or held by employees pursuant to such plans, that lapsed during
the period.
19p147(h) 6 Loans or guarantees granted by the reporting enterprise to, or on
behalf of, equity compensation plans:
(a) the amount; and
(b) the principal terms.
19p148 7 The fair value:
(a) at the beginning and end of the period, of the enterprise’s own
equity financial instruments (other than share options) held by
equity compensation plans; and
(b) at the date of issue, of the enterprise’s own equity financial
instruments (other than share options) issued by the enterprise
to equity compensation plans or to employees, or by equity
compensation plans to employees, during the period.
If it is not practicable to determine the fair value of the equity financial
instruments (other than share options), that fact should be disclosed.

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(22) Commitments
1 The amount of commitments for the acquisition of:
16p61(d) (a) property, plant and equipment; and
38p111(e) (b) intangible assets.
Refer also to the commitments in respect of lease agreements in
section A5(17) and commitments in respect of joint ventures in
section A5(8).
(23) Contingencies
37p86 1 Disclose for each class of contingent liability, unless the possibility
of any outflow in settlement is remote:
(a) a brief description of the nature of the contingent liability;
(b) where practicable, disclose also:
37p86(a) (i) an estimate of its financial effect, measured under
IAS 37 p36-52;
37p86(b) (ii) an indication of the uncertainties about the amount or
timing of any outflow;
37p86(c) (iii) the possibility of any reimbursement; and
37p91 (c) where any of this information is not disclosed as not practicable,
disclose that fact.
37p88 2 Where a provision and a contingent liability arise from the same set
of circumstances, the link between the provision and the
contingent liability should be shown.
37p89 3 Disclose for contingent assets, where an inflow of economic
benefits is probable:
(a) brief description of the nature of the contingent asset;
(b) where practicable, disclose also an estimate of their financial
effect, measured under IAS 37 p36-52; and
37p91 (c) where this information is not disclosed because it is not
practicable to do so, disclose that fact.
37p92 4 In extremely rare cases, disclosure of some or all of the information
required by IAS 37 paragraphs 86-89 on contingencies (items 1 to 3
above) can be expected to seriously prejudice the position of the
enterprise in a dispute with other parties on the subject matter of the
contingent liability or contingent asset. In such cases the information
need not be disclosed; but the following must be disclosed:
(a) the general nature of the contingencies;
(b) the fact that the required information has not been disclosed; and
(c) the reason why the required information has not been disclosed.
5 Disclose contingent liabilities arising from:
19p125 (a) post-employment benefit obligations; and
19p141 (b) termination benefits (eg due to the uncertainty about the number
of employees who will accept an offer of termination benefits)
Refer also to the contingencies in respect of lease agreements in
section A5(17) and contingencies in respect of joint ventures in
section A5(8).

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(24) Events after the balance sheet date
1p74(c) 1 The amount of dividends that were proposed or declared after the
10p12 balance sheet date but before the financial statements were
authorised for issue.
10p20 2 Where events occurring after the balance sheet date do not affect
the condition of assets or liabilities at the balance sheet date but are
of such importance that non-disclosure would affect the ability of
the users of the financial statements to make proper evaluations
and decisions, disclose:
(a) the nature of the event; and
(b) an estimate of the financial effect, or a statement that such an
estimate cannot be made.
DV, 3 If there was a significant change in exchange rates after the balance
21p46 sheet date, disclose the effect on foreign currency monetary items
or on the financial statements of a foreign operation.
22p96 4 Business combinations – if a business combinations has been
effected after the balance sheet date and before the financial
statements are issued, all disclosures required should be prepared
(see section A7 of this checklist). If it is impracticable to disclose
any of this information, disclose this fact.
35p29 5 Discontinuing operations – if an initial disclosure event occurs after
the balance sheet date but before the financial statements are
authorised for issue, all disclosures required by IAS 35 p27 should
be prepared (see section C3 of this checklist).
33p43 6 Earnings per share:
(a) if there is a bonus issue/capitalisation/share split/reverse split
occurring after the balance sheet date, the EPS calculations should
incorporate this event (see section B2(4) of this checklist); and
DV, 33p45 (b) other post-balance sheet transactions in shares are encouraged
to be disclosed (see section B2(5) of this checklist).
12p81(i) 7 The amount of income tax consequences of dividends that were
proposed or declared after the balance sheet date but before the
financial statements were authorised for issue.
12p82(a) 8 In the circumstances described in IAS 12.52A, an enterprise
should disclose:
(a) the nature of the potential income tax consequences that would
result from the payment of dividends; and
(b) the amounts of the potential income tax consequences
practically determinable and whether there are any potential
income tax consequences not practically determinable.

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A6 Cash flow statement
(1) General presentation
7,app1 Note – For example cash flow statements (direct & indirect method)
please refer to Appendix 1 to IAS 7.
7p10 1 Cash flows classified by operating, investing and financing activities.
7p18 2 Cash flows from operating activities using either:
(a) the direct method, disclosing major classes of gross cash
receipts or payments; or
(b) the indirect method, adjusting net profit and loss for the effects of:
(i) any transactions of a non-cash nature;
(ii) any deferrals or accruals of past or future operating cash
receipts or payments; and
(iii) items of income or expense associated with investing or
financing cash flows.
7p21 3 Cash flows from investing and financing activities – separately
major classes of gross cash receipts and gross cash payments
(except as noted in paragraph 4 below). For example, proceeds
from new borrowings have to be displayed separately from
repayments of borrowings.
7p22 4 Cash flows arising from the following operating, investing or
financing activities may be reported on a net basis (refer to IAS 7 p23):
(a) cash receipts and payments on behalf of customers when the
cash flows reflect the activities of the customer rather than
those of the enterprise; and
(b) cash receipts and payments for items in which the turnover is
quick, the amounts are large and the maturities are short.
7p43 5 Non-cash transactions – exclude from the cash flow statement
those investing and financing transactions that do not require the
use of cash and cash equivalents. Disclose non-cash transactions
separately in the note to the cash flow statement.
7p44 Note: Examples of non-cash transactions are:
(a) acquisition of assets either by assuming directly related
liabilities or by means of a finance lease;
(b) acquisition of an enterprise by means of an equity issue; and
(c) conversion of debt to equity.
(2) Individual items
1 Cash flows arising from taxes on income:
7p35 (a) disclose taxes paid;
7p36 (b) classify taxes paid as cash flows from operating activities unless
specifically identified with financing and investing activities; and
(c) when tax cash flows are allocated over more than one class of
activity, disclose the total amount of taxes paid.

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7p31 2 Cash flows from interest and dividends:
(a) interest received;
(b) interest paid;
(c) dividends received; and
(d) dividends paid.
Each of the above items should be classified in a consistent manner
from period to period as either operating, investing or financing
activities.
7p33 Interest paid is normally classified as either operating or financing activities.
7p33 Interest and dividends received are normally classified as either
operating or investing activities.
7p34 Dividends paid are normally classified as either financing or
operating activities.
7p39 3 Aggregate cash flows arising from
(a) acquisitions; and
(b) disposals of subsidiaries or other business units, are presented
separately and classified as investing activities.
Refer also to the disclosure requirements for acquisitions and
disposals in section A7 of this checklist.
7p29 4 Cash flows associated with extraordinary items (if any), classified as
arising from operating, investing or financing activities as appropriate.
7p45 5 Cash and cash equivalents:
(a) the components; and
(b) reconciliation of amounts in cash flow statement with cash and
cash equivalents in balance sheet.
7p48 6 The amount of significant cash and cash equivalent balances held
by the enterprise that are not available for use by the group,
together with a commentary by management.
35p27(g) 7 Discontinuing operations – the amounts of net cash flows from:
(a) operating activities;
(b) investing activities; and
(c) financing activities,
DV,7p50 8 Voluntary disclosures: additional information relevant in
understanding the financial position and liquidity of an enterprise
together with a commentary by management:
(a) the amount of undrawn borrowing facilities available for future
operating activities and to settle capital commitments,
indicating any restrictions as to the use of these facilities;
(b) the aggregate amounts of the cash flows from each of operating,
investing and financing activities related to interests in joint
ventures reported using proportionate consolidation;
(c) the aggregate amount of cash flows that represent increases in
operating capacity separately from those cash flows that are
required to maintain operating capacity; and
(d) the amount of cash flows arising from the operating, investing
and financing activities of each reported industry and
geographical segment.

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A7 Business combinations and disposals
(1) General disclosures
22p86 1 For all business combinations during the period:
(a) the names and descriptions of the combining enterprises;
(b) the method of accounting for the combination;
(c) the effective date of the combination for accounting purposes; and
(d) any operations resulting from the business combination which
the enterprise has decided to dispose of.
22p96 All disclosures required by IAS 22 should also be made for business
combinations after the balance sheet date and before the date on
which the financial statements are issued; if it is impracticable to
disclose any of this information, disclose this fact.
(2) Acquisitions
22p87 1 For each acquisition during the period:
(a) the percentage of voting shares acquired;
(b) the cost of acquisition; and
(c) the description of the purchase consideration paid or
contingently payable.
Although not mentioned in IAS 22, it is suggested that disclosure is
also made in the subsequent period when the contingency is
resolved and the cost of acquisition is adjusted.
7p40 2 In respect of acquisitions of subsidiaries or other business units,
disclose in aggregate:
(a) the total purchase consideration;
(b) the portion of the total purchase consideration discharged by
means of cash and cash equivalents;
(c) the amount of cash and cash equivalents in the subsidiaries or
business unit acquired; and
(d) the amount of the assets and liabilities other than cash or cash
equivalents in the subsidiary or business unit acquired,
summarised by each major category.
27p32(b) 3 Disclose the effect of the acquisition of subsidiaries on:
(a) the financial position at the reporting date (ie the assets and
liabilities, of the acquired subsidiary, at the reporting entity’s
balance sheet date); and
(b) the results for the reporting period (ie the results of the acquired
subsidiary for the period from the date of acquisition to the
reporting entity’s balance sheet date).
22p92 4 Provisions recognised under IAS 22 p31 for terminating or reducing
the activities of an acquiree should be treated as a separate class of
provisions for purposes of disclosures under IAS 37. Disclose the
following:
(a) the various requirements under IAS 37 (see section A4(15)); and
(b) the aggregate carrying amount of such provisions for each
acquisition.

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22p93 5 Provisional fair values:
(a) In an acquisition, if the fair values of the assets and liabilities or
the purchase consideration can only be determined on a
provisional basis at the end of the period in which the acquisition
took place, this should be stated and reasons given; and
SIC22p8 (b) When there are subsequent adjustments to such provisional fair
values, disclose and explain :
(i) those adjustments in the financial statements of the period
concerned; and
(ii) the effect of those adjustments on the financial statements of
the current period and on previously issued comparative
financial statements presented.
(3) Disposals
7p40 1 In respect of disposals of subsidiaries or other business units,
disclose in aggregate:
(a) the total disposal consideration;
(b) the portion of the total disposal consideration discharged by
means of cash and cash equivalents;
(c) the amount of cash and cash equivalents in the subsidiaries or
business unit disposed of; and
(d) the amount of the assets and liabilities other than cash or cash
equivalents in the subsidiary or business unit disposed of,
summarised by each major category.
27p32(b) 2 Disclose the effect of the disposal of subsidiaries on:
(a) the financial position at the reporting date (this will be the
assets and liabilities of the subsidiary at the date of disposal);
(b) the results for the reporting period (ie the results of the
subsidiary from the start of the current period to the date of
disposal); and
(c) the corresponding amounts for the preceding period (ie the
results of the subsidiary for the whole of the previous period
and its assets and liabilities at the comparative balance sheet
date of the reporting entity).
(4) Unitings of interest (mergers)
22p94 1 For each uniting of interest during the period:
(a) description and number of shares issued, together with the
percentage of each enterprise’s voting shares exchanged to
effect the uniting of interest;
(b) amounts of assets and liabilities contributed by each enterprise;
and
(c) the following items of each enterprise prior to the date of the
combination that are included in the net profit or loss shown by
the combined enterprise’s financial statements:
(i) sales revenue;
(ii) other operating revenues;
(iii) extraordinary items (if any); and
(iv) the net profit or loss

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A8 Financial instruments
(1) General disclosures
The financial instruments disclosures set out in this section of this
checklist are required for each class of financial asset and financial
liability, both recognised (ie on the balance sheet) and unrecognised
(ie off the balance sheet). Accordingly these disclosures apply to items
such as cash, marketable securities, other investments, borrowings,
lease liabilities, trade and other receivables/payables, derivative
contracts as well as off balance sheet financial instruments.
1 Accounting policies including the following :
39p167(a) (a) the methods and significant assumptions applied in estimating
fair values of financial assets and financial liabilities that are
carried at fair value;
39p167(b) (b) whether gains and losses arising from changes in the fair value
of available-for-sale financial assets that are measured at fair
value subsequent to initial recognition are:
(i) included in net profit or loss for the period; or
(ii) recognised directly in equity until the financial asset is
disposed of; and
39p167(c) (c) for each of the categories of financial assets (eg financial asset
or liability held for trading, held to maturity investments, loans
and receivables originated by the enterprise, available-for-sale
financial assets), whether ‘regular way’ purchases are
accounted at:
(i) trade date; or
(ii) settlement date.
32p49, 2 Information on financial instruments should be disclosed when a
32p50, financial instrument held or issued by an enterprise, either individually
32p51 or as a class, creates a potentially significant exposure to the
enterprise’s financial risks. IAS 32 p49-51 provides details of
disclosures, which would include the face or contract amount,
maturity dates, early settlement and other options, rates of interest,
amount and timing of future cash receipts and payments, collateral
held or pledged etc.
32p47(a) (a) information about the extent and nature of the financial
instruments, including significant terms and conditions that may
affect the amount, timing and certainty of future cash flows;
DV, b) when the amounts relating to financial instruments on hand at
32p94(b) (the balance sheet date are not representative of amounts on
hand during the year, the following disclosures are suggested:
(i) the average aggregate carrying amount during the year of
recognised (ie on balance sheet) financial assets and
liabilities;
(ii) the average aggregate principal, stated, notional or other
similar amount during the year of unrecognised (ie off
balance sheet) financial assets and financial liabilities; and
(iii) the average aggregate fair value during the year of all
financial assets and financial liabilities;

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DV,21p47 (c) the reporting entity’s foreign currency risk management policy;
and
DV,32p50 (d) disclose the nature of a financial instrument where the balance
sheet presentation differs from the instrument’s legal form.
39p169(a) 3 The description of the financial risk management objectives and
policies, including the policy for hedging each major type of
forecasted transaction.
(2) Interest rate risk and credit risk
32p56 1 Information about the enterprise’s exposure to interest rate risk,
including:
(a) contractual repricing or maturity dates, whichever dates are
earlier; and
(b) effective interest rates, when applicable.
Notes:
32p60 (1) An enterprise might distinguish those monetary assets and
32p64(a-c) liabilities with a fixed interest rate and those with a floating
interest rate that is reset as the market rate changes. Suggested
approaches for presentation are given in IAS 32 p64(a,b) for fixed
interest rate instruments and in IAS 32 p64(c) for floating interest
rate instruments.
32p64(a) (2) IAS 32 p64(a) suggests the following groups for repricing or
maturity dates disclosures:
(i) within one year of the balance sheet date;
(ii) more than one year and less than five years; and
(iii) five years or more from the balance sheet date.
32p64(b) In the ‘within one year’ category financial institutions may provide
a further analysis according to the categories shown in IAS 32 p64(b).
32p64(d) (3) Suggested approaches for presentation of interest rate
32p65 information are given in IAS 32 p64(d). Further disclosures on
interest rates are suggested in IAS 32 p65.
32p62,63 (4) Supplementary disclosures are suggested for interest rate swaps
and securitisations
32p66 2 Information about the enterprise’s exposure to credit risk, including:
(a) the amount that best represents its maximum credit risk
exposure at the balance sheet date, without taking account of
the fair value of any collateral, in the event other parties fail to
perform their obligations under financial instruments; and
(b) significant concentrations of credit risk.
IAS 32 suggests supplementary disclosures about offset
arrangements (p70-72), securitisations (p73) and concentrations
of credit risk (p74-76).

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(3) Fair value hedges
39p169(b) 1 For designated fair value hedges, provide disclosure of:
(a) the description of the hedge;
(b) the description of the financial instruments designated as
hedging instruments for the hedge;
(c) fair values of the financial instruments designated as hedging
instruments at the balance sheet date;
(d) the nature of the risks being hedged;
(e) the periods in which the forecasted transactions are expected
to occur;
(f) the periods when they are expected to enter into the
determination of net profit or loss; and
(g) the description of any forecasted transaction for which hedge
accounting had previously been used but that is no longer
expected to occur.
(4) Cash flow hedges
39p169(b) 1 For cash flow hedges, provide disclosure of:
(a) the description of the hedge;
(b) the description of the financial instruments designated as
hedging instruments for the hedge;
(c) fair values of the financial instruments designated as hedging
instruments at the balance sheet date;
(d) the nature of the risks being hedged;
(e) the periods in which the forecasted transactions are expected
to occur;
(f) the periods when the forecasted transactions are expected to
enter into the determination of net profit or loss; and
(g) the description of any forecasted transaction for which hedge
accounting had previously been used but that is no longer
expected to occur.
DV, 2 The total amount of deferred or unrecognised gain or loss on
32p94(a) hedging instruments, other than those relating to hedges of
anticipated future transactions.
39p169(b) 3 For hedges of a net investment, provide disclosure of:
(a) the description of the hedge;
(b) the description of the financial instruments designated as
hedging instruments for the hedge;
(c) fair values of the financial instruments designated as hedging
instruments at the balance sheet date;
(d) the nature of the risks being hedged;
(e) the periods in which the forecasted transactions are expected
to occur;
(f) the periods when the forecasted transactions are expected to
enter into the determination of net profit or loss; and
(g) the description of any forecasted transaction for which hedge
accounting had previously been used but that is no longer
expected to occur.

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39p169(c) 4 If a gain or loss on derivative and non-derivative financial assets
and liabilities designated as hedging instruments in cash flow
hedges has been recognised directly in equity, through the
statement of changes in equity, provide disclosure of:
(a) the amount that was so recognised in equity during the
current period;
(b) the amount that was removed from equity and reported in net
profit or loss for the period; and
(c) the amount that was removed from equity and added to the
initial measurement of the acquisition cost or other carrying
amount of the asset or liability in a hedged forecasted
transaction during the current period.
(5) Available-for-sale financial assets
39p170(a) 1 If a gain or loss from remeasuring available-for-sale financial assets
to fair value (other than assets relating to hedges) has been
recognised directly in equity, through the statement of changes in
equity, provide disclosure for:
(a) the amount that was so recognised in equity during the current
period; and
(b) the amount that was removed from equity and reported in net
profit or loss for the period.
For other disclosures on available-for-sale financial assets refer
to A5 (10)
(6) Fair values
39p166 The requirements in 1 and 2 below do not apply to financial assets
and financial liabilities carried at fair value.
32p77 1 Information about the fair value of financial instruments. If it is not
practicable (within constraints of timeliness or cost) to determine
the fair value of a financial asset or financial liability with sufficient
reliability, that fact should be disclosed together with information
about the principal characteristics of the underlying financial
instrument that are pertinent to its fair value. (Further guidance on
the disclosures is given in IAS 32 p78-87).
32p88 2 When an enterprise carries one or more financial assets at an
amount in excess of their fair value, the enterprise should disclose:
(a) the carrying amount and the fair value of either the individual
assets or appropriate groupings of those individual assets; and
(b) the reasons for not reducing the carrying amount, including the
nature of the evidence that provides the basis for management’s
belief that the carrying amount will be recovered.
39p170(b) 3 If the presumption that fair value can be reliably measured for all
financial assets that are available-for-sale or held for trading has
been overcome and the enterprise is, therefore, measuring any
such financial assets at amortised cost, provide disclosure for:
(a) that fact together with a description of the financial assets;
(b) their carrying amount;
(c) an explanation of why fair value cannot be reliably measured; and
(d) the range of estimates within which fair value is highly likely
to lie.

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39p170(b) 4 If financial assets whose fair value previously could not be
measured reliably are sold, provide disclosure for:
(a) that fact;
(b) the carrying amount of such financial assets at the time of
sale; and
(c) the amount of gain or loss recognised.
39p170(e) 5 If the enterprise has reclassified a financial asset as one required to
be reported at amortised cost rather than at fair value, provide
disclosure for the reason for the reclassification.
39p170(g) 6 A borrower provides disclosures for:
(a) the carrying amount of financial assets pledged as collateral
for liabilities; and
(b) significant terms and conditions relating to pledged assets.
39p170(h) 7 A lender provides disclosure for:
(a) the fair value of collateral that:
(i) it has accepted; and
(ii) it is permitted to sell or repledge
(b) the fair value of collateral that it has sold or pledged; and
(c) significant terms and conditions associated with its use
of collateral.
(7) Profit and loss disclosure
36p113(a,b) 1 For each class of assets (including financial assets, eg trade
39p170(f) receivables and investments under IAS 39) the following amounts
recognised during the period, and the line item(s) of the income
statement in which they are included:
(a) impairment losses; and
(b) reversals of impairment losses.
39p170(c) 2 The following items resulting from financial assets and
financial liabilities:
(a) income;
(b) expense;
(c) gains; and
(d) losses.
39p170(c) 3 The disclosures in paragraph 2 above should specifically include
the following:
(a) total interest income (on a historical basis);
(b) total interest expense (on a historical basis);
(c) total gains and losses from derecognition of available-for-sale
financial assets;
(d) total gains and losses from fair value adjustments of recognised
available-for-sale financial assets; and
(e) interest income that has been accrued on impaired loans and
that has not yet been received in cash.

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(8) Securitisation
39p170(d) 1 If the enterprise has enteret into a securitisation or repurchase
agreement, provide disclosure for:
(a) such transactions occurring in the current financial reporting
period:
(i) the nature and extent of such transactions, including a
description of any collateral and quantitative information about
the key assumptions used in calculating the fair values of new
and retained earnings; and
(ii) whether the financial assets have been derecognised; and
(b) for remaining retained interests from transactions occurring in prior
financial reporting periods:
(i) the nature and extend of such transactions, including a
description of any collateral and quantitative information about
the key assumptions used in calculating the fair values of new
and retained earnings; and
(ii) whether the financial assets have been derecognised.

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48 PricewaterhouseCoopers
Section B

Additional disclosures required by listed companies

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B1 Segment reporting
(1) General disclosures
14p3 The segment information in IAS 14 must be given in the IAS
financial statements of all enterprises whose equity or debt
securities are publicly traded or that are in the process of issuing
14p4 equity or debt securities inpublic securities markets. Other
enterprises that prepare IAS financial statements are encouraged to
give segment disclosures; if they choose to give such information,
14p5 they must comply fully with IAS 14.
For the detailed rules on determining the segments to be reported
in the financial statements refer to IAS 14 paragraphs 9, 16, 26, 27,
34-37, 41-43, 44 and 47. Refer also to Appendix 2 to IAS 14 which
contains an illustration of the disclosures required for primary and
secondary segment reporting formats.
14p81 1 The types of products and services included in each reported
business segment.
14p81 2 The composition of each reported geographical segment.
14p81 If the information required by IAS 14 p81 is disclosed elsewhere in
the annual report, for example in the financial review, it need not
be repeated in the financial statements.
(2) Primary segment format
14p50 1 Disclose for each reportable segment in the enterprise’s primary
segment reporting format:
14p51 (a) segment revenue analysed as follows:
(i) sales to external customers; and
(ii) revenue from transactions with other segments;
14p52 (b) segment result;
14p55 (c) total segment assets;
14p56 (d) segment liabilities;

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14p57 (e) capital expenditure on property, plant and equipment and
on intangible assets;
(determined on an accruals basis, not on a cash basis. This
disclosure include both additions and acquisitions through
business combinations including goodwill).
14p58 (f) depreciation and amortisation expense; and
14p61 (g) total amount of significant non-cash expenses (other than
depreciation and amortisation) charged to the segment result,
eg segment charges.
14p63 If the enterprise provides the segment cash flow disclosures that
are encouraged by IAS 7 p50 (d), it need not also disclose
depreciation and amortisation expense or significant non-cash
expenses.
DV,14p59 2 The nature and amount of any items of segment revenue and
segment expense that are of such size, nature, or incidence that
their disclosure is relevant to explain the performance of each
reportable segment for the period (eg the items listed in IAS 8 p18).
14p64 3 The aggregate of the enterprise’s share of the net profit or loss of
associates, joint ventures (where equity method is used for joint
ventures), or other investments accounted for under the equity
method for each reportable segment. However, this requirement
only applies if substantially all of those associates’ operations are
within a single segment. (Note: under the definitions in IAS 14 p16
joint ventures accounted for under the equity method and associates
are not reportable segments – refer to Appendix 2 to IAS 14 for an
illustration of how segment amounts relating to such joint ventures
and associates are disclosed).
14p66 4 If the requirement in 3 above applies, the aggregate investments in
those associates, joint ventures or other investments should also be
disclosed for each reportable segment.
36p116 5 For each reportable primary segment:
(a) the amount of impairment losses recognised:
(i) in the income statement; and
(ii) directly in equity; and
(b) the amount of reversals of impairment losses recognised:
(i) in the income statement; and
(ii) directly in equity.
36p117 6 Additional disclosures by reportable segment where the
impairment loss recognised or reversed is material to the financial
statements taken as a whole:
36p117(c)(ii) (a) for an individual asset: the segment to which the asset belongs,
based on the primary format; and
36p117(d)(ii) (b) for a cash-generating unit: description (eg whether it is a
geographical area or reportable segment under IAS 14) and
impairment loss recognised or reversed, by reportable segment
based on the primary format.

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14p67 7 A reconciliation between the information disclosed for reportable
segments and the aggregated information in the consolidated or
enterprise financial statements. As a minimum, the following
specific reconciliation requirements apply:
(a) segment revenue reconciled to enterprise revenue from external
customers, including disclosure of ‘other’ revenue (ie revenue
from external customers not included in any segment’s revenue);
(b) segment result reconciled to a comparable measure of
enterprise operating profit or loss, as well as to enterprise net
profit or loss;
(c) segment assets reconciled to enterprise assets; and
(d) segment liabilities reconciled to enterprise liabilities.
8 Additional disclosures required, if geographical segments are
primary segment format (either (a) or (b) should be applied):
14p71 (a) if the primary segment format is geographical segments by
location of assets, and the location of customers differs from
the location of assets, disclose the revenue from sales to
external customers for each customer-based geographical
segment (ie ‘sales by destination’) whose revenue from sales to
external customers is 10% or more of total sales; or
14p72 (b) if the primary segment format is geographical segments by
location of customers, and the assets are located in different
geographical areas from the customers, disclose the following
segment information for each asset-based geographical segment
whose revenue from sales to external customers or segment
assets are 10% or more of the group totals:
(i) total of segment assets by geographical location of the
assets; and
(ii) capital expenditure on property, plant and equipment and on
intangible assets by location of the assets (determined on an
accruals basis, not a cash basis. This disclosure includes
both additions and acquisitions through business
combinations including goodwill).
(3) Secondary segment format
The disclosures in either paragraph 1 or 2 below (IAS 14 p69 or 70)
apply, depending on whether the secondary segment format is
geographical segments or business segments.
14p69 1 If the geographical segments are the secondary segment format:
disclose, for each geographical segment, item (a) where the
revenues are 10% or more of total consolidated sales, and items (b)
and (c) where the assets are 10% or more of total segment assets:
(a) segment revenue from external customers by geographical area
based on geographical location of customers (ie ‘sales by
destination’);
(b) total of segment assets by geographical location of assets; and
(c) capital expenditure on property, plant and equipment and on
intangible assets by geographical location of assets (determined
on an accruals basis not a cash basis. This disclosure includes
both additions and acquisitions through business combinations
including goodwill).

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14p70 2 If the business segments are the secondary segment format:
disclose the following segment information for each business
segment where the revenues are 10% or more of total consolidated
sales, or where the assets are 10% or more of total segment assets:
(a) segment revenue from external customers;
(b) total of segment assets; and
(c) capital expenditure on property, plant and equipment and on
intangible assets (determined on an accruals basis, not a cash
basis. This disclosure includes both additions and acquisitions
through business combinations including goodwill).
3 In relation to items 1 and 2 above, it is useful to reconcile the totals
to the consolidated amounts.
(4) Other disclosures
14p74 1 Under IAS 14 a business segment or geographical segment for
which information is reported to the board of directors and chief
executive officer is not a reportable segment if it earns a majority of
its revenue from sales to other segments (often referred to in practice
as a ‘vertically integrated segment’). However, if that segment’s
revenue from sales to external customers is 10% or more of total
enterprise’s external revenue, disclose that fact and the amounts of
that segment’s revenue from:
(a) sales to external customers; and
(b) internal sales to other segments.
14p75 2 Inter-segment transfers:
(a) the basis of pricing; and
(b) any changes in the basis of pricing inter-segment transfers.
(Note: inter-segment transfers should be measured for segment
reporting purposes on the basis that the enterprise actually used
to price those transfers).
14p76 3 Changes in accounting policies adopted for segment reporting that
have a material effect on segment information – restate prior period
segment information unless it is impracticable to do so, and:
(a) describe the nature of the change;
(b) the reason for the change;
(c) the fact that comparative information has been restated or that
it is impracticable to do so; and
(d) the financial effect of the change, if it is reasonably determinable.
14p76 4 Changes in identification of the segments – restate comparatives on
to the new basis unless this is impracticable. If restatement is
impracticable, disclose the current year segment data on both the
old and the new basis of segmentation.
14p84 5 When the enterprise adopts IAS 14 for the first time, the
comparative segment data should be restated unless it is not
practicable. If it is not practicable, disclose that fact.

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B2 Earnings per share
33p47 1 On the face of the income statement, basic and diluted earnings
per share for each class of ordinary shares that has a different right
to share in the net profit for the period.
33p48 IAS 33 p48 also requires disclosure of basic and diluted EPS when
the amounts are negative.
33p49 2 Separate disclosure of:
(a) the amounts used as the numerators in calculating basic and
diluted earnings per share, and a reconciliation of those amounts
to the net profit or loss for the period;
(b) the weighted average number of ordinary shares used as the
denominator in calculating basic and diluted earnings per
share; and
(c) reconciliation of the denominators in (b) to each other.
33p51 3 If, in addition to basic and diluted earnings per share, an enterprise
discloses supplementary per share amounts using a reported
component of net profit other than the net profit or loss for the
period attributable to ordinary shareholders, such amounts should
be calculated using the weighted average number of ordinary
shares determined in accordance with IAS 33.
If a component of net profit is used which is not reported as a line
item in the income statement, a reconciliation should be provided
between the component used and a line item which is reported in
the income statement. Basic and diluted supplementary per share
amounts should be disclosed with equal prominence.
33p43 4 If the number of ordinary or potential ordinary shares outstanding
increases as a result of capitalisation or bonus issue or share split or
decreases as a result of a reverse share split, the calculation of basic
and diluted earnings per share for all periods presented should be
adjusted retrospectively. If these changes occur after the balance
sheet date but before issue of the financial statements, the per share
calculations for those and any prior period financial statements
presented should be based on the new number of shares. When per
share calculations reflect such changes in the number of shares,
that fact should be disclosed.
DV 5 An enterprise is encouraged to disclose a description of ordinary
33p45 share transactions or potential ordinary share transactions, other
than capitalisation issues and share splits, which occurred after the
balance sheet date when they are of such importance that non-
disclosure would affect the ability of users of the financial
statements to make proper evaluations and decisions (See IAS 10).
Examples of such transactions include:
(a) the issue of shares for cash;
(b) the issue of shares when the proceeds are used to repay debt or
preference shares outstanding at the balance sheet date;
(c) the redemption of ordinary shares outstanding;
(d) the conversion or exercise of potential ordinary shares
outstanding at the balance sheet date, into ordinary shares;
(e) the issue of warrants, options or convertible securities; and
(f) the achievement of conditions that would result in the issue of
contingently issuable shares.

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Section C

Disclosures required by all entities but only in certain situations

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C1 Construction contracts
1p99(g) 1 Disclose in accounting policies:
11p39(b) (a) the methods used to determine the contract revenue recognised
in the period; and
11p39(c) (b) the methods used to determine the stage of completion of
contracts in progress.
11p39(a) 2 The amount of contract revenue recognised as revenue in the period.
11p40 3 For construction contracts in progress:
(a) the aggregate amount of costs incurred and recognised profits
(less recognised losses) to date;
(b) the amount of advances received; and
(c) the amount of retentions.
11p42 4 Present on the balance sheet:
(a) the gross amount due from customers for contract work as an
asset; and
(b) the gross amount due to customers for contract work as a liability.

C2 Accounting by a lessor
Leases are financial instruments and therefore the disclosure
requirements of IAS 32 Financial Instruments apply also to leases;
please refer to section A8 of this checklist.
17p39 1 Lessors – Finance leases:
(a) a reconciliation between the total gross investment in the lease
at the balance sheet date and the present value of minimum
lease payments receivable at the balance sheet date;
(b) the total gross investment in the lease and the present value of
minimum lease payments receivable at the balance sheet date,
for each of the following three periods:
(i) not later than one year;
(ii) later than one year and not later than five years; and
(iii) later than five years;

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(c) unearned finance income;
(d) the unguaranteed residual values accruing to the benefit of
the lessor;
(e) the accumulated allowance for uncollectible minimum lease
payments receivable;
(f) contingent rents recognised in income; and
(g) a general description of the lessor’s significant leasing
arrangements.
17p48 2 Lessors – Operating leases:
(a) for each class of asset:
(i) gross carrying amount;
(ii) accumulated depreciation;
(iii) accumulated impairment loss;
(iv) depreciation charge for the period;
(v) impairment losses recognised for the period; and
(vi) impairment losses reversed for the period;
(b) the future minimum lease payments under non-cancellable
operating leases, in total and for each of the following three
periods:
(i) not later than one year;
(ii) later than one year and not later than five years; and
(iii) later than five years;
(c) total contingent rents included in income; and
(d) a general description of the lessor’s significant leasing
arrangements.
17p56 3 The disclosure requirements set out in paragraphs 1 and 2 above
also apply to sale and leaseback transactions. Any unique or
unusual provisions of the agreements or terms of the sale and
leaseback transactions should be separately disclosed.

C3 Discontinuing operations
35p38 1 The disclosures in paragraphs 2 to 7 below should be presented
separately for each discontinuing operation (Refer to IAS 35 p2 for
the definition of a discontinuing operation).
35p27, 2 Initial disclosures – must be disclosed in the financial statements
35p35, beginning with the period in which the initial disclosure event occurs,
35p39 up to and including the period in which the discontinuance was
completed (either on the face of the financial statements or in the notes):
(a) a description of the discontinuing operation;
(b) the business or geographical segment(s) in which it is reported;
(c) the date and nature of the initial disclosure event;
(d) the date or period in which the discontinuance is expected to
be completed (if known or determinable);
(e) the carrying amounts, as of the balance sheet date, of the total
assets and the total liabilities to be disposed of;
12p81(h) (f) the amounts of revenue, expenses, pre-tax profit or loss from
the ordinary activities, and the income tax expense attributable
to the discontinuing operation during the current financial
reporting period (encouraged to be presented on the face of the
income statement); and

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(g) the amounts of net cash flows from operating, investing, and
financing activities of the discontinuing operation during the
current financial reporting period (encouraged to be presented
on the face of the cash flow statement).
35p16 Note – Initial disclosure event is the earlier of the following two
events: (a) entering into a binding sale agreement, or (b) approval
and announcement of a detailed plan for discontinuance.
35p29 3 If an initial disclosure event occurs after the balance sheet date but
before the financial statements are authorised for issue, all initial
disclosures required by IAS 35 p27 (paragraph 2 above) should be
prepared.
35p31 4 When an enterprise disposes of assets or settles liabilities
attributable to a discontinuing operation, or enters into binding
agreements for the sale or settlement of such assets and liabilities,
disclose:
(a) the amount of the pre-tax gain or loss recognised on the
35p39 disposal of assets/liabilities (must be disclosed on the face of
the income statement);
12p81(h) (b) income tax expense relating to this gain or loss; and
(c) the net selling price or range of prices (net of the expected
disposal costs) of those net assets for which the enterprise has
entered into one or more binding sale agreements, the expected
timing of receipt of those cash flows and the carrying amount of
those net assets.
35p41 Note – Income and expense relating to a discontinuing operation is
not an extraordinary item.
35p33 5 Updating disclosures – should be included in financial statements
for periods subsequent to the one in which the initial disclosure
event occurs (in addition to the disclosures above):
(a) a description of any significant changes in the amount or timing
of cash flows relating to the assets and liabilities to be disposed
of or settled; and
(b) the events causing these changes.
35p36 6 If an enterprise abandons or withdraws from a plan that was
previously reported as a discontinuing operation, that fact and its
effects should be disclosed.
35p45 7 Restate the comparative information for previous periods that is
presented in financial statements prepared after the initial
disclosure event (ie segregate continuing and discontinuing items
in a manner similar to that required by IAS 35 p27-43).

C4 Fundamental errors
8p34 1 If the benchmark treatment is adopted, adjust the opening balance
8p37 of retained earnings to correct a fundamental error that relates to
prior periods; comparative information should be restated if
practicable. Disclose:
(a) the nature of the fundamental error;
(b) the amount of the correction for the current period and for each
prior period presented;

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(c) the amount of the correction relating to periods prior to those
included in the comparative information; and
(d) the fact that comparative information has been restated or that
it is impracticable to do so.
8p38 2 If the allowed alternative treatment is adopted, comparative
8p40 information should be presented as proforma additional
information, unless it is impracticable to do so. Disclose:
(a) the nature of the fundamental error;
(b) the amount of the correction recognised in net profit or loss
for the current period;
(c) the amount of the correction included in each period for which
pro forma information is presented and the amount of the
correction relating to periods prior to those included in the
pro forma information; and
(d) if applicable, the fact that it is impracticable to present pro
forma information.

C5 Reporting in currency of
hyperinflationary economies
1p99(s) 1 Accounting policies.
29p39(a) 2 The fact that the financial statements and the corresponding figures for
previous periods have been restated for the changes in the general
purchasing power of the reporting currencies and, as a result, are
stated in terms of the measuring unit current at the balance sheet date.
29p39(b) 3 Whether the financial statements are based on a historical cost
approach or a current cost approach.
29p39(c) 4 The following information:
(a) the identity of the price index;
(b) the level of the price index at the balance sheet date; and
(c) the movement in the index during the current and the previous
reporting period. (Note: It is useful to disclose the 3 years
cumulative inflation at the balance sheet date for each of the
periods presented in the financial statements.)
29p9 5 The gain or loss on the net monetary position (defined by IAS 29 p27)
included in net income. (Note: This is usually disclosed as a separate
line above profit/loss before taxation on the income statement).

C6 Information reflecting the effects


of changing prices
Note – The Board of the IASC has decided that enterprises need not
disclose the information required by IAS 15 in order that their
financial statements conform with International Accounting
Standards. However, the Board encourages enterprises to present
such information and urges those that do so to disclose the items
required by IAS 15.

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When IAS 15 is followed, the disclosures apply to enterprises whose
levels of revenues, profit, assets or employment are significant in the
economic environment in which they operate. They should be
provided on a supplementary basis unless presented in the primary
financial statements. When both parent company and consolidated
financial statements are presented, the disclosures in IAS 15 need
only be presented on the basis of consolidated information.
DV, 1 Disclose in the financial statements or in the supplementary
15p21 information:
(a) amount of adjustment to, or adjusted amount of, depreciation
of property, plant and equipment;
(b) amount of adjustment to, or adjusted amount of, cost of sales;
(c) adjustments relating to monetary items, the effect of borrowing,
or equity interests, when such adjustments have been taken
into account in determining income under the accounting
method adopted; and
(d) overall effect on results of the adjustments described in (a), (b)
and, where appropriate, (c), as well as any other items
reflecting the effects of changing prices that are reported under
the accounting method adopted.
DV, 2 Where a current cost method has been adopted, the current cost of
15p22 property, plant and equipment and inventories.
DV, 3 The methods adopted to compute the information reflecting the
15p23 effects of changing prices, including the nature of any indices used.

C7 Uncertainties about going concern


1p23 1 Disclose material uncertainties relating to events or conditions,
which may cast significant doubt upon the enterprise’s ability to
continue as a going concern.
1p23 2 In the extremely rare situation where the going concern basis has
not been used, disclose that fact together with the reasons and the
basis actually used to prepare the financial statements.

C8 Departure from an International


Accounting Standard
1p13 1 In the extremely rare situations where departure from an
International Accounting Standard (or an Interpretation) is
necessary to achieve a fair presentation, disclose:
(a) that management has concluded that the financial statements
fairly present the enterprise’s financial position, financial
performance and cash flows;
(b) that it has complied in all material respects with applicable
International Accounting Standards except that it has departed
from a Standard in order to achieve a fair presentation;
(c) the Standard from which the enterprise has departed, the nature
of the departure, including the treatment that the Standard
would require, the reason why that treatment would be
misleading in the circumstances and the treatment adopted; and

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(d) the financial impact of the departure on the enterprise’s net
profit or loss, assets, liabilities, equity and cash flows for each
period presented.

C9 Change of year-end
1p49 1 In the rare situation when an enterprise changes its year-end and
financial statements are presented for a period longer or shorter
than one year, disclose:
(a) the reason for a period other than one year being used; and
(b) the fact that comparative amounts for the income statement,
changes in equity, cash flows and related notes are not
comparable.

C10 Intermediate parent company – consolidated


financial statements not presented
27p8 Note – Under IAS 27 p8, a parent which is itself a wholly owned
subsidiary, need not present consolidated financial statements. If
the parent is itself virtually wholly owned (eg 90% or more of the
voting power held by the ultimate parent), it need not present
consolidated financial statements, if it obtains the approval of the
owners of the minority interest.
27p8 1 Where a parent company that is a wholly or virtually wholly
owned subsidiary has not presented consolidated financial
statements, disclose:
(a) the reasons why consolidated financial statements have not
been produced;
(b) the bases on which subsidiaries are accounted for in its
separate financial statements; and
(c) the name and registered office of its parent company that
publishes consolidated financial statements.

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Section D

Additional disclosures required by banks and similar


financial institutions

Y-NA-NM REF
D1 Income statement
30p9,10 1 The income statement should group income and expenses by
nature and disclose the amounts of the principal types of income
and expenses, including:
(a) interest and similar income;
(b) interest expense and similar charges;
(c) dividend income;
(d) fee and commission income;
(e) fee and commission expense;
(f) gains less losses arising from dealing securities;
(g) gains less losses arising from investment securities;
(h) gains less losses arising from dealing in foreign currencies;
(i) other operating income;
(j) losses on loans and advances;
(k) general administrative expenses; and
(l) other operating expenses.
IAS 30 p17 suggests that management provides a commentary
about average interest rates, average interest-earning assets and
average interest-bearing liabilities for the period and any
government assistance provided to the bank.

D2 Balance sheet
30p18 1 The balance sheet should group assets and liabilities by nature and
list them in an order that reflects their relative liquidity.
30p19 2 The disclosures in the balance sheet or the notes to the financial
statements should include the following assets and liabilities:
(a) cash and balances with the central bank;
(b) treasury bills and other bills eligible for rediscounting with the
central bank;
(c) government and other securities held for dealing purposes;
(d) placements with, and loans and advances to, other banks;

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(e) other money market placements;
(f) loans and advances to customers;
(g) investment securities;
(h) deposits from other banks;
(i) other money market deposits;
(j) amounts owed to other depositors;
(k) certificates of deposits;
(l) promissory notes and other liabilities evidenced by paper; and
(m) other borrowed funds.
30p30 3 An analysis of assets and liabilities in relevant maturity groupings
based on the remaining period at the balance sheet date to the
contractual maturity date. (IAS 30 p33, 35 and 39 provide
suggested periods and other disclosures.)
30p24 4 Fair values of each class of financial assets and financial liabilities
as required by IAS 32 and IAS 39.
30p25 5 As a minimum, a bank discloses the fair values of financial assets
into the following four classifications:
(a) loans and receivables originated by the enterprise;
(b) held to maturity investments;
(c) financial assets held for trading; and
(d) available-for-sale financial assets.
6 For losses on loans and advances disclose:
30p43(b) (a) movements in provision for losses on loans and advances
during the period, including:
(i) amount charged to income in the period for losses on
uncollectible loans and advances;
(ii) amount charged in the period for loans and advances
written off; and
(iii) amount credited in the period for recovered loans and
advances previously written off;
30p43(c) (b) aggregate year-end provision for losses on loans and advances;
and
30p43(d) (c) aggregate amount included in the balance sheet for, and basis
used to determine the carrying amount of non-accrual loans
and advances.
30p50 7 Separate disclosure, as appropriations of retained earnings, of
amounts set aside for general banking risks, including future losses
and other unforeseeable risks or contingencies.

D3 Other disclosures
1 In addition to items shown at IAS 30 p8, the following accounting
policies:
30p43(a) (a) basis on which uncollectable loans/advances are expensed and
written off;
DV,30p48 (b) interest on non-accrual loans.
30p8 IAS 30 p8 suggests certain additional voluntary disclosures.

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30p26 2 The following contingent liabilities and commitments:
(a) nature and amount of commitments to extend credit that are
irrevocable because they cannot be withdrawn at the discretion
of the bank without the risk of incurring significant penalty or
expense; and
(b) nature and amount of contingent liabilities and commitments
arising from off balance sheet items, including those relating to:
– direct credit substitutes, including general guarantees of
indebtedness, bank acceptance guarantees and standby
letters of credit serving as guarantees for loans and securities;
– transaction-related contingent liabilities, including
performance bonds, bid bonds, warranties and standby letters
of credit related to particular transactions;
– short-term self-liquidating trade-related contingent liabilities
arising from the movement of goods, such as documentary
credits where the underlying shipment is used as security;
– sale and repurchase agreements not recognised in the
balance sheet;
– interest and foreign exchange rate related items, including
swaps, options and futures; and
– other commitments, note issuance facilities and revolving
underwriting facilities.
3 The following additional disclosures:
30p40 (a) significant net foreign currency exposures;
30p40 (b) significant geographical, customer or industry group, or other
risk concentrations of assets, liabilities and off balance sheet
items;
30p55 (c) fact that a bank is engaged in significant trust activities and an
indication of the extent of those activities, if applicable;
30p58 (d) related party transactions (including lending policies, each of
loans and advances, deposits, acceptances and promissory
notes; amounts lent and repaid; each type of income, interest
expense and commissions paid; loan provisions; commitments
and contingencies);
30p53 (e) aggregate amount of secured liabilities; and
30p53 (f) nature and carrying amount of assets pledged as security.
7p24 4 In the cash flow statement, cash flows arising from the following
operating, investing or financing activities may be reported on a
net basis:
(a) cash receipts and payments for acceptance and repayment of
deposits with a fixed maturity date;
(b) the placement of deposits with and withdrawal of deposits from
other financial institutions; and
(c) cash advances and loans made to customers and the repayment
of those advances and loans.

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Section E

Additional disclosures required by all retirement benefit plans

Y-NA-NM REF
26p35(a) 1 The report provided by the retirement plan should include the
following:
26p13,17 (a) statement of net assets available for benefits, disclosing:
– assets at period end, suitably classified;
– basis of valuation of assets;
– details of any single investment exceeding 5% of net assets
available for benefits or 5% of any class or type of security;
– details of any investment in the employer; and
– liabilities other than the actuarial present value of promised
retirement benefits;
26p34(a) (b) statement of changes in net assets available for benefits, including:
26p35(b) – employer contributions;
– employee contributions;
– investment income (eg interest, dividends);
– other income;
– benefits paid or payable (analysed, for example, as retirement,
death and disability benefits, and lump sum payments);
– administrative expenses;
– other expenses;
– taxes on income;
– profits and losses on disposal of investments;
– changes in value of investments; and
– transfers from and to other plans;
26p13, 34(c) (c) description of funding policy;
26p34(b) (d) summary of significant accounting policies;

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26p34(c) (e) description of plan, including the following details and any
26p36 changes therein during the period:
– names of employers;
– employee groups covered;
– number of participants receiving benefits;
– number of other participants (classified as appropriate);
– type of plan (defined contribution or defined benefit);
– whether participants contribute to the plan;
– description of retirement benefits promised to participants; and
– description of any plan termination terms; and
26p32 (f) for plan investments for which an estimate of fair value is not
possible, the reason why fair value is not used.
IAS 26 p16, 22 and 36 provides guidance on disclosures.
2 For defined benefit plans, disclosure of:
26p35(e) (a) significant actuarial assumptions made;
26p17, (b) the actuarial present value of promised retirement benefits,
18, 35(d) distinguishing between vested benefits and non-vested benefits
and the resulting excess or deficit (unless this information is
included in an accompanying actuarial report – see IAS 26 p26);
26p17 (c) date of the most recent actuarial valuation;
26p35(e) (d) method used to calculate present value of promised retirement
benefits;
26p18 (e) effect of any changes in actuarial assumptions that have had a
significant effect on the actuarial present value of promised
retirement benefits; and
26p19 (f) explanation of the relationship between the actuarial present
value of promised retirement benefits and the net assets available
for benefits and the policy for the funding of promised benefits.

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Section F

Suggested disclosures for financial review


outside the financial statements

Y-NA-NM REF
DV,1p8 1 Outside the financial statements – a financial review of:
(a) the main factors and influences determining performance,
including changes in the environment in which the enterprise
operates, the enterprise’s response to those changes and their
effect, and the enterprise’s policy for investment to maintain
and enhance performance, including its dividend policy;
(b) the sources of funding, gearing and risk management policies; and
(c) the strengths and resources of the enterprise whose value is
not reflected in the balance sheet under International
Accounting Standards.
DV, 2 Outside the financial statements – information about the principal
SIC-6p5 uncertainties which the enterprise faces because of a need for major
software modifications.
Note: although not specified by SIC-6, these disclosures may also
apply to the effect of the introduction of the euro.
DV,1p9 3 Outside the financial statements – environmental reports, value
added statements, etc, if management believes these will assist
users in making economic decisions.
DV, 4 Outside the financial statements – a commentary on the extent to
32p42 which financial instruments are used, the associated risks (and how
these are controlled or mitigated, for example by hedging risk
exposures) and the business purposes served.
IOSCO’s standard on operating and financing reviews
for prospectuses
DV,1p8 International Accounting Standards do not address the
DV,1p9 requirements for information to be included in a directors’ report or
financial commentary. Generally such requirements are determined
by local laws and regulations. IAS 1 encourages, but does not
require, companies to present, outside the financial statements, a
financial review by management which describes and explains the
main features of the enterprise’s financial performance and
financial position and the principal uncertainties it faces.

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In 1998 the International Organisation of Securities Commissions
issued “International Disclosure Standards for Cross-Border Offerings
and Initial Listings for Foreign Issuers”, comprising recommended
disclosure standards including an operating and financial review and
discussion of future prospects. IOSCO standards for prospectuses are
not mandatory – but they will increasingly be incorporated in
national stock exchange requirements both for prospectuses and
annual reports. The text of IOSCO’s Standard on Operating and
Financial Reviews and Prospects is reproduced below :
Discuss the company’s financial condition, changes in financial
condition and results of operations for each year and interim period
for which financial statements are required, including the causes of
material changes from year to year in financial statement line items,
to the extent necessary for an understanding of the company’s
business as a whole. Information provided also shall relate to all
separate segments of the company. Provide the information
specified below as well as such other information that is necessary
for an investor’s understanding of the company’s financial
condition, changes in financial condition and results of operation.
A. Operating Results. Provide information regarding significant
factors, including unusual or infrequent events or new
developments, materially affecting the company’s income from
operations, indicating the extent to which income was so affected.
Describe any other significant component of revenue or expenses
necessary to understand the company's results of operations.
1. To the extent that the financial statements disclose material
changes in net sales or revenues, provide a narrative discussion
of the extent to which such changes are attributable to changes
in prices or to changes in the volume or amount of products
or services being sold or to the introduction of new products
or services.
2. Describe the impact of inflation, if material. If the currency in
which financial statements are presented is of a country that has
experienced hyperinflation, the existence of such inflation, a
five year history of the annual rate of inflation and a discussion
of the impact of hyperinflation on the company’s business shall
be disclosed.
3. Provide information regarding the impact of foreign currency
fluctuations on the company, if material, and the extent to
which foreign currency net investments are hedged by currency
borrowings and other hedging instruments.
4. Provide information regarding any governmental economic,
fiscal, monetary or political policies or factors that have
materially affected, or could materially affect, directly or
indirectly, the company’s operations or investments by host
country shareholders.

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B. Liquidity and Capital Resources. The following information
shall be provided:
1. Information regarding the company's liquidity (both short and
long term), including:
(a) a description of the internal and external sources of liquidity
and a brief discussion of any material unused sources of
liquidity. Include a statement by the company that, in its
opinion, the working capital is sufficient for the company’s
present requirements, or, if not, how it proposes to provide
the additional working capital needed;
(b) an evaluation of the sources and amounts of the company’s
cash flows, including the nature and extent of any legal or
economic restrictions on the ability of subsidiaries to transfer
funds to the company in the form of cash dividends, loans or
advances and the impact such restrictions have had or are
expected to have on the ability of the company to meet its
cash obligations; and
(c) information on the level of borrowings at the end of the
period under review, the seasonality of borrowing
requirements and the maturity profile of borrowings and
committed borrowing facilities, with a description of any
restrictions on their use.
2. Information regarding the type of financial instruments used, the
maturity profile of debt, currency and interest rate structure. The
discussion also should include funding and treasury policies and
objectives in terms of the manner in which treasury activities are
controlled, the currencies in which cash and cash equivalents
are held, the extent to which borrowings are at fixed rates, and
the use of financial instruments for hedging purposes.
3. Information regarding the company’s material commitments for
capital expenditures as of the end of the latest financial year
and any subsequent interim period and an indication of the
general purpose of such commitments and the anticipated
sources of funds needed to fulfill such commitments.
C. Research and Development, Patents and Licenses etc. Provide
a description of the company’s research and development policies
for the last three years, where it is significant, including the
amount spent during each of the last three financial years on
company-sponsored research and development activities.
D. Trend Information. The company should identify the most
significant recent trends in production, sales and inventory, the
state of the order book and costs and selling prices since the
latest financial year. The company also should discuss, for at
least the current financial year, any known trends, uncertainties,
demands, commitments or events that are reasonably likely to
have a material effect on the company’s net sales or revenues,
income from continuing operations, profitability, liquidity or
capital resources, or that would cause reported financial
information not necessarily to be indicative of future operating
results or financial condition.

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Section G

Disclosures for Interim Financial Report

Y-NA-NM REF
34p9,10 1 An enterprise should publish in its interim financial report either:
(a) a complete set of financial statements; or
(b) a set of condensed financial statements.
34p9 If a complete set of financial statements is published, the form and
content of those statements should conform to the requirements of
IAS 1, ie all applicable sections of this disclosure checklist should
be applied for such interim financial reports.
If a set of condensed financial statements is published, only
section G of this disclosure checklist should be applied for the
interim financial report.
34p8 2 An interim financial report should include, at a minimum, the
following components:
(a) condensed balance sheet;
(b) condensed income statement;
(c) condensed statement showing either:
(i) all changes in equity; or
(ii) changes in equity except those arising from capital
transactions with owners and distributions to owners
(ie statement of recognised gains and losses);
(d) condensed cash flow statement; and
(e) selected explanatory notes (see paragraph 5 below).
34p10 3 Condensed primary statements should include, at a minimum,
each of the headings and subtotals that were included in its most
recent annual financial statements. Additional line items and notes
should be included if their omission would make the condensed
interim financial statements misleading.
34p11 4 Basic and diluted earnings per share should be presented on the
face of an interim income statement.

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34p16 5 Disclose, as a minimum, the following information in the notes, if
material and if not disclosed elsewhere in the interim financial report:
(a) a statement that the same accounting policies are followed in
the interim financial statements as compared with the most
recent annual financial statements; or, if those policies have been
changed, a description of the nature and effect of the change;
(b) explanatory comments about the seasonality or cyclicality of
interim operations;
(c) the nature and amount of items affecting assets, liabilities, equity,
net income, or cash flows that are unusual because of their
nature, size, or incidence (for examples, refer to IAS 34 p17);
(d) the nature and amount of changes in estimates of amounts
reported in prior interim periods of the current year, or in prior
years, if those changes have a material effect in the current
interim period (eg changes in estimates relating to inventory
write-downs, impairment losses etc);
(e) issuances, repurchases, and repayments of debt and equity
securities;
(f) dividends paid (aggregate or per share), separately for ordinary
shares and other shares;
(g) segment revenue and segment result for segments in primary
segment format (only if IAS 14 is applicable for this enterprise;
see section B1 of this checklist);
(h) material events subsequent to the end of the interim period that
have not been reflected in the financial statements for the
interim period;
(i) the effect of changes in the composition of the enterprise during
the interim period (eg business combinations, disposals,
restructurings and discontinued operations); and
(j) changes in contingent liabilities and assets since the last annual
balance sheet date.
34p16 6 In addition to the items in 5 above, the enterprise should also
disclose any other events or transactions that are material to an
understanding of the current interim period.
35p47 7 Discontinuing operations – describe any significant activities or
events since the end of the most recent annual reporting relating to
a discontinuing operation, including significant changes in the
amount or timing of cash flows relating to assets and liabilities to be
disposed of or settled (see IAS 35 and section C3 of this checklist).
34p19 8 Disclose that the interim financial statements comply with IAS 34.
An interim financial report should not be described as complying
with International Accounting Standards unless it complies with all
of the requirements of each applicable International Accounting
Standard and each applicable Interpretation of the Standing
Interpretations Committee.

International Accounting Standards – Disclosure Checklist 2001 is designed for the information of readers. While every
effort has been made to ensure accuracy, information contained in this publication may not be comprehensive or may
have been omitted which may be relevant to a particular reader. In particular, this publication is not intended as a study
of all aspects of International Accounting Standards, or as a substitute for reading the actual Standards when dealing with
specific issues. No responsibility for loss to any person acting or refraining from acting as a result of any material in this
publication can be accepted by PricewaterhouseCoopers. Recipients should not act on the basis of this publication
without seeking professional advice.

72 PricewaterhouseCoopers
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