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Model Financial Statements underIFRS as adopted by the EU2021
Model Financial Statements under IFRS as adopted by the EUThe model financial statements of International GAAP Holdings Limited for the year ended 31 December 2021 are intendedto illustrate the presentation and disclosure requirements of International Financial Reporting Standards (IFRSs) as adopted bythe EU. They also contain additional disclosures that are considered to be best practice, particularly where such disclosuresare included in illustrative examples provided within a specific Standard.International GAAP Holdings Limited is assumed to have presented financial statements in accordance with IFRS Standardsfor a number of years. Therefore, it is not a first-time adopter of IFRS Standards. Readers should refer to IFRS 1 First-timeAdoption of International Financial Reporting Standards for specific requirements regarding an entity’s first IFRS financialstatements. It is further assumed that International GAAP Holdings Limited does not qualify as an investment entity asdefined in IFRS 10.The model financial statements illustrate the impact of the application of the amendments to IFRS Standards adopted by theEU that were issued on or before 15 January 2022 and are mandatorily effective for the annual period beginning on 1 January2021.These model financial statements do not illustrate the impact of the application of new and revised IFRS Standards that arenot yet mandatorily effective on 1 January 2021.The model financial statements do not include separate financial statements for the parent, which may be required by locallaws or regulations, or may be prepared voluntarily. Where an entity presents separate financial statements that comply withIFRS Standards, the requirements of IAS 27 Separate Financial Statements (as revised in 2011) will apply. Separate statementsof profit or loss and other comprehensive income, financial position, changes in equity and cash flows for the parent willgenerally be required, together with supporting notes.Further, these model financial statements assume that neither the parent company nor its subsidiaries are entities whosefunctional currency is the currency of a hyperinflationary economy.In addition, the model financial statements have been presented without regard to local laws or regulations.Suggested disclosures are cross-referenced to the underlying requirements in the texts of the relevant Standards andInterpretations.For the purposes of presenting the statements of profit or loss and other comprehensive income and cash flows, thealternatives allowed under IFRS Standards for those statements have been illustrated. Preparers should select thealternatives most appropriate to their circumstances and apply the chosen presentation method consistently.Note that in these model financial statements, we have frequently included line items that are not applicable to InternationalGAAP Holdings Limited, so as to illustrate items that are commonly encountered in practice. This does not mean that we haveillustrated all possible disclosures, nor should it be taken to mean that entities are required to display such line items inpractice.These model financial statements were prepared based on the original publication IFRS Model Financial Statements 2021issued by Deloitte’s London office in 2021 and tailored to be applicable for the entities preparing their financial statements incompliance with IFRSs as adopted by the EU.Areas that could be affected by climate change or COVID-19 are marked with symbols in the margin. Thesymbolindicates that the model financial statements could be impacted by the effects of the COVID-19 pandemic. Thesymbolindicates that disclosures might need to be adapted to explain how the group impacts or/and is impacted by climate change.The tables in Appendix 1 give an overview of all areas impacted by climate change and/or COVID-19.To see in more detail how areas of the financial statements can be affected by COVID-19, please see our IFRS in Focusnewsletter Accounting Considerations related to the Coronavirus 2019 Disease.
Model Financial Statements under IFRS as adopted by the EUContentsConsolidated statement of profit or loss and other comprehensive income1Alt. 1 – Presentation as two statements, with expenses analysed by function3Alt. 2 – Single statement presentation, with expenses analysed by nature6Consolidated statement of financial position9Consolidated statement of changes in equity15Consolidated statement of cash flowsAlt. 1 – Indirect method of reporting cash flows from operating activities17Alt. 2 – Direct method of reporting cash flows from operating activities20Notes to the consolidated financial statementsAppendix 1 – Areas of the model financial statements affected by climate change and COVID-1922176
Model Financial Statements under IFRS as adopted by the EUIndex to the notes tothe consolidated financial statements1General information. 222Adoption of new and revised International Financial Reporting Standards (IFRSs) as adopted by the EU . 223Significant accounting policies. 324Critical accounting judgements and key sources of estimation uncertainty . 615Revenue . 666Operating segments . 677Profit for the year . 738Staff costs . 749Finance income . 7410Other gains and losses . 7411Finance costs . 7512Income Tax . 7613Discontinued operations. 7814Dividends . 8015Earnings per share. 8016Goodwill . 8217Other intangible assets . 8518Property, plant and equipment . 8619Investment property . 8920Subsidiaries . 9221Associates . 9322Joint ventures . 9623Joint operations . 9724Investments in financial assets . 9825Inventories . 10126Right to returned goods asset . 10127Contract assets . 10128Contract costs. 10329Finance lease receivables . 10330Leases (Group as a lessee) . 10431Trade and other receivables . 10632Borrowings. 10933Convertible loan notes . 11134Derivative financial instruments. 11235Deferred tax. 113
Model Financial Statements under IFRS as adopted by the EU36Obligations under finance leases . 11437Trade and other payables . 11538Other financial liabilities . 11539Provisions. 11640Share capital . 11841Share premium account. 11842Own shares . 11843Revaluation reserves . 11944Option premium on convertible notes reserve . 12145Financial liabilities at FVTPL credit risk reserve . 12146Cash flow hedge reserve . 12147Cost of hedging reserve . 12248Foreign exchange translation reserve . 12449Share-based payments reserve . 12450Retained earnings. 12551Non-controlling interests . 12552Disposal of subsidiary . 12753Acquisition of subsidiaries . 12754Notes to the cash flow statement . 13055Contingent liabilities . 13356Operating lease arrangements . 13357Share-based payments . 13458Retirement benefit plans . 13659Deferred income – government grant . 14160Contract liabilities. 14261Refund liability . 14362Financial Instruments . 14363Events after the reporting period. 17364Related party transactions . 17365Approval of the financial statements . 175
Model Financial Statements under IFRS as adopted by the EU*SourceInternational GAAP Holdings LimitedIAS 1:51(b)IAS 1:10(b)IAS 1:10(ea)IAS 1:10AConsolidated statement of profit or lossFor the year ended 31 December 2021IAS 1:51(c)IAS 1:113IAS 1:51(d) - (e)IAS 8:22[Alt. 1]Note31/12/202131/12/2020CUCUContinuing operationsIAS 1:82(a)FRS 15:113(a)RevenueIAS 1:99 – 103Cost of salesIAS 1:85IAS 1:85AIAS 1:85BGross profitIAS 1:99 – 103Distribution costsIAS 1:99 – 103Administrative expensesIAS 1:99 – 103Other expensesIAS 1:82(c)Share of results of associates21IAS 1:82(c)Share of results of joint ventures22Finance income – interest income9Finance income – other9IAS 1:82(aa)IFRS 7:20AGains and losses arising from the derecognition offinancial assets measured at amortised costIAS 1:82(ca)Gains and losses on reclassification of financialassets from amortised cost to FVTPLIAS 1:82(cb)Gains and losses on reclassification of financialassets from FVTOCI to FVTPLIAS 1:82(ba)Impairment losses and gains (including reversals ofimpairment losses) on financial assets andcontract assets57Other gains and losses10IAS 1:82(b)IFRS 16:49Finance costs11IAS 1:85IAS 1:85AIAS 1:85BProfit before taxIAS 1:82(d)IAS 12:77Income taxIAS 1:85IAS 1:85AIAS 1:85BProfit for the year from continuing operations12*This symbol indicates that this area of the model financial statements may be impacted by the effectsof the COVID-19 pandemic. For further information on how it may be impacted, please see the table inAppendix 1. For areas affected by the effects of COVID-19, it would be expected that the entitydiscusses in its disclosures how the area is affected.1
Model Financial Statements under IFRS as adopted by the EUSourceInternational GAAP Holdings LimitedDiscontinued operationsIAS 1:82(ea)IFRS 5:33(a)Loss for the year from discontinued operationsIAS 1:81A(a)Profit for the yearIAS 1:81B(a)Attributable to:137Owners of the CompanyNon-controlling interestsIAS 33:2 – 3IAS 33:4AIAS 33:66IAS 33:69Earnings per shareFrom continuing operationsBasic15Diluted15From continuing and discontinued operationsBasic15Diluted15Commentary:The format outlined above aggregates expenses according to their function.2
Model Financial Statements under IFRS as adopted by the EUSourceInternational GAAP Holdings LimitedIAS 1:10AIAS 1:10(b)IAS 1:10(ea)Consolidated statement of comprehensive incomeFor the year ended 31 December 2021IAS 1:113NoteIAS 1:10AProfit for the yearIAS 1:82A(a)(i)Items that will not be reclassified subsequentlyto profit or loss:Gains/(losses) on property revaluation43Remeasurement of net defined benefit liability58IFRS 7:20(a)(vii)Fair value gain/(loss) on investments in equity instrumentsdesignated as at FVTOCI43IFRS 7:20(a)(i)IFRS 9:B5.7.9Fair value gain/(loss) on financial liabilities designated as atFVTPL attributable to changes in credit risk45IAS 1:82A(b)(i)Share of other comprehensive income of associates21IAS 1:82A(b)(i)Share of other comprehensive income of joint ventures22IAS 1:90IAS 1:91(b)Income tax relating to items that will not be reclassifiedsubsequently to profit or loss12IAS 1:82A(a)(ii)Items that may be reclassified subsequentlyto profit or loss:Debt instruments measured at FVTOCI:31/12/202131/12/2020CUCU43IFRS 7:20(a)(viii) IFRS Fair value gain/(loss) on investments in debt instruments9:5.7.10measured at FVTOCIIFRS 9:B5.7.1AIFRS 7:20(a)(viii)Less: Cumulative (gain)/loss on investments in debtinstruments classified as at FVTOCI reclassified to profitor loss upon disposalIAS 1:82(cb)Less: Cumulative (gain)/loss on investments in debtinstruments classified as at FVTOCI reclassified to profitor loss upon reclassification from FVTOCI to FVTPLIFRS 7:24C(b)(iv)IFRS 7:24E(a)Cash flow hedge:IFRS 7:24E(a)IAS 1:96IFRS 9:6.5.11(d)(i)Fair value gain/(loss) arising on hedging instrumentsduring the period46Less: Cumulative (gain)/loss arising on hedginginstruments reclassified to profit or lossForeign currency translation, net of investment hedges ofa foreign operationIAS 21:52(b)48Foreign exchange differences on translation of foreignoperations3
Model Financial Statements under IFRS as adopted by the EUSourceInternational GAAP Holdings LimitedLess: (Gain)/loss reclassified to profit or loss on disposal offoreign operationIFRS 7:24C(b)Gain/(loss) arising on hedging instruments designated inhedges of the net assets in foreign operationLess: (Gain)/loss on hedging instruments reclassified toprofit or loss on disposal of foreign operationIFRS 7:24E(b)-(c)IFRS 9:6.5.15(b)(ii)(iii) and (c)IFRS 9:6.5.16IAS 1:96Cost of hedging:47Changes in the fair value during the period in relation totransaction-related hedged itemsChanges in the fair value during the period in relation totime-period related hedged itemsLess: Cumulative (gain)/loss arising on changes in the fairvalue in relation to transaction-related hedged itemsreclassified to profit or lossLess: Amortisation to profit or loss of cumulative(gain)/loss arising on changes in the fair value in relationto time-period related hedged itemIAS 1:82A(b)(ii)Share of other comprehensive income of associates21IAS 1:82A(b)(ii)Share of other comprehensive income of joint ventures22IAS 1:90IAS 1:91(b)Income tax relating to items that may be reclassifiedsubsequently to profit or loss12IAS 1:81A(b)Other comprehensive income for the year, net of incometaxIAS 1:81A(c)Total comprehensive income for the yearIAS 1:81B(b)Total comprehensive income attributable to:Owners of the CompanyNon-controlling interests4
Model Financial Statements under IFRS as adopted by the EUSourceInternational GAAP Holdings LimitedCommentary:One statement vs. two statementsIAS 1 permits an entity to present profit or loss and other comprehensive income (OCI) in either a singlestatement or in two separate but consecutive statements. Alt 1 above illustrates the presentation of profitor loss and OCI in two separate but consecutive statements with expenses analysed by function. Alt 2 (seethe following pages) illustrates the presentation of profit or loss and OCI in one statement with expensesanalysed by nature.Whichever presentation approach is adopted, the distinction is retained between items recognised in profitor loss and items recognised in OCI. Under both approaches, profit or loss, total OCI, as well ascomprehensive income for the period (being the total of profit or loss and OCI) should be presented. Underthe two‑statement approach, the separate statement of profit or loss ends at ‘profit for the year’, and this‘profit for the year’ is then the starting point for the statement of comprehensive income. In addition, theanalysis of ‘profit for the year’ between the amount attributable to the owners of the Company and theamount attributable to non‑controlling interests is presented as part of the separate statement of profit orloss.Note that where the two‑statement approach is adopted (as above), as required by IAS 1:10A, thestatement of profit or loss must be displayed immediately before the statement of comprehensive income.OCI: items that may or may not be reclassifiedIrrespective of whether the one‑statement or the two‑statement approach is followed, the items of OCIshould be classified by nature and grouped into those that, in accordance with other IFRS Standards: (a)will not be reclassified subsequently to profit or loss; and (b) may be reclassified subsequently to profit orloss when specific conditions are met. An entity should present its share of OCI of associates and jointventures accounted for using the equity method separately from those arising from the Group.Presentation options for reclassification adjustmentsIn addition, in accordance with IAS 1:94, an entity may present reclassification adjustments in thestatement of profit or loss and other comprehensive income or in the notes. In these model financialstatements the reclassification adjustments have been presented in the notes.Presentation options for income tax relating to items of OCIFurthermore, for items of OCI, additional presentation options are available as follows: the individual itemsof OCI may be presented net of tax in the statement of profit or loss and other comprehensive income, orthey may be presented gross with a single line deduction for tax relating to those items by allocating thetax between the items that may be reclassified subsequently to the profit or loss section and those that willnot be reclassified subsequently to profit or loss section as presented in these model financial statements.Whichever option is selected, the income tax relating to each item of OCI must be disclosed, either in thestatement of profit or loss and other comprehensive income or in the notes (see Note 13).SubtotalsWhen an entity presents subtotals, IAS 1:85A requires that those subtotals: Comprise of line items made up of amounts recognised and measured in accordance with IFRSStandards Be presented and labelled in a manner that makes the line items that constitute the subtotal clear andunderstandable Be consistent from period to period Not be displayed with more prominence than the subtotals and totals required in IFRS StandardsImmaterial itemsAn entity need not provide a specific disclosure required by an IFRS Standard if the information resultingfrom that disclosure is not material. This is the case even if the IFRS Standard contains a list of specificrequirements or describes them as minimum requirements.5
Model Financial Statements under IFRS as adopted by the EUSourceInternational GAAP Holdings LimitedIAS 1:10(b)IAS 1:10(ea)IAS 1:10AConsolidated statement of profit or loss and othercomprehensive incomeFor the year ended 31 December 2021IAS 1:113[Alt. 2]Note31/12/202131/12/2020CUCUContinuing operationsIAS 1:82(a)IFRS 15:113(a)Revenue5Finance income – interest income9Finance income – other9IAS 1:99Changes in inventories of finished goods and work inprogressIAS 1:99Raw materials and consumables usedIAS 1:99Depreciation and amortisation expensesIAS 1:99Employee benefits expenseIAS 1:82(b)IFRS 16:49Finance costsIAS 1:99Transport costsIAS 1:99Advertising costsIAS 1:99Impairment of property, plant and equipment11Impairment of goodwillOther expensesIAS 1:82(c)Share of results of associates21IAS 1:82(c)Share of results of joint ventures22IAS 1:82(aa)IFRS 7:20AGain and losses arising from the derecognition offinancial assets measured at amortised costIAS 1:82(ca)Gain and losses on reclassification of financial assetsfrom amortised cost to FVTPLIAS 1:82(ba)Impairment losses (including reversals of impairmentlosses) on financial assets and contract assetsIAS 1:82(cb)Gain and losses on reclassification of financial assetsfrom FVTOCI to FVTPLOther gains and lossesIAS 1:85IAS 1:85AIAS 1:85BProfit before taxIAS 1:82(d)IAS 12:77Income taxIAS 1:85IAS 1:85AIAS 1:85BProfit for the year from continuing operations81012Discontinued operationsIAS 1:82(ea)IFRS 5:33(a)Loss for the year from discontinued operationsIAS 1:81A(a)Profit for the year1376
Model Financial Statements under IFRS as adopted by the EUSourceInternational GAAP Holdings LimitedOther comprehensive income for the yearIAS 1:82A(a)(i)Items that will not be reclassified subsequently to profitor loss:Gains/(losses) on property revaluation43Remeasurement of net defined benefit liability58IFRS 7:20(a)(vii)Fair value gain/(loss) on investments in equityinstruments designated as at FVTOCI43IFRS 7:20(a)(i) IFRS9:B5.7.9Fair value gain/(loss) on financial liabilities designatedas at FVTPL attributable to changes in credit risk45IAS 1:82A(b)(i)Share of other comprehensive income of associates21IAS 1:82A(b)(i)Share of other comprehensive income of jointventures22IAS 1:90IAS 1:91(b)Income tax relating to items that will not bereclassified subsequently to profit or loss12IAS 1:82A(a)(ii)Items that may be reclassified subsequently to profit orloss:Debt instruments measured at FVTOCI:43IFRS 7:20(a)(viii) IFRS Fair value gain/(loss) on investments in debt9:5.7.10instruments measured at FVTOCIIFRS 9B5.7.1AIFRS 7:20(a)(viii)Less: Cumulative (gain)/loss on investments in debtinstruments classified as at FVTOCI reclassified toprofit or loss upon disposalIAS 1:82(cb)Less: Cumulative (gain)/loss on investments in debtinstruments classified as at FVTOCI reclassified toprofit or loss upon reclassification from FVTOCI toFVTPLIFRS 7:24C(b)(iv) IFRS Cash flow hedges:7:24E(a)IFRS 7:24E(a)IAS 1:96IFRS 9:6.5.11(d)(i)46Fair value gain/(loss) arising on hedging instrumentsduring the periodLess: Cumulative (gain)/loss arising on hedginginstruments reclassified to profit or lossForeign currency translation, net of investmenthedges of a foreign operationIAS 21:52(b)48Foreign exchange differences on translation of foreignoperationsLess: (Gain)/loss reclassified to profit or loss ondisposal of foreign operationIFRS 7:24C(b)Gain(loss) arising on hedging instruments designatedin hedges of the net assets in foreign operationLess: (Gain)/loss on hedging instruments reclassifiedto profit or loss on disposal of foreign operation7
Model Financial Statements under IFRS as adopted by the EUSourceInternational GAAP Holdings LimitedIFRS 7:24E(b)-(c)IFRS 9:6.5.15(
IFRS Standards, the requirements of IAS 27 Separate Financial Statements (as revised in 2011) will apply. Separate statements of profit or loss and other comprehensive income, financial position, changes in equity and cash flows for the parent will generally be required, together with supporting notes.
