Disclosure Checklist For Medium Sized Companies

Presentation & Disclosure Checklist
International Financial Reporting Standard for Small and Medium-sized E

SMEs) & 5th Schedule to the Companies Act, 2017
Preface
This presentation and disclosure checklist is developed based on the requirements of IFRS for SMEs issued in May 2015 e
beginning on or after 1 January 2017 and 5th schedule to the Companies Act, 2017.
This publication is only developed for facilitation and assistance of members of the Institute of Chartered Accountants
neither a substitute for reference to IFRS for SMEs, related interpretations, and provisions of the Companies Act, 2017,
accounting or other professional advice. While care has been taken to ensure accuracy of the presentation and disclosu
publication may contain errors or omissions that may be relevant to any particular reader.
ICAP accepts no responsibility for losses incurred by any party acting or not acting as a result of this material. This publ
facilitate the members in understanding and complying with the requirements for preparing financial statements by an
and the Companies Act, 2017, and should not be interpreted as a legal requirement.
Structure of the Checklist

The structure of this checklist is as follows:
Worksheet 'Summary of Results": This work sheet may be used to summarise the results of the presentation and disclo
Worksheet 'Table of Contents": This work sheet provides list of presentation and disclosure requirements and link to th
section.
Worksheets 'Section [No.]": These worksheets provide presentation and disclosure checklist for each section of IFRS fo
Worksheet '5th Schd Checklist"": This worksheet provides presentation and disclosure checklist for 5th schedule to the
SUMMARY OF RESULTS
General
This work sheet may be used to summarise the results of the presentation and disclosure checks performed.
Areas of noncompliance Follow up & Resolution

The following areas of noncompliance were noted: Follow up and ultimate resolution of the issues are as follows:
Areas requiring further attention Follow up & Resolution

The following areas were identified that need further attention: Follow up and ultimate resolution of the issues are as follows:
Areas of change in presentation and disclosure requirements as compared to prior year: Follow up & Resolution
The following areas were identified that changed as compared to prior year: Follow up and ultimate resolution of the issues are as follows:
Table of Contents
Introduction
This work sheet provides list of presentation and disclosure requirements and link to the checklist for relevant section. With
regard to the sections which do not provide any presentation and disclosure requirement, the fact has been mentioned in the
column "Link to the Presentation & Disclosure Checklist".
Section Link to the Presentation & Disclosure Checklist
The section does not include any presentation or disclosure

Section 1 - Small and Medium-Sized Entities
requirement.

Section 2 - Concepts and Pervasive Principles
requirement.
Section 3 - Financial Statement Presentation Section 3
Section 4 - Statement of Financial Position Section 4
Section 5 - Statement of Comprehensive Income and Income

Section 5
Statement
Section 6 - Statement of Changes in Equity and Statement of

Section 6
Income and Retained Earnings
Section 7 - Statement of Cash Flows Section 7
Section 8 - Notes to the Financial Statements Section 8
Section 9 - Consolidated and Separate Financial Statements Section 9
Section 10 - Accounting Policies, Estimates and Errors Section 10
Section 11 - Basic Financial Instruments Section 11
Section 12 - Other Financial Instruments Issues Section 12
Section 13 - Inventories Section 13
Section 14 - Invesments in Associates Section 14
Section 15 - Investments in Joint Ventures Section 15
Section 16 - Investment Property Section 16
Section 17 - Property, plant and equipment Section 17
Section 18 - Intangible Assets other than Goodwill Section 18
Section 19 - Business Combinations and Goodwill Section 19
Section 20 - Leases Section 20

Section 21 - Provisions and contingencies Section 21

Section 22 - Liabilities and Equity
requirement.
Section 23 - Revenue Section 23
Section 24 - Government Grants Section 24
Section 25 - Borrowing Costs Section 25
Section 26 - Share-based Payment Section 26
Section 27 - Impairment of Assets Section 27
Section 28 - Employee Benefits Section 28
Section 29 - Income tax Section 29
Section 30 - Foreign Currency Translation Section 30
Section 31 - Hyperinflation Section 31
Section 32 - Events after the end of the reporting period Section 32
Section 33 - Related Party Disclosures Section 33
Section 34 - Specialised Activities Section 34
Section 35 - Transition to the IFRS for SMEs Section 35
5th Schedule to the Companies Act, 2017 5th Schd Checklist

Back to "Table of Contents"
Section 3 Financial Statement Presentation

Introduction
This section of the checklist addresses Section 3, which prescribes the basis for the
fair presentation and contents of the general purpose financial statements, to
ensure comparability both with the entity’s financial statements of previous periods
and with the financial statements of other entities.
Reference Yes / No / Comments

Presentation/disclosure requirement
N/A
Complete set of financial statements
A complete set of financial statements comprises:
3.17(a) (a) a statement of financial position as at the reporting date;
3.17(b) either:
3.17(b)(i) (b)(i) a single statement of comprehensive income for the reporting period
displaying all items of income and expense recognised during the period
including those items recognised in determining profit or loss (which is a
subtotal in the statement of comprehensive income(e) and items of other
comprehensive income, or
3.17(b)(ii) (b)(ii) a separate income statement and a separate statement of

comprehensive income. If an entity chooses to present both an income
statement and a statement of comprehensive income, the statement of
comprehensive income begins with profit or loss and then displays the items of
other comprehensive income.
3.17(c) (c) a statement of changes in equity for the reporting period.

3.17(d) (d) a statement of cash flows for the reporting period.
3.17(e) (e) notes, comprising a summary of significant accounting policies and other
explanatory information.
3.21 In a complete set of financial statements, an entity shall present each financial
statement with equal prominence.
Fair presentation and compliance with IFRSs
3.3
Did the entity whose financial statements comply with the IFRS for SMEs, make an
explicit and unreserved statement of such compliance in the notes?
3.8 When preparing financial statements, management shall make an assessment of an

entity’s ability to continue as a going concern.
3.8 An entity shall prepare financial statements on a going concern basis unless
management either intends to liquidate the entity or to cease trading, or has no
realistic alternative but to do so.
3.9 When management is aware, in making its assessment, of material uncertainties
related to events or conditions that cast significant doubt upon the entity’s ability
to continue as a going concern, the entity shall disclose those uncertainties
3.9 When an entity does not prepare financial statements on a going concern basis, it
shall disclose that fact, together with the basis on which the financial statements
are prepared and the reason why the entity is not regarded as a going concern.
3.15 Materiality and aggregation
An entity shall present separately each material class of similar items. An entity
shall present separately items of a dissimilar nature or function unless they are
immaterial.
2.52 Offsetting
An entity shall not offset assets and liabilities or income and expenses, unless
required or permitted by this IFRS.
3.10 Frequency of reporting
3.10(a) An entity shall present a complete set of financial statements (including
comparative information–see paragraph 3.14) at least annually. When the end of an
entity’s reporting period changes and the annual financial statements are presented
for a period longer or shorter than one year, the entity shall disclose the following:
The entity shall disclose:
3.10(b) (a) that fact.

3.10(c) (b) the reason for using a longer or shorter period.
(c) the fact that comparative amounts presented in the financial statements
(including the related notes) are not entirely comparable.
3.14 Comparative information
3.14
Except when IFRS for SME Standard permits or requires otherwise, an entity shall
disclose comparative information in respect of the previous comparable period for
all amounts presented in the current period’s financial statements.
3.20 An entity shall include comparative information (except when this Standard permits
or requires otherwise) for narrative and descriptive information when it is relevant
to an understanding of the current period’s financial statements.
3.12
Because paragraph 3.14 requires comparative amounts in respect of the previous
period for all amounts presented in the financial statements, a complete set of
financial statements means that an entity shall present, as a minimum, two of each
of the required financial statements and related notes.
When the presentation or classification of items in the financial statements is

changed, an entity shall reclassify comparative amounts unless the reclassification is
impracticable.
3.12(a) The entity shall disclose:
3.12(b) (a) the nature of the reclassification;
3.12(c) (b) the amount of each item or class of items that is reclassified; and
3.13 (c) the reason for the reclassification.
The entity shall disclose - If it is impracticable to reclassify comparative amounts,
an entity shall disclose why reclassification was not practicable.
3.11 Consistency of presentation
3.11(a) An entity shall retain the presentation and classification of items in the financial
statements from one period to the next unless:
3.11(b) (a) it is apparent, following a significant change in the nature of the entity’s
operations or a review of its financial statements, that another presentation or
classification would be more appropriate having regard to the criteria for the
selection and application of accounting policies in Section 10 Accounting
Policies, Estimates and Errors, or
(b) this IFRS requires a change in presentation.

3.23 Identification of the financial statements
3.23 An entity shall clearly identify each of the financial statements and the notes and
distinguish them from other information in the same document.
3.23(a) The entity shall also display the following information prominently, and repeat it
when necessary for an understanding of the information presented:
3.23(b) (a) the name of the reporting entity and any change in its name since the end
of the preceding reporting period.
3.23(c) (b) whether the financial statements cover the individual entity or a group of
entities.
3.23(d) (c) the date of the end of the reporting period and the period covered by the
financial statements.
3.23(e) (d) the presentation currency, as defined in Section 30 Foreign Currency

Translation.
3.24 (e) the level of rounding, if any, used in presenting amounts in the financial
statements.
3.24(a) An entity shall disclose the following in the notes:
3.24(b) (a) the domicile and legal form of the entity, its country of incorporation and
the address of its registered office (or principal place of business, if different
from the registered office).
(b) a description of the nature of the entity’s operations and its principal
activities.
3.25 IFRS for SMEs Standard does not address presentation of segment information,
earnings per share, or interim financial reports by a small or medium-sized
entity. An entity making such disclosures shall describe the basis for preparing
and presenting the information.
Section 4 Statement of Financial Position

Introduction
This section of the checklist addresses Section 4 which sets out the information that
is to be presented in a statement of financial position and how to present it. The
statement of financial position (sometimes called the balance sheet) presents an
entity’s assets, liabilities and equity as of a specific date - the end of the reporting
period.
Reference Comments
Yes / No /
N/A
Statement of financial position
Information to be presented in the statement of financial position
4.2 As a minimum, the statement of financial position sheet shall include line items that
present the following amounts:
4.2(a) (a) cash and cash equivalents.
4.2(b) (b) trade and other receivables.
4.2(c) (c) financial assets (excluding amounts shown under (a), (b), (j) and (k)).
4.2(d) (d) inventories.
4.2(e) (e) property, plant and equipment.
4.2(f) (f) investment property carried at fair value through profit or loss.
4.2(g) (g) intangible assets.
4.2(h) (h) biological assets carried at cost less accumulated depreciation and
impairment.
4.2(i) (i) biological assets carried at fair value through profit or loss.
4.2(j) (j) investments in associates.
4.2(k) (k) investments in jointly controlled entities.
4.2(l) (l) trade and other payables.
4.2(m) (m) financial liabilities (excluding amounts shown under (l) and (p)).
4.2(n) (n) liabilities and assets for current tax.
4.2(o) (o) deferred tax liabilities and deferred tax assets (these shall always be
classified as non-current).
4.2(p) (p) provisions.
4.2(q) (q) non-controlling interest, presented within equity separately from the
equity attributable to the owners of the parent.
4.2(r) (r) equity attributable to the owners of the parent.
4.3 An entity shall present additional line items, headings and subtotals in the
statement of financial position when such presentation is relevant to an
understanding of the entity’s financial position.
4.10 The judgement on whether additional items are presented separately is based on an
assessment of all of the following:
(a) the amounts, nature and liquidity of assets;
the function of assets within the entity; and
the amounts, nature and timing of liabilities.
Current/non-current distinction
4.4 An entity shall present current and non-current assets, and current and non-current
liabilities, as separate classifications in its statement of financial position.
4.4 The entity can present all assets and liabilities in order of approximate liquidity
(ascending or descending), when a presentation based on liquidity provides
information that is reliable and more relevant.
Current assets
An entity shall classify an asset as current when any of the following criteria are
met:
4.5(a) (a) it expects to realize the asset, or intends to sell or consume it, in the
entity’s normal operating cycle;
4.5(b) (b) it holds the asset primarily for the purpose of trading;
4.5(c) (c) it expects to realize the asset within twelve months after the reporting
date; or
4.5(d) (d) the asset is cash or a cash equivalent, unless it is restricted from being
exchanged or used to settle a liability for at least twelve months after the
reporting date.
4.6 An entity shall classify all other assets, other than those meeting one of the criteria
set out in paragraph 4.5 of Section 4 (see above), as non-current.
Current liabilities
An entity shall classify a liability as current when:
4.7(a) (a) it expects to settle the liability in the entity’s normal operating cycle;
4.7(b) (b) it holds the liability primarily for the purpose of trading;
4.7(c) (c) the liability is due to be settled within twelve months after the reporting
date; or
4.7(d) (d) the entity does not have an unconditional right to defer settlement of the
liability for at least twelve months after reporting date.
4.8 An entity shall classify all other liabilities as non-current.
Information to be presented either in the statement of financial position or in
the notes
An entity shall disclose, either in the statement of financial position or in the notes,
the following sub classifications of the line items presented:
4.11(a) (a) property, plant and equipment in classifications appropriate to the entity.
4.11(b) (b) trade and other receivables showing separately amounts due from related
parties, amounts due from other parties, and receivables arising from accrued
income not yet billed.
4.11(c) (c) inventories, showing separately amounts of inventories:
(i) held for sale in the ordinary course of business.
(ii) in the process of production for such sale.
(iii) in the form of materials or supplies to be consumed in the production
process or in the rendering of services.
4.11(d) (d) trade and other payables, showing separately amounts payable to trade
suppliers, payable to related parties, deferred income and accruals.
4.11(e) (e) provisions for employee benefits and other provisions.
4.11(f) (f) classes of equity, such as paid-in capital, share premium, retained earnings and
items of income and expense that, as required by this IFRS, are recognised in other
comprehensive income and presented separately in equity.
An entity with share capital shall disclose the following, either in the statement of
financial position or in the notes:
4.12(a) a) for each class of share capital:
i) the number of shares authorised;
ii) the number of shares issued and fully paid, and issued but not
fully paid;
iii) par value per share, or that the shares have no par value;
iv) a reconciliation of the number of shares outstanding at the
beginning and at the end of the period;
v) the rights, preferences and restrictions attaching to that class,
including restrictions on the distribution of dividends and the repayment
of capital;
vi) shares in the entity held by the entity or by its subsidiaries or
associates; and
vii) shares reserved for issue under options and contracts for the sale
of shares, including the terms and amounts; and
4.12(b) b) a description of the nature and purpose of each reserve within equity.
4.13 An entity without share capital, such as a partnership or trust, shall disclose
information equivalent to that required by paragraph 4.12(a) (see above), showing
changes during the period in each category of equity, and the rights, preferences
and restrictions attaching to each category of equity.
4.14 If, at the reporting date, an entity has a binding sale agreement for a major disposal
of assets, or a group of assets and liabilities, the entity shall disclose the following
information:
4.14(a) (a) a description of the asset(s) or the group of assets and liabilities.
4.14(b) (b) a description of the facts and circumstances of the sale or plan.
4.14(c) (c) the carrying amount of the assets or, if the disposal involves a group of
assets and liabilities, the carrying amounts of those assets and liabilities.
Section 5 Statement of Comprehensive Income and Income Statement

Introduction
This section of the checklist addresses Section 5 which requires an entity to present
its total comprehensive income for a period (i.e. its financial performance for the
period) in either one or two financial statements. It sets out the information that is
to be presented in those statements and how to present it.

N/A
Statement of comprehensive income
5.2 An entity shall present its total comprehensive income for a period either:
5.2(a) (a) in a single statement of comprehensive income, in which case the
statement of comprehensive income presents all items of income and expense
recognised in the period, or
5.2(b) (b) in two statements: an income statement and a statement of
comprehensive income in which case the income statement presents all items
of income and expense recognised in the period except those that are
recognised in total comprehensive income outside of profit or loss as
permitted or required by this IFRS.
Information to be presented in the statement of comprehensive income

As a minimum, an entity shall include, in the statement of comprehensive income,
line items that present the following amounts for the period:
5.5(a) (a) revenue.
5.5(b) (b) finance costs.
5.5(c) (c) share of the profit or loss of investments in associates (see Section 14
Investments in Associates) and jointly controlled entities (see Section 15
Investments in Joint Ventures) accounted for using the equity method.
5.5(d) (d) tax expense excluding tax allocated to items (e), (g) and (h) below (see
paragraph 29.27).
5.5(e) (e) a single amount comprising the total of
(i) the post-tax profit or loss of a discontinued operation, and
(ii) the post-tax gain or loss recognised on the measurement to fair value less
costs to sell or on the disposal of the net assets constituting the discontinued
operation.
5.5(f) (f) profit or loss (if an entity has no items of other comprehensive income, this line
need not be presented).
5.5(g) (g) each item of other comprehensive income (see paragraph 5.4(b)) classified by
nature (excluding amounts in (h)).
5.5(h) (h) share of the other comprehensive income of associates and jointly controlled
entities accounted for by the equity method.
5.5(i) (i) total comprehensive income (if an entity has no items of other comprehensive
income, it may use another term for this line such as profit or loss).
An entity shall disclose separately the following items in the statement of

comprehensive income as allocations for the period:
5.6(a) (a) profit or loss for the period attributable to
(i) non-controlling interest.
(ii) owners of the parent.
5.6(b) (b) total comprehensive income for the period attributable to
(i) non-controlling interest.
(ii) owners of the parent.
5.7 Under the two-statement approach:
1) The income statement shall display, as a minimum, line items that present the
amounts in paragraph 5.5(a)–5.5(f) (see above) for the period, with profit or loss as
the last line.
2) The statement of comprehensive income shall begin with profit or loss as its first
line and shall display, as a minimum, line items that present the amounts in
paragraph 5.5(g)–5.5(i) and paragraph 5.6 for the period.
Requirements applicable to both approaches

5.8 Retrospective adjustments of prior periods: Under this IFRS, the effects of
corrections of errors and changes in accounting policies are presented as
retrospective adjustments of prior periods rather than as part of profit or loss in the
period in which they arise (see Section 10).
5.9 Additional line items: An entity shall present additional line items, headings and
subtotals in the statement of comprehensive income (and in the income statement,
if presented), when such presentation is relevant to an understanding of the entity’s
financial performance.
5.10 Extraordinary items: An entity shall not present or describe any items of income
and expense as ‘extraordinary items’ in the statement of comprehensive income (or
in the income statement, if presented) or in the notes.
Analysis of expenses
5.11 An entity shall present an analysis of expenses using a classification based on either
the nature of expenses or the function of expenses within the entity, whichever
provides information that is reliable and more relevant.
Section 6 Statement of Changes in Equity and Statement of Income and Retained

Earnings
Introduction
This section of the checklist addresses Section 6 which sets out requirements for
presenting the changes in an entity’s equity for a period, either in a statement of
changes in equity or, if specified conditions are met and an entity chooses, in a
statement of income and retained earnings.
N/A
Statement of changes in equity
An entity shall present a statement of changes in equity showing in the statement:
6.3(a) (a) total comprehensive income for the period, showing separately the total
amounts attributable to owners of the parent and to non-controlling interests.
6.3(b) (b) for each component of equity, the effects of retrospective application or
retrospective restatement recognised in accordance with Section 10
Accounting Policies, Estimates and Errors.
6.3(c) (c) for each component of equity, a reconciliation between the carrying
amount at the beginning and the end of the period, separately disclosing
changes resulting from:
(i) profit or loss
(ii) each item of other comprehensive income
(iii) the amounts of investments by, and dividends and other distributions
to, owners, showing separately issues of shares, treasury share
transactions, dividends and other distributions to owners, and changes in
ownership interests in subsidiaries that do not result in a loss of control
Statement of income and retained earnings

6.4 The statement of income and retained earnings presents an entity’s profit or loss
and changes in retained earnings for a reporting period. Paragraph 3.18 of IFRS for
SMEs Standard permits an entity to present a statement of income and retained
earnings in place of a statement of comprehensive income and a statement of
changes in equity if
the only changes to its equity during the periods for which financial statements are
presented arise from profit or loss, payment of dividends, corrections of prior period
errors, and changes in accounting policy.
Information to be presented in the statement of income and retained earnings
6.5 An entity shall present, in the statement of income and retained earnings, the
following items in addition to the information required by Section 5 Statement of
Comprehensive Income and Income Statement (See above):
6.5(a) (a) retained earnings at the beginning of the reporting period.
6.5(b) (b) dividends declared and paid or payable during the period.
6.5(c) (c) restatements of retained earnings for corrections of prior period errors.
6.5(d) (d) restatements of retained earnings for changes in accounting policy.
6.5(e) (e) retained earnings at the end of the reporting period.
Section 7 Statement of Cash Flows

Introduction
This section of the checklist addresses Section 7, which prescribes the information
that is to be presented in a statement of cash flows and how to present it. The
statement of cash flows provides information about the changes in cash and cash
equivalents of an entity for a reporting period, showing separately changes from
operating activities, investing activities and financing activities.
Reference Yes / No /
Presentation/disclosure requirement Comments
N/A
Information to be presented in the statement of cash flows
7.3 An entity shall present a statement of cash flows that presents cash flows for a
reporting period classified by:
Operating activities (pls see para 7.4 of section 7);
Investing activities (pls see para 7.5 of section 7); and
Financing activities (pls see para 7.6 of section 7).
Reporting cash flows from operating activities
An entity shall present cash flows from operating activities using either:
7.7 (a) (a) the indirect method, whereby profit or loss is adjusted for the effects of
non-cash transactions, any deferrals or accruals of past or future operating
cash receipts or payments, and items of income or expense associated with
investing or financing cash flows; or
7.7 (b) (b) the direct method, whereby major classes of gross cash receipts and gross
cash payments are disclosed.
Reporting cash flows from investing and financing activities
7.10 An entity shall present separately major classes of gross cash receipts and gross cash
payments arising from investing and financing activities. The aggregate cash flows
arising from acquisitions and from disposals of subsidiaries or other business units
shall be presented separately and classified as investing activities.
Interest and dividends

7.14 An entity shall present separately cash flows from interest and dividends received
and paid.
7.14 The entity shall classify cash flows consistently from period to period as operating,
investing or financing activities.
Interest paid and interest and dividends received
7.15 An entity may classify interest paid and interest and dividends received as operating
cash flows.
7.15 Alternatively, the entity may classify interest paid and interest and dividends
received as financing cash flows and investing cash flows respectively.
Dividend paid
7.16 An entity may classify dividends paid as a financing cash flow or operating cash flow.
Income tax
7.17 An entity shall present separately cash flows arising from income tax and shall
classify them as cash flows from operating activities unless they can be specifically
identified with financing and investing activities. When tax cash flows are allocated
over more than one class of activity, the entity shall disclose the total amount of
taxes paid.
Non-cash transactions
7.18 An entity shall exclude from the statement of cash flows investing and financing
transactions that do not require the use of cash or cash equivalents.
7.18 An entity shall disclose such transactions elsewhere in the financial statements in a
way that provides all the relevant information about those investing and financing
activities.
Components of cash and cash equivalents
7.2 Cash equivalents are short-term, highly liquid investments that are readily
convertible to known amounts of cash and that are subject to an insignificant risk of
changes in value. They are held to meet short-term cash commitments instead of
for investment or other purposes. Consequently, an investment normally qualifies as
a cash equivalent only when it has a short maturity of, say, three months or less
from the date of acquisition. Bank overdrafts are normally considered financing
activities similar to borrowings. However, if they are repayable on demand and form
an integral part of an entity’s cash management,
bank overdrafts are a component of cash and cash equivalents.
7.20 An entity shall disclose the components of cash and cash equivalents.
7.20 An entity shall present a reconciliation of the amounts presented in the statement
of cash flows to the equivalent items presented in the statement of financial
position. However, an entity is not required to present this reconciliation if the
amount of cash and cash equivalents presented in the statement of cash flows is
identical to the amount similarly described in the statement of financial position.
Other disclosures
7.21 An entity shall disclose, together with a commentary by management, the amount
of significant cash and cash equivalent balances held by the entity that are not
available for use by the entity.
Section 8 Notes to the Financial Statements

Introduction
This section includes the requirements setout in Section 8 of IFRS for SMEs Standard
related to the information that is to be presented in the notes to the financial
statements and how to present it.
Notes contain information in addition to that presented in the statement of financial
position, the statement of comprehensive income (if presented), the income
statement (if presented), the combined statement of income and retained earnings
(if presented), the statement of changes in equity (if presented) and the statement
of cash flows.
Notes provide narrative descriptions or disaggregations of items presented in those

statements and information about items that do not qualify for recognition in those
statements. In addition to the requirements of this section, nearly every other
section of this Standard requires disclosures that are normally presented in the
notes.

N/A
Structure of notes
The notes shall:
8.2(a) (a) present information about the basis of preparation of the financial
statements
and the specific accounting policies used, in accordance with paragraphs 8.5–
8.7 (see below);
8.2(b) (b) disclose the information required by this Standard that is not presented
elsewhere in the financial statements; and
8.2(c) (c) provide information that is not presented elsewhere in the financial
statements but is relevant to an understanding of any of them.
8.3 An entity shall, as far as practicable, present the notes in a systematic manner. An
entity shall cross-reference each item in the financial statements to any related
information in the notes.
Disclosure of accounting policies
An entity shall disclose the following in the summary of significant accounting
policies:
8.5(a) (a) the measurement basis (or bases) used in preparing the financial statements.
8.5(b) (b) the other accounting policies used that are relevant to an understanding of the
Information about judgements
8.6 An entity shall disclose, in the summary of significant accounting policies or other
notes, the judgements, apart from those involving estimations (see paragraph 8.7)
(see below), that management has made in the process of applying the entity’s
accounting policies and that have the most significant effect on the amounts
recognised in the financial statements.
Information about key sources of estimation uncertainty

8.7 An entity shall disclose in the notes information about the key assumptions
concerning the future, and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year.
8.7 In respect of those assets and liabilities, the notes shall include details of:
8.7(a) (a) their nature; and
8.7(b) (b) their carrying amount as at the end of the reporting period.
Section 9 Consolidated and Separate Financial Statements

Introduction
This section of the checklist includes the presentation and disclosure requirements
of Section 9 of IFRS for SMEs Standard. These specific requirements relate to the
consolidated, separate and combined financial statements.
N/A
Consolidated financial statements
Is the entity required to prepared consolidated financial statements (Pls consider
the Companies Act 2017 and IFRS for SMEs (para 9.2 to 9.9)
Has the entity prepared consolidated financial statements?
Are there any non controlling interests?
9.20 An entity shall present non-controlling interest in the consolidated statement of
financial position within equity, separately from the equity of the owners of the
parent, as required by paragraph 4.2(q).
9.21
An entity shall disclose non-controlling interest in the profit or loss of the group
separately in the statement of comprehensive income, as required by paragraph 5.6
(or in the income statement, if presented, as required by paragraph 5.7).
9.3 A
If a subsidiary is not consolidated if it is acquired and is held with the intention of
selling or disposing of it within one year from its acquisition date (i.e. the date on
which the acquirer obtains control of the acquiree). Such a subsidiary is accounted
for in accordance with the requirements in Section 11 Basic Financial Instruments as
for investments in paragraph 11.8(d), instead of in accordance with this section.
The parent shall also provide the disclosure in paragraph 9.23A.
9.3 C If a parent has no subsidiaries other than subsidiaries that are not required to be
consolidated in accordance with paragraphs 9.3A–9.3B, it shall not present
consolidated financial statements. However, the parent shall provide the disclosure
in paragraph 9.23A.
9.23 A
In addition to the disclosure requirements in Section 11 of IFRS for SMEs Standard, a
parent entity shall disclose the carrying amount of investments in subsidiaries that
are not consolidated (see paragraphs 9.3A–9.3C) at the reporting date, in total,
either in the statement of financial position or in the notes.
Disclosures in consolidated financial statements

The following disclosures shall be made in consolidated financial statements:
9.23(a) (a) the fact that the statements are consolidated financial statements.
9.23(b) (b) the basis for concluding that control exists when the parent does not own,
directly or indirectly through subsidiaries, more than half of the voting power.
9.23(c) (c) any difference in the reporting date of the financial statements of the
parent and its subsidiaries used in the preparation of the consolidated
9.23(d) (d) the nature and extent of any significant restrictions (e.g. resulting from
borrowing arrangements or regulatory requirements) on the ability of
subsidiaries to transfer funds to the parent in the form of cash dividends or to
repay loans.
Separate financial statements
Has the entity prepared separate financial statements?
When a parent, an investor in an associate, or a venturer with an interest in a
jointly controlled entity prepares separate financial statements, those separate
financial statements shall disclose:
9.27(a) (a) that the statements are separate financial statements, and
9.27(b) (b) a description of the methods used to account for the investments in
subsidiaries, jointly controlled entities and associates, and shall identify the
consolidated financial statements or other primary financial statements to which
they relate, and
9.27 shall identify the consolidated financial statements or other primary financial
statements to which they relate.
Combined financial statements
The combined financial statements shall disclose the following:
9.30(a) (a) the fact that the financial statements are combined financial statements.
9.30(b) (b) the reason why combined financial statements are prepared.
9.30(c) (c) the basis for determining which entities are included in the combined
9.30(d) (d) the basis of preparation of the combined financial statements.
9.30(e) (e) the related party disclosures required by Section 33 Related Party Disclosures.
Section 10 Accounting Policies, Estimates and Errors

Introduction
This section of the checklist includes the presentation and disclosure requirements
of Section 10 of IFRS for SMEs Standard. Section 10 provides guidance for selecting
and applying the accounting policies used in preparing financial statements. It also
covers changes in accounting estimates and corrections of errors in prior period
N/A
Disclosure of changes in accounting policies
10.13 When an amendment to this Standard (IFRS for SMEs) has an effect on the current
period or any prior period, or might have an effect on future periods, an entity shall
disclose the following:
10.13(a) (a) the nature of the change in accounting policy.
10.13(b) (b) for the current period and each prior period presented, to the extent
practicable, the amount of the adjustment for each financial statement line
item affected.
10.13(c) (c) the amount of the adjustment relating to periods before those presented,
to the extent practicable.
10.13(d) (d) an explanation if it is impracticable to determine the amounts to be
disclosed in (b) or (c) above.
10.14 When a voluntary change in accounting policy has an effect on the current period or
any prior period, an entity shall disclose the following:
10.14(a) (a) the nature of the change in accounting policy.
10.14(b) (b) the reasons why applying the new accounting policy provides reliable and
more relevant information.
10.14(c) (c) to the extent practicable, the amount of the adjustment for each financial
statement line item affected, shown separately:
(i) for the current period;
(ii) for each prior period presented; and
(iii) in the aggregate for periods before those presented.
10.14(d) (d) an explanation if it is impracticable to determine the amounts to be
disclosed in (c) above.
Disclosing the effect of a change in accounting estimate
10.18 An entity shall disclose the nature of any change in an accounting estimate and the
effect of the change on assets, liabilities, income and expense for the current
period.
10.18 If it is practicable for the entity to estimate the effect of the change in one or
more future periods, the entity shall disclose those estimates.
Disclosure of prior period errors
An entity shall disclose the following about prior period errors:
10.23(a) (a) the nature of the prior period error.
10.23(b) (b) for each prior period presented, to the extent practicable, the amount of
the correction for each financial statement line item affected.
10.23(c) (c) to the extent practicable, the amount of the correction at the beginning of
the earliest prior period presented.
10.23(d) (d) an explanation if it is not practicable to determine the amounts to be
disclosed in (b) or (c) above.
Section 11 Basic Financial Instruments

Introduction
This section of the checklist addresses the presentation and disclosure requirements
of Section 11. (Section 11 Basic Financial Instruments and Section 12 Other
Financial Instruments Issues, together deal with the recognition, derecognition,
measurement and disclosure of financial instruments (financial assets and financial
liabilities. Section 11 applies to basic financial instruments and is relevant to all
entities. Section 12 applies to other, more complex financial instruments and
transactions.)
If an entity enters into only basic financial instrument transactions then Section 12
is not applicable. However, even entities with only basic financial instruments shall
consider the scope of Section 12 to ensure they are exempt.
Accounting policy choice - In accordance with IFRS for SMEs (para 11.2) an entity
shall choose to apply either:
- the requirements of both Sections 11 and 12 in full; or
- the recognition and measurement requirements of IAS 39 Financial Instruments:
Recognition and Measurement1 and the disclosure requirements of Sections 11 and
12 of IFRS for SMEs Standard.
N/A
Basic Financial Instruments
Disclosure of accounting policies for financial instruments
11.4 An entity shall disclose (in accordance with paragraph 8.5) in the summary of
significant accounting policies, the measurement basis (or bases) used for financial
instruments and the other accounting policies used for financial instruments that
are relevant to an understanding of the financial statements.
Statement of financial position – categories of financial assets and financial

liabilities
11.41 An entity shall disclose the carrying amounts of each of the following categories of
financial assets and financial liabilities at the reporting date, in total, either in the
statement of financial position or in the notes:
11.41(a) (a) financial assets measured at fair value through profit or loss.
11.41(b) (b) financial assets that are debt instruments measured at amortized cost.
11.41(c) (c) financial assets that are equity instruments measured at cost less
impairment.
11.41(d) (d) financial liabilities measured at fair value through profit or loss.
11.41(e) (e) financial liabilities measured at amortized cost.
11.41(f) (f) loan commitments measured at cost less impairment.
Information about financial instruments
11.42
An entity shall disclose information that enables users of its financial statements to
evaluate the significance of financial instruments for its financial position and
performance. For example, for long-term debt such information would normally
include the terms and conditions of the debt instrument (such as interest rate,
maturity, repayment schedule, and restrictions that the debt instrument imposes
on the entity).
Financial Instruments measured at Fair value
11.43 For all financial assets and financial liabilities measured at fair value, the entity
shall disclose the basis for determining fair value, e.g. quoted market price in an
active market or a valuation technique. When a valuation technique is used, the
entity shall disclose the assumptions applied in determining fair value for each class
of financial assets or financial liabilities. For example, if applicable, an entity
discloses information about the assumptions relating to prepayment rates, rates of
estimated credit losses, and interest rates or discount rates.
11.44 If a reliable measure of fair value is no longer available for an equity instrument
measured at fair value through profit or loss, the entity shall disclose that fact.
Items of income, expense, gains or losses

11.48 An entity shall disclose the following items of income, expense, gains or losses:
11.48(a) (a) income, expense, gains or losses, including changes in fair value, recognised
on:
(i) financial assets measured at fair value through profit or loss.
(ii) financial liabilities measured at fair value through profit or loss.
(iii) financial assets measured at amortized cost.
(iv) financial liabilities measured at amortized cost.
11.48(b) (b) total interest income and total interest expense (calculated using the
effective interest method) for financial assets or financial liabilities that are not
measured at fair value through profit or loss.
11.48(c) (c) the amount of any impairment loss for each class of financial asset.
Derecognition
11.45 If an entity has transferred financial assets to another party in a transaction that
does not qualify for derecognition), the entity shall disclose the following for each
class of such financial assets:
11.45(a) (a) the nature of the assets.
11.45(b) (b) the nature of the risks and rewards of ownership to which the entity
remains exposed.
11.45(c) (c) the carrying amounts of the assets and of any associated liabilities that the
entity continues to recognise.
Collateral
11.46 When an entity has pledged financial assets as collateral for liabilities or contingent
liabilities, it shall disclose the following:
11.46(a) (a) the carrying amount of the financial assets pledged as collateral.
11.46(b) (b) the terms and conditions relating to its pledge.
Defaults and breaches on loans payable
11.47 For loans payable recognised at the reporting date for which there is a breach of
terms or default of principal, interest, sinking fund, or redemption terms that has
not been remedied by the reporting date, an entity shall disclose the following:
11.47(a) (a) details of that breach or default.

11.47(b) (b) the carrying amount of the related loans payable at the reporting date.
11.47(c) (c) whether the breach or default was remedied, or the terms of the loans payable
were renegotiated, before the financial statements were authorised for issue.
Section 12 Other Financial Instruments Issues

Introduction
of Section 12. Section 11 Basic Financial Instruments and Section 12 Other Financial
Instruments Issues together deal with recognising, derecognising, measuring and
disclosing financial instruments (financial assets and financial liabilities). Section 11
applies to basic financial instruments and is relevant to all entities. Section 12
applies to other, more complex financial instruments and transactions. If an entity
enters into only basic financial instrument transactions then Section 12 is not
applicable. However, even entities with only basic financial instruments shall
consider the scope of Section 12 to ensure they are exempt.
N/A
Other Financial Instruments Issues
12.26 An entity applying this section shall make all of the disclosures required in Section
11 incorporating in those disclosures financial instruments that are within the scope
of this section as well as those within the scope of Section 11. In addition, if the
entity uses hedge accounting, it shall make the additional disclosures (see below).
Hedge accounting disclosures

12.27 An entity shall disclose the following separately for hedges of each of the four types
of risks described in paragraph 12.17:
12.27(a) (a) a description of the hedge.
12.27(b) (b) a description of the financial instruments designated as hedging
instruments and their fair values at the reporting date.
12.27(c) (c) the nature of the risks being hedged, including a description of the hedged
item.
Hedged risk - Fixed interest rate risk or commodity price risk
12.28 If an entity uses hedge accounting for a hedge of fixed interest rate risk or
commodity price risk of a commodity held it shall disclose the following:
12.28(a) (a) the amount of the change in fair value of the hedging instrument recognised in
profit or loss.
12.28(b) (b) the amount of the change in fair value of the hedged item recognised in profit or
loss.
Hedge risk - Variable interest rate risk, foreign exchange risk, commodity price
risk
12.29 If an entity uses hedge accounting for a hedge of variable interest rate risk, foreign
exchange risk, commodity price risk in a firm commitment or highly probable
forecast transaction, or a net investment in a foreign operation it shall disclose the
following:
12.29(a) (a) the periods when the cash flows are expected to occur and when they are
expected to affect profit or loss.
12.29(b) (b) a description of any forecast transaction for which hedge accounting had
previously been used, but which is no longer expected to occur.
12.29(c) (c) the amount of the change in fair value of the hedging instrument that was
recognised in other comprehensive income during the period.
12.29(d) (d) the amount that was reclassified from other comprehensive income to profit or
loss for the period.
12.29(e) (e) the amount of any excess of the fair value of the hedging instrument over the
change in the fair value of the expected cash flows that was recognised in profit or
loss.
Section 13 Inventories
Introduction
of Section 13, which prescribes the accounting treatment for inventories. The
primary issues are: the costs that may be capitalized as an asset, the subsequent
recognition as an expense, including the write-down to net realizable value, and
determining the cost formulas to be used in assigning costs to inventories.
N/A
13.22 An entity shall disclose the following:
Accounting policy
13.22 (a) The accounting policies adopted in measuring inventories, including the cost
formula used.
Carrying amount and classifications
13.22 (b) The total carrying amount of inventories and the carrying amount in classifications
appropriate to the entity.
Expense for the year
13.22 (c) The amount of inventories recognised as an expense during the period.
Impairment loss
13.22 (d) Impairment losses recognised or reversed in profit or loss in accordance with Section
27.
Pledged inventories
13.22 (e) The total carrying amount of inventories pledged as security for liabilities.
Section 14 Investments in Associates

Introduction
of Section 14, which prescribes the accounting for investments in associates:
1) In the consolidated financial statements of a parent (Paragraph 9.26 establishes
the requirements for accounting for associates in separate financial statements of a
parent); and
2) In the financial statements of an investor that is not a parent but that has an
investment in one or more associates.
N/A
Presentation
14.11 An investor shall classify investments in associates as non-current assets.
General Disclosures
14.12 An investor in an associate shall disclose the following:
Accounting policy
14.12 (a) Accounting policy for investments in associates. [Refer: paragraph 9.27 for
disclosures in separate financial statements, if prepared]
Carrying amount
14.12 (b) The carrying amount of investments in associates.
Specific Disclosures
Investments in associates accounted for by the cost model
14.13 For investments in associates accounted for by the cost model, an investor shall
disclose the amount of dividends and other distributions recognised as income.
Investments in associates accounted for by the equity method

14.12 (c) The fair value of investments in associates accounted for using the equity method
for which there are published price quotations.
14.14 For investments in associates accounted for by the equity method, an investor shall
disclose separately its share of the profit or loss of such associates and its share of
any discontinued operations of such associates.
Investments in associates accounted for by the fair value model
14.15 For investments in associates accounted for by the fair value model, an investor
shall make the disclosures required by paragraphs 11.41–11.44.
Section 15 Investments in Joint Ventures
Introduction
of Section 15, which prescribes the accounting for investments in joint ventures:
- In the consolidated financial statements of a parent (Paragraph 9.26 establishes

the requirements for a venturer’s interest in a joint venture in separate financial
statements of a parent); and
- In the financial statements of an investor that is not a parent but that has a
venturer’s interest in one or more joint ventures.
N/A
General disclosures
An investor in a joint venture shall disclose:
Accounting policy
15.19 (a) The accounting policy it uses for recognising its interests in jointly controlled
entities.
Carrying amount
15.19 (b) The carrying amount of investments in jointly controlled entities.
Commitments
15.19 (d) The aggregate amount of its commitments relating to joint ventures, including its
share in the capital commitments that have been incurred jointly with other
venturers, as well as its share of the capital commitments of the joint ventures
themselves.
Jointly controlled entities accounted for by the equity method
15.19 (c) The fair value of investments in jointly controlled entities accounted for using the
equity method for which there are published price quotations.
15.20 For jointly controlled entities accounted for in accordance with the equity method,
the venturer shall disclose separately its share of the profit or loss of such jointly
controlled entities and its share of any discontinued operations of such jointly
controlled entities.
Investments in jointly controlled entities accounted for by the fair value model
15.21 For jointly controlled entities accounted for in accordance with the fair value
model, the venturer shall make the disclosures required by paragraphs 11.41–11.44.
Section 16 Investment Property

Introduction
of Section 16, which prescribes the accounting treatment for the recognition and
measurement for investments in land or buildings that meet the definition of
investment property and some property interests held by a lessee under an
operating lease that are treated like investment property and the related disclosure
requirements. Investment property whose fair value can be measured reliably
without undue cost or effort on an ongoing basis is accounted for at fair value
through profit or loss. All other investment property is accounted for as property,
plant and equipment using the cost-depreciation-impairment model in Section 17
Property, Plant and Equipment and remains within the scope of Section 17 unless a
reliable measure of fair value becomes available and it is expected that fair value
will be reliably measurable on an ongoing basis.
N/A
General disclosures
16.10 An entity shall disclose the following for all investment property accounted for at
fair value through profit or loss:
Basis of determination of fair value
16.10(a) The methods and significant assumptions applied in determining the fair value of
investment property.
16.10(b) The extent to which the fair value of investment property (as measured or disclosed
in the financial statements) is based on a valuation by an independent valuer who
holds a recognised and relevant professional qualification and has recent experience
in the location and class of the investment property being valued.
16.10(b) If there has been no such valuation, that fact shall be disclosed.
Reconciliation between the carrying amounts
16.10(e) A reconciliation between the carrying amounts of investment property at the
beginning and end of the period, showing separately:
(i) additions, disclosing separately those additions resulting from acquisitions
through business combinations.
(ii) net gains or losses from fair value adjustments.
(iii) transfers to property, plant and equipment when a reliable measure of fair
value is no longer available without undue cost or effort.
(iv) transfers to and from inventories and owner-occupied property.
(v) other changes.
16.10 This reconciliation need not be presented for prior periods.
Restrictions
16.10(c) The existence and amounts of restrictions on the realisability of investment
property or the remittance of income and proceeds of disposal.
Contractual obligations / commitments
16.10(d) Contractual obligations to purchase, construct or develop investment property or for
repairs, maintenance or enhancements.
Investment property whose fair value could not be measured reliably without undue
cost or effort on an ongoing basis
16.1 The entity accounted for investment property as property, plant and equipment
using the cost-depreciation-impairment model in Section 17 Property, Plant and
Equipment.
Lessor (Owner) of investment property
16.11 The owner of an investment property provides lessors’ disclosures about leases into
which it has entered (In accordance with Section 20 of IFRS for SMEs Standard).
Lessee of investment property

16.11 An entity that holds an investment property under a finance lease or operating lease
provides lessees disclosures for finance leases and lessors’ disclosures for any
operating leases into which it has entered.
Section 17 Property, Plant and Equipment

Introduction
of Section 17, which prescribes the accounting treatment for property, plant and
equipment and investment property whose fair value cannot be measured reliably
without undue cost or effort. The principal issues in accounting for property, plant
and equipment are: the recognition of assets, the determination of their carrying
amounts and the recognition of depreciation charges and impairment losses.
N/A
General disclosures
17.31 An entity shall disclose the following for each class of property, plant and
equipment according to the classifications that was deemed appropriate to the
entity:
Measurement bases, depreciation method and rates
17.31 (a) The measurement bases used for determining the gross carrying amount.
17.31 (b) The depreciation methods used.
17.31(c) The useful lives or the depreciation rates used.
Gross carrying amount and reconciliation of carrying amount
17.31(d) The gross carrying amount and the accumulated depreciation (aggregated with
accumulated impairment losses) at the beginning and end of the reporting period.
17.31(e) A reconciliation of the carrying amount at the beginning and end of the reporting
period showing separately:
(i) additions.
(ii) disposals.
(iii) acquisitions through business combinations.
(iv) transfers to investment property if a reliable measure of fair value
becomes available.
(v) impairment losses recognised or reversed in profit or loss in
accordance with Section 27.
(vi) depreciation.
(vii) other changes.
This reconciliation need not be presented for prior periods.
Restrictred or pledged property, plant and equipment
17.32 (a) The entity shall also disclose the existence and carrying amounts of property, plant
and equipment:
- to which the entity has restricted title; or
- that is pledged as security for liabilities.
Contractual commitments
17.32 (b) The entity shall also disclose the amount of contractual commitments for the
acquisition of property, plant and equipment.
Revalaution of property, plant and equipment
17.33 If items of property, plant and equipment are stated at revalued amounts, an entity
shall disclose the following:
17.33 (a) The effective date of the revaluation;
17.33 (b) Whether an independent valuer was involved;
17.33 (c) The methods and significant assumptions applied in estimating the items’ fair
values;
17.33 (d) For each revalued class of property, plant and equipment, the carrying amount that
would have been recognised had the assets been carried under the cost model; and
17.33 (e) The revaluation surplus, indicating the change for the period and any restrictions on
the distribution of the balance to shareholders.
Section 18 Intangible Assets other than Goodwill

Introduction
of Section 18, which prescribes the accounting treatment for all intangible assets
other than goodwill (see Section 19 Business Combinations and Goodwill) and
intangible assets held by an entity for sale in the ordinary course of business (see
Section 13 Inventories and Section 23 Revenue). The principal issues are when an
intangible asset may be recognised, as well as the determination of the subsequent
carrying amount. The Standard prescribes certain criteria that should be met before
an intangible asset may be recognised.
N/A
General disclosures
An entity shall disclose the following for each class of intangible assets:
Amortization method and rates
18.27 (a) The useful lives or the amortization rates used.
18.27 (b) The amortization methods used.
Carrying amount and reconciliation of carrying amount
18.27 (c) The gross carrying amount and any accumulated amortization (aggregated with
accumulated impairment losses) at the beginning and end of the reporting period.
18.27 (e) A reconciliation of the carrying amount at the beginning and end of the reporting
period showing separately:
(i) additions.
(ii) disposals.
(iii) acquisitions through business combinations.
(iv) amortization.
(v) impairment losses.
(vi) other changes.
Amortization expense
18.27 (d) The line item(s) in the statement of comprehensive income (and in the income
statement, if presented) in which any amortization of intangible assets is included.
An entity shall also disclose:
Material intangible
18.28(a) A description, the carrying amount and remaining amortization period of any
individual intangible asset that is material to the entity’s financial statements.
Acquired by way of government grant

18.28(b) For intangible assets acquired by way of a government grant and initially recognised
at fair value:
(i) the fair value initially recognised for these assets, and
(ii) their carrying amounts.
Restrictions
18.28(c) The existence and carrying amounts of intangible assets to which the entity has
restricted title or that are pledged as security for liabilities.
Contractual obligations / commitments
18.28(d) The amount of contractual commitments for the acquisition of intangible assets.
Research and development

18.29 An entity shall disclose the aggregate amount of research and development
expenditure recognised as an expense during the period (i.e. the amount of
expenditure incurred internally on research and development that has not been
capitalized as part of the cost of another asset that meets the recognition criteria in
this IFRS).
Section 19 Business Combinations and Goodwill

Introduction
of Section 19, which applies to accounting for business combinations. It provides
guidance on identifying the acquirer, measuring the cost of the business
combination, and allocating that cost to the assets acquired and liabilities and
provisions for contingent liabilities assumed. It also addresses accounting for
goodwill both at the time of a business combination and subsequently.
N/A
For business combination(s) effected during the reporting period
For each business combination that was effected during the period, the acquirer
shall disclose the following:
Particulars of business combination arrangement
19.25(a) (a) the names and descriptions of the combining entities or businesses.
19.25(b) (b) the acquisition date.
19.25(c) (c) the percentage of voting equity instruments acquired.
Cost of the business combination and description of cost components
19.25(d) (d) the cost of the combination and a description of the components of that cost
(such as cash, equity instruments and debt instruments).
Amounts recognised for acquiree's assets, liabilities and contingent liabilities
19.25(e) (e) the amounts recognised at the acquisition date for each class of the
acquiree’s assets, liabilities and contingent liabilities, including goodwill.
Excess of acquirer's interest over the cost of the business combination
19.25(f) (f) the amount of any excess recognised in profit or loss, and the line item in the
statement of comprehensive income (and in the income statement, if presented)
in which the excess is recognised.
Qualitative description of factors making up the goodwill
19.25(g) (g) a qualitative description of the factors that make up the goodwill recognised,
such as expected synergies from combining operations of the acquiree and the
acquirer, or intangible assets or other items not recognised in accordance with
paragraph 19.15.
For all business combinations

Reconciliation of carrying amount of goodwill
An acquirer shall disclose a reconciliation of the carrying amount of goodwill at the
beginning and end of the reporting period, showing separately:
19.26(a) (a) changes arising from new business combinations.
19.26(b) (b) impairment losses.
19.26(c) (c) disposals of previously acquired businesses.
19.26(d) (d) other changes.
Section 20 Leases
Introduction
of Section 20, which deals with the accounting for leases from both the perspective
of the lessee and lessor. This section applies to agreements that transfer the right
to use assets. Some arrangements, such as outsourcing arrangements,
telecommunication contracts that provide rights to capacity, and take-or-pay
contracts, do not take the legal form of a lease but convey rights to use assets in
return for payments. Such arrangements are in substance leases of assets, and they
should be accounted for under this section.
N/A
Financial statements of lessees
Finance leases
A lessee shall make the following disclosures for finance leases:
Carrying amount
20.13(a) (a) for each class of asset, the net carrying amount at the end of the reporting
period.
Future minimum lease payments with periodic breakup
20.13(b) (b) the total of future minimum lease payments at the end of the reporting
period, 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.
General description of significant leasing arrangements
20.13(c) (c) a general description of the lessee’s significant leasing arrangements
including, for example, information about contingent rent, renewal or purchase
options and escalation clauses, subleases, and restrictions imposed by lease
arrangements.
Disclosure requirements of other standards for leased assets

20.14 In addition, the requirements for disclosure about assets in accordance with
Sections 17, 18, 27 and 34 apply to lessees for assets leased under finance leases.
Operating leases
A lessee shall make the following disclosures for operating leases:
20.16(a) (a) the total of future minimum lease payments under non-cancellable operating
leases for each of the following periods:
Expense recognised
20.16(b) (b) lease payments recognised as an expense.
20.16(c) (c) a general description of the lessee’s significant leasing arrangements
arrangements.
Financial statements of lessors

Finance leases
A lessor shall make the following disclosures for finance leases:
Reconciliation of gross investment in lease and minimum lease payment
20.23(a) (a) a reconciliation between the gross investment in the lease at the end of the
reporting period, and the present value of minimum lease payments receivable at
the end of the reporting period. In addition, a lessor shall disclose the gross
investment in the lease and the present value of minimum lease payments
receivable at the end of the reporting period, for each of the following periods:

Unearned finance income and unguaranteed residual value
20.23(b) (b) unearned finance income.
20.23(c) (c) the unguaranteed residual values accruing to the benefit of the lessor.
Unearned finance income and unguaranteed residual value
20.23(d) (d) the accumulated allowance for uncollectible minimum lease payments
receivable.
20.23(e) (e) contingent rents recognised as income in the period.
20.23(f) (f) a general description of the lessor’s significant leasing arrangements,
arrangements.
Operating leases
A lessor shall disclose the following for operating leases:
20.30(a) (a) the future minimum lease payments under non-cancellable operating leases
for each of the following periods:
(i) not later than one year; and
Contingent rents
20.30(b) (b) total contingent rents recognised as income.
20.30(c) (c) a general description of the lessor’s significant leasing arrangements,
options and escalation clauses, and restrictions imposed by lease arrangements.
Disclosure requirements of other standards for leased assets
20.31 In addition, the requirements for disclosure about assets in accordance with
Sections 17, 18, 27 and 34 apply to lessors for assets provided under operating
leases.
Sale and leaseback transactions
Applicability of lease disclosures to sale and leaseback transations
20.35 Disclosure requirements for lessees and lessors apply equally to sale and leaseback
transactions. The required description of significant leasing arrangements includes
description of unique or unusual provisions of the agreement or terms of the sale
and leaseback transactions.
Section 21 Provisions and Contingencies
Introduction
of Section 21, which prescribes the accounting for provisions (including provisions
for restructuring and onerous contracts), contingent liabilities and contingent
assets.
N/A
Reimbursements
Recognition of reimbursements as a separate asset
21.9 When some or all of the amount required to settle a provision may be reimbursed by
another party (e.g. through an insurance claim), the entity shall recognise the
reimbursement as a separate asset.
Presentation of reimbursement asset and income

21.9 The reimbursement receivable shall be presented in the statement of financial
position as an asset and shall not be offset against the provision. In the statement of
comprehensive income, the entity may offset any reimbursement from another
party against the expense relating to the provision.
Provisions
For each class of provision, an entity shall disclose all of the following:
Reconciliation
21.14(a) (a) a reconciliation showing
(i) the carrying amount at the beginning and end of the period;
(ii) additions during the period, including adjustments that result from changes
in measuring the discounted amount;
(iii) amounts charged against the provision during the period; and
(iv) unused amounts reversed during the period.
Descriptive disclosures
21.14(b) (b) a brief description of the nature of the obligation and the expected amount
and timing of any resulting payments.
21.14(c) (c) an indication of the uncertainties about the amount or timing of those
outflows.
Expected reimbursement
21.14(d) (d) the amount of any expected reimbursement, stating the amount of any asset
that has been recognised for that expected reimbursement.
21.14 Comparative information for prior periods is not required.
Contingent liabilities
Unless the possibility of any outflow of resources in settlement is remote, an entity
shall disclose, for each class of contingent liability at the reporting date, a brief
description of the nature of the contingent liability and, when practicable:
Estimate of financial effect

21.15(a) (a) an estimate of its financial effect, measured in accordance with paragraphs
21.7–21.11;
Indication of uncertainities
21.15(b) (b) an indication of the uncertainties relating to the amount or timing of any
outflow; and
Expected reimbursement
21.15(c) (c) the possibility of any reimbursement.
21.15 If it is impracticable to make one or more of these disclosures, that fact shall be
stated.
Contingent assets
21.16 If an inflow of economic benefits is probable (more likely than not) but not virtually
certain, an entity shall disclose a description of the nature of the contingent assets
at the end of the reporting period, and, when practicable without undue cost or
effort, an estimate of their financial effect.
21.16 If it is impracticable to make this disclosure, that fact shall be stated.
Prejudicial disclosures
21.17 In extremely rare cases, disclosure of some or all of the information required by
paragraphs 21.14–21.16 can be expected to prejudice seriously the position of the
entity in a dispute with other parties on the subject matter of the provision,
contingent liability or contingent asset. In such cases, an entity need not disclose
the information, but shall disclose the general nature of the dispute, together with
the fact that, and reason why, the information has not been disclosed
Section 23 Revenue
Introduction
of Section 23. Revenue is income that arises in the course of the ordinary activities
of an entity and is referred to by a variety of different names including sales, fees,
construction contracts, interest, dividends and royalties. The primary issue in
accounting for revenue is determining when to recognise revenue. A construction
contract is defined as a contract specifically negotiated for the construction of an
asset or a combination of assets that are closely interrelated or interdependent in
terms of their design, technology and function or their ultimate purpose or use. The
term contractor is not defined.
N/A
General disclosures about revenue
An entity shall disclose:
Accounting policy for revenue recognition
23.30(a) (a) the accounting policies adopted for the recognition of revenue, including the
methods adopted to determine the stage of completion of transactions involving
the rendering of services.
Category wise disclosure of revenue recognised

23.30(b) (b) the amount of each category of revenue recognised during the period,
showing separately, at a minimum, revenue arising from:
(i) the sale of goods.
(ii) the rendering of services.
(iii) interest.
(iv) royalties.
(v) dividends.
(vi) commissions.
(vii) government grants.
(viii) any other significant types of revenue.
Disclosures relating to revenue from construction contracts
An entity shall disclose:
Contract revenue recognised
23.31(a) (a) the amount of contract revenue recognised as revenue in the period;
Methods for determination of contract revenue
23.31(b) (b) the methods used to determine the contract revenue recognised in the
period; and
Methods for determination of stage of completion
23.31(c) (c) the methods used to determine the stage of completion of contracts in
progress.
Presentation in the statement of financial position
An entity shall present:
23.32(a) (a) the gross amount due from customers for contract work, as an asset.
23.32(b) (b) the gross amount due to customers for contract work, as a liability.
Section 24 Government Grants

Introduction
of Section 24. The Section distinguishes between government grants (for which it
prescribes the accounting treatment) and government assistance (which cannot
reasonably have a value placed on it, but may have a significant impact on the
entity and, therefore, should be disclosed).
N/A
An entity shall disclose the following about government grants:

Nature and amounts of government grants
24.6 (a) The nature and amounts of government grants recognised in the financial
statements.
Unfulfilled conditions and other contingencies
24.6 (b) Unfulfilled conditions and other contingencies attaching to government grants that
have not been recognised in income.
Indication of other forms of government assistance
24.6 (c) An indication of other forms of government assistance from which the entity has
directly benefited.
Section 25 Borrowing Costs

Introduction
of Section 25, which prescribes the accounting treatment for borrowing costs. This
section spesifies that an entity shall recognise all borrowing costs as an expense in
profit or loss in the period in which they are incurred.
N/A
Disclosures required by other standards
25.3 Paragraph 5.5(b) of IFRS for SMEs Standard requires disclosure of finance costs.
Paragraph 11.48(b) requires disclosure of total interest expense (using the effective
interest method) for financial liabilities that are not at fair value through profit or
loss. This section does not require any additional disclosure.
Section 26 Share-based Payment
Introduction
of Section 26, which prescribes the accounting for transactions in which the
consideration paid by the entity for goods or services is linked, either directly or
indirectly, to the entity’s equity securities or to equity instruments of another
entity in the same group. The principal issues relate to the measurement of the
share-based payment transaction and the subsequent expensing thereof.
N/A
General disclosures
Nature and extent of share-based payment arrangements
26.18 The entity shall disclose information that enables users of the financial statements
to understand the nature and extent of share-based payment arrangements that
existed during the period.
The entity shall disclose the following (at a minimum):
Description of each type of share-based payment arrangements
26.18(a) (a) a description of each type of share-based payment arrangement that
existed at any time during the period, including the general terms and
conditions of each arrangement,
Did the entity have any share options granted under a share-based payment
transaction?
Specific disclosures
The entity shall disclose the following (at a minimum):
Number and weighted average exercise prices of share options
26.18(b) (b) the number and weighted average exercise prices of share options for each
of the following groups of options:
(i) outstanding at the beginning of the period.
(ii) granted during the period.
(iii) forfeited during the period.
(iv) exercised during the period.
(v) expired during the period.
(vi) outstanding at the end of the period.
(vii) exercisable at the end of the period.
Measurement of equity-settled share-based payment transactions
26.19 For equity-settled share-based payment arrangements, an entity shall disclose
information about how it measured the fair value of goods or services received or
the value of the equity instruments granted. If a valuation methodology was used,
the entity shall disclose the method and its reason for choosing it.
Measurement of cash-settled share-based payment transactions

26.2 For cash-settled share-based payment arrangements, an entity shall disclose
information about how the liability was measured.
Modifications in share-based payment arrangements
26.21 For share-based payment arrangements that were modified during the period, an
entity shall disclose an explanation of those modifications.
Allocation of share-based payment to a group entity
26.22 The entity shall disclose the fact that it recognises and measures its share-based
payment expense on the basis of a reasonable allocation of the expense recognised
for the group and, the basis for the allocation.
An entity shall disclose the following information about the effect of share-based
payment transactions on the entity’s profit or loss for the period and on its financial
position:
Effect of share-based payment transactions on the statement of comprehensive income
26.23(a) (a) the total expense recognised in profit or loss for the period.
Effect of share-based payment transactions on the statement of financial position
26.23(b) (b) the total carrying amount at the end of the period for liabilities arising from
share-based payment transactions.
Section 27 Impairment of Assets
Introduction
of Section 27. The objective of this Section is to ensure that assets are not carried
at an amount that is greater than their recoverable amount. If an asset is carried at
more than its recoverable amount, the asset is described as impaired and Section 27
requires the entity to recognise an impairment loss.
The principal issues are: how to determine whether impairment exists, how to
recognise an impairment loss and when an entity should reverse an impairment loss.
N/A
Disclosures
An entity shall disclose the following for each class of assets (see below):
Amount of impairment losses recognised
27.32(a) (a) the amount of impairment losses recognised in profit or loss during the period
and the line item(s) in the statement of comprehensive income (and in the
income statement, if presented) in which those impairment losses are included.
Amount of reversals of impairment losses recognised

27.32(b) (b) the amount of reversals of impairment losses recognised in profit or loss
during the period and the line item(s) in the statement of comprehensive income
(and in the income statement, if presented) in which those impairment losses are
reversed.
Disclosures by class of assets

An entity shall disclose the information required above for each of the following
classes of asset:
27.33(a) (a) inventories.
27.33(b) (b) property, plant and equipment (including investment property accounted for
by the cost method).
27.33(c) (c) goodwill.
27.33(d) (d) intangible assets other than goodwill.
27.33(e) (e) investments in associates.
27.33(f) (f) investments in joint ventures.
Section 28 Employee Benefits
Introduction
of Section 28, which prescribes the accounting for employee benefits. The principal
issues relate to the determination of employee benefit liabilities, assets and
expenses for short-term and long-term employee benefits.
N/A
Short-term employee benefits
Disclosure requirements of other standards
28.39 Although Section 28 does not require specific disclosures about short-term employee
benefits, other section may require disclosures (e.g. Section 33 Related Party
Disclosures requires an entity to disclose information about employee benefits for
key management personnel).
Post-employment benefits – Defined contribution plans

Expense recognised for defined contribution plan
28.4 An entity shall disclose the amount recognised in profit or loss as an expense for
defined contribution plans.
Defined benefit multi-employer plan treated as defined contribution plan
28.4 If an entity treats a defined benefit multi-employer plan as a defined contribution
plan because sufficient information is not available to use defined benefit
accounting it shall:
1) disclose the fact that it is a defined benefit plan and
2) the reason why it is being accounted for as a defined contribution plan, and
3) any available information about the plan’s surplus or deficit and the implications,
if any, for the entity.
Post-employment benefits - Defined benefit plans

An entity shall disclose the following information about defined benefit plans
(except for any defined multi-employer benefit plans that are accounted for as a
defined contribution plans in accordance with paragraph 28.11, for which the
disclosures in paragraph 28.40 apply instead (see above)).
If an entity has more than one defined benefit plan, these disclosures may be made
in total, separately for each plan, or in such groupings as are considered to be the
most useful:
General decription and funding policy

28.41(a) (a) a general description of the type of plan, including funding policy.
Accounting policy for actuarial gains and losses and amount recognised
28.41(b) (b) the entity’s accounting policy for recognising actuarial gains and losses
(either in profit or loss or as an item of other comprehensive income) and the
amount of actuarial gains and losses recognised during the period.
Narrative explanation of the simplifications used
28.41(c) (c) a narrative explanation if the entity uses any of the simplifications in
paragraph 28.19 in measuring its defined benefit obligation.
Date of most recent actuarial valuation and adjustments for valuation date other
than reporting date
28.41(d) (d) the date of the most recent comprehensive actuarial valuation and, if it was
not as of the reporting date, a description of the adjustments that were made to
measure the defined benefit obligation at the reporting date.
Reconciliation of defined benefit obligation

28.41(e) (e) a reconciliation of opening and closing balances of the defined benefit
obligation showing separately benefits paid and all other changes.
Reconciliation of fair value of plan assets
28.41(f) (f) a reconciliation of the opening and closing balances of the fair value of plan
assets and of the opening and closing balances of any reimbursement right
recognised as an asset, showing separately, if applicable:
(i) contributions;
(ii) benefits paid; and
(iii) other changes in plan assets.
Break up of cost of defined benefit plan as expensed and capitalized
28.41(g) (g) the total cost relating to defined benefit plans for the period, disclosing
separately the amounts
(i) recognised in profit or loss as an expense, and
(ii) included in the cost of an asset.
Classwise break up of plan assets with percentages
28.41(h) (h) for each major class of plan assets, which shall include, but is not limited to,
equity instruments, debt instruments, property, and all other assets, the
percentage or amount that each major class constitutes of the fair value of the
total plan assets at the reporting date.
Plan assets comprising entity's financial instruments &/or property in its use
28.41(i) (i) the amounts included in the fair value of plan assets for:
(ii) each class of the entity’s own financial instruments, and
(iii) any property occupied by, or other assets used by, the entity.
Actual return on plan assets
28.41(j) (j) the actual return on plan assets.
Principal actuarial assumptions
28.41(k) (k) the principal actuarial assumptions used, including, when applicable:
(i) the discount rates;
(ii) the expected rates of return on any plan assets for the periods
presented in the financial statements;
(iii) the expected rates of salary increases;
(iv) medical cost trend rates; and
(v) any other material actuarial assumptions used.
Group defined benefit plans
28.41 The reconciliations in (e) and (f) above need not be presented for prior periods. A
subsidiary that recognises and measures employee benefit expense on the basis of a
reasonable allocation of the expense recognised for the group (see paragraph 28.38)
shall, in its separate financial statements, describe its policy for making the
allocation and shall make the disclosures in (a)–(k) above for the plan as a whole.
Post-employment benefits - Other long-term benefits

28.42 For each category of other long-term benefits that an entity provides to its
employees, the entity shall disclose the nature of the benefit, the amount of its
obligation and the extent of funding at the reporting date.
Termination benefits
28.43 For each category of termination benefits that an entity provides to its employees,
the entity shall disclose the nature of the benefit, its accounting policy, and the
amount of its obligation and the extent of funding at the reporting date.
Contingent liability for termination benefits

28.44 When there is uncertainty about the number of employees who will accept an offer
of termination benefits, a contingent liability exists. Section 21 Provisions and
Contingencies requires an entity to disclose information about its contingent
liabilities unless the possibility of an outflow in settlement is remote.
Section 29 Income Tax
Introduction
of Section 29 which prescribes the accounting treatment for income taxes.
Reference Presentation/disclosure requirement Yes / No / Comments

N/A
Presentation
Allocation in comprehensive income and equity
29.35 An entity shall recognise tax expense in the same component of total comprehensive
income (ie continuing operations, discontinued operations, or other comprehensive
income) or equity as the transaction or other event that resulted in the tax
expense.
Current/non-current distinction
29.36 When an entity presents current and non-current assets, and current and non-
current liabilities, as separate classifications in its statement of financial position, it
shall not classify any deferred tax assets (liabilities) as current assets (liabilities).
Offsetting
29.37 An entity shall offset current tax assets and current tax liabilities, or offset
deferred tax assets and deferred tax liabilities, only when:
(a) it has a legally enforceable right to set off the amounts and,
(b) it intends either to settle on a net basis or to realise the asset and settle
the liability simultaneously.
Disclosures
Disclosure to enable evaluation of nature and financial effect of tax consequences

29.38 An entity shall disclose information that enables users of its financial statements to
evaluate the nature and financial effect of the current and deferred tax
consequences of recognised transactions and other events.
Separate disclosure for major components of tax expense
29.39 The major components of tax expense(income) shall be separately disclosed.
29.39 Such components of tax expense (income) may include:

29.39(a) (a) current tax expense (income);
29.39(b) (b) any adjustments recognised in the period for current tax of prior periods;
29.39(c) (c) the amount of deferred tax expense (income) relating to the origination and
reversal of temporary differences;
29.39(d) (d) the amount of deferred tax expense (income) relating to changes in tax rates or
the imposition of new taxes;
29.39(e) (e) the amount of the benefit arising from a previously unrecognised tax loss, tax
credit or temporary difference of a prior period that is used to reduce tax expense
29.39(f) (f) adjustments to deferred tax expense (income) arising from a change in the tax
status of the entity or its shareholders;
29.39(g) (g) deferred tax expense (income) arising from the write-down, or reversal of a
previous write-down, of a deferred tax asset in accordance with paragraph 29.31;
and
29.39(h) (h) the amount of tax expense (income) relating to those changes in accounting
policies and errors that are included in profit or loss in accordance with Section 10
Accounting Policies, Estimates and Errors, because they cannot be accounted for
retrospectively.
29.40 The following shall also be disclosed separately:

Tax expense recongised in other comprehensive income
29.40(a) (a) the aggregate current and deferred tax relating to items that are
recognised as items of other comprehensive income.
Tax expense recongised directly in equity
29.40(b) (b) the aggregate current and deferred tax relating to items that are charged
or credited directly to equity.
Explanation of significant differences between tax expense in the financial
statements and reporting to taxation authorities
29.40(c) (c) an explanation of the significant differences in amounts presented in the
statement of comprehensive income and amounts reported to tax authorities.
Explanation of changes in the applicable tax rate

29.40(d) (d) an explanation of changes in the applicable tax rate(s) compared with the
previous reporting period.
Specific disclosures for deferred tax assets and liabilities
29.40(e) (e) for each type of temporary difference and for each type of unused tax
losses and tax credits:
(i) the amount of deferred tax liabilities, deferred tax assets at the end
of the reporting period, and
(ii) an analysis of the change in deferred tax liabilities, deferred tax
assets during the period.
29.40(f) (f) 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 statement of financial position.
29.40(g) (f) in the circumstances described in paragraph 29.33, an explanation of the
nature of the potential income tax consequences that would result from the
payment of dividends to its shareholders.
29.41 If an entity does not offset tax assets and liabilities in accordance with
paragraph 29.37 because it is unable to demonstrate without undue cost or
effort that it plans to settle them on a net basis or realise them
simultaneously, the entity shall disclose the amounts that have not been offset
and the reasons why applying the requirement would involve undue cost or
effort.
Section 30 Foreign Currency Translation
Introduction
of Section 30. This section prescribes how to include foreign currency transactions
and foreign operations in the financial statements of an entity and how to translate
financial statements into a presentation currency. The principal issues are: the
determination of the method of including foreign currency transactions and foreign
operations in the financial statements of an entity, how to translate the financial
statements into a presentation currency and the selection of an appropriate
exchange rate, and how to report the effects of changes in exchange rates in
financial statements. Accounting for financial instruments denominated in a foreign
currency and hedge accounting of foreign currency items are dealt with in Section
11 Basic Financial Instruments and Section 12 Other Financial Instruments Issues.
N/A
Disclosure
An entity shall disclose the following:
Exchange difference on financial instruments measured at fair value through profit
or loss
30.25(a) (a) the amount of exchange differences recognised in profit or loss during the
period, except for those arising on financial instruments measured at fair
value through profit or loss in accordance with Sections 11 and 12.
Exchange differences classified as separate component of equity
30.25(b) (b) the amount of exchange differences arising during the period and classified
in a separate component of equity at the end of the period.
Disclosure of presentation currency
30.26 An entity shall disclose the currency in which the financial statements are presented.
Specific disclosures when presentation currency is different from the functional

currency
30.26 When the presentation currency is different from the functional currency, an entity
shall:
(a) state that fact,
(b) Disclose the functional currency and
(c) the reason for using a different presentation currency.
Specific disclosures for change in functional currency
30.27 When there is a change in the functional currency of either the reporting entity or a
significant foreign operation, the entity shall disclose that fact and the reason for
the change in functional currency.
Section 31 Hyperinflation
Introduction
of Section 31 which is applied to the financial statements, including the
consolidated financial statements, of any entity whose functional currency is the
currency of a hyperinflationary economy. It requires such an entity to prepare
financial statements that have been adjusted for the effects of hyperinflation. The
Standard does not establish an absolute rate at which hyperinflation is deemed to
arise – but cites a number of characteristics of the economic environment of a
country which indicate the presence of hyperinflation. Refer to the text of the
Section for details.
N/A
Presentation
31.13 An entity shall include in profit or loss the gain or loss on the net monetary position.
Disclosures
The following disclosures shall be made:
Fact about restatement of financial statements for changes in general purchasing
power of the functional currency
31.15(a) (a) the fact that financial statements and other prior period data have been
restated for changes in the general purchasing power of the functional
currency.
Identity and level of the price index and changes therein
31.15(b) (b) the identity and level of the price index at the reporting date and changes
during the current reporting period and the previous reporting period.
Gain or loss on monetary items

31.15(c) (c) amount of gain or loss on monetary items.
Section 32 Events after the End of the Reporting Period
Introduction
of Section 32, which defines events after the end of the reporting period and sets
out principles for recognising, measuring and disclosing those events. It also
requires the disclosures that an entity should give about the date when the financial
statements were authorised for issue. The principal issue is determining whether an
event after the reporting period is an adjusting or a non-adjusting event.
N/A
Dividends
32.8 If an entity declares dividends to holders of its equity instruments after the end of
the reporting period, the entity shall not recognise those dividends as a liability at
the end of the reporting period. The amount of the dividend may be presented as a
segregated component of retained earnings at the end of the reporting period.
Date of authorisation for issue

32.9 An entity shall disclose the date when the financial statements were authorised for
issue and who gave that authorisation.
32.9 If the entity’s owners or others have the power to amend the financial statements
after issue, the entity shall disclose that fact.
Updating disclosures about conditions at the end of the reporting period
32.4 An entity shall adjust the amounts recognised in its financial statements, including
related disclosures, to reflect adjusting events after the end of the reporting
period.
Non-adjusting events after the reporting period
An entity shall disclose the following for each category of non-adjusting event after
the end of the reporting period:
32.10(a) (a) the nature of the event, and
32.10(b) (b) an estimate of its financial effect, or a statement that such an estimate
cannot be made.
Section 33 Related Party Disclosures
Introduction
of the identification of related parties and transactions with related parties. The
primary issue is to ensure that all related parties are identified. The objective of
Section 33 is to ensure that an entity’s financial statements contain the disclosures
necessary to draw attention to the possibility that its financial position and profit or
loss may have been affected by the existence of related parties and by transactions
and outstanding balances with such parties.
N/A
General Disclosures
Name of the parent and ultimate controlling party
33.5 An entity shall disclose the name of its parent and, if different, the ultimate
controlling party.
Name of the most senior parent producing financial statements for public
33.5 If neither the entity’s parent nor the ultimate controlling party produces financial
statements available for public use, the name of the next most senior parent that
does so (if any) shall also be disclosed.
Disclosure of key management personnel compensation
33.7 An entity shall disclose key management personnel compensation in total.
Identification of related party transactions
33.8 A related party transaction is a transfer of resources, services or obligations
between a reporting entity and a related party, regardless of whether a price is
charged. Examples of related party transactions that are common to SMEs include,
but are not limited to:
Transactions with principal owners

33.8(a) (a) transactions between an entity and its principal owner(s).
Transactions between entities under common control
33.8(b) (b) transactions between an entity and another entity when both entities are
under the common control of a single entity or person.
Expenses incurred by controlling entity
33.8(c) (c) transactions in which an entity or person that controls the reporting entity
incurs expenses directly that otherwise would have been borne by the reporting
entity.
Specific Disclosures for related party relationships, balances and transactions
33.9 If an entity has related party transactions, it shall disclose the nature of the related
party relationship as well as information about the transactions, outstanding
balances and commitments necessary for an understanding of the potential effect of
the relationship on the financial statements. Those disclosure requirements are in
addition to the requirements in paragraph 33.7 to disclose key management
personnel compensation. At a minimum, disclosures shall include:
Transaction amount
33.9(a) (a) the amount of the transactions.
Outstanding balances
33.9(b) (b) the amount of outstanding balances and:
(i) their terms and conditions, including whether they are secured,
and the nature of the consideration to be provided in settlement, and
(ii) details of any guarantees given or received.

Expense and provision recognised for uncollectible related party balances
33.9(c) (c) provisions for uncollectible receivables related to the amount of
outstanding balances.
33.9(d) (d) the expense recognised during the period in respect of bad or doubtful
debts due from related parties.
33.9 Such transactions could include purchases, sales, or transfers of goods or services;
leases; guarantees; and settlements by the entity on behalf of the related party or
vice versa.
Disclosure of related party transactions by category
An entity shall make the disclosures required by paragraph 33.9 separately for each
of the following categories:
33.10(a) (a) entities with control, joint control or significant influence over the entity.
33.10(b) (b) entities over which the entity has control, joint control or significant influence.
33.10(c) (c) key management personnel of the entity or its parent (in the aggregate).
33.10(d) (d) other related parties.
Examples of disclosable related party transactions
The following are examples of transactions that shall be disclosed if they are with a
related party:
33.12(a) (a) purchases or sales of goods (finished or unfinished).
33.12(b) (b) purchases or sales of property and other assets.
33.12(c) (c) rendering or receiving of services.
33.12(d) (d) leases.
33.12(e) (e) transfers of research and development.
33.12(f) (f) transfers under licence agreements.
33.12(g) (g) transfers under finance arrangements (including loans and equity contributions in
cash or in kind).
33.12(h) (h) provision of guarantees or collateral.
33.12(i) (i) settlement of liabilities on behalf of the entity or by the entity on behalf of
another party.
33.12(j) (j) participation by a parent or subsidiary in a defined benefit plan that shares risks
between group entities.
Aggregation of items for disclosure
33.14 An entity may disclose items of a similar nature in the aggregate except when
separate disclosure is necessary for an understanding of the effects of related party
transactions on the financial statements of the entity.
Statement as to terms equivalent to arms length basis
33.13 An entity shall not state that related party transactions were made on terms
equivalent to those that prevail in arm’s length transactions unless such terms can
be substantiated.
Exemption from disclosures to government related entities
An entity is exempt from the disclosure requirements of paragraph 33.9 in relation
to:
33.11(a) (a) a state (a national, regional or local government) that has control, joint
control or significant influence over the reporting entity, and
33.11(b) (b) another entity that is a related party because the same state has control,
joint control or significant influence over both the reporting entity and the other
entity.
Section 34 Specialised Activities
Introduction
of Section 34, which provides guidance on financial reporting by SMEs involved in
three types of specialised activities: Agriculture, Extractive activities and Service
concessions.
N/A
AGRICULTURE
Disclosures – fair value model
An entity shall disclose the following with respect to its biological assets measured
at fair value:
Classes of biological assets
34.7(a) (a) a description of each class of its biological assets.
Methods and significant assumptions applied in determining fair value
34.7(b) (b) the methods and significant assumptions applied in determining the fair
value of each category of agricultural produce at the point of harvest and each
category of biological assets.
Reconciliation of changes in the carrying amount

34.7(c) (c) a reconciliation of changes in the carrying amount of biological assets
between the beginning and the end of the current period. The reconciliation
shall include:
(i) the gain or loss arising from changes in fair value less costs to sell.
(ii) increases resulting from purchases.
(iii) decreases resulting from harvest.
(iv) increases resulting from business combinations.
(v) net exchange differences arising on the translation of financial
statements into a different presentation currency, and on the translation
of a foreign operation into the presentation currency of the reporting
entity.
(vi) other changes.
Disclosures – cost model
An entity shall disclose the following with respect to its biological assets measured
using the cost model:
Classes of biological assets
34.10(a) (a) a description of each class of its biological assets.
Inability to determine fair value
34.10(b) (b) an explanation of why fair value cannot be measured reliably.
Depreciation method
34.10(c) (c) the depreciation method used.
Useful lives/Depreciation rates
34.10(d) (d) the useful lives or the depreciation rates used.
Carrying amount at the beginning and end of period
34.10(e) (e) the gross carrying amount and the accumulated depreciation (aggregated
with accumulated impairment losses) at the beginning and end of the period.
Service concession arrangements

34.16 The operator of a service concession arrangement shall recognise, measure and
disclose revenue in accordance with Section 23 Revenue for the services it performs.
Section 35 Transition to the IFRS for SME's

Introduction
of Section 35, which provides guidance on financial reporting by a first-time
adopter of the IFRS for SMEs, regardless of whether its previous accounting
framework was full IFRSs or another set of generally accepted accounting principles
(GAAP) such as its national accounting standards, or another framework such as the
local income tax basis.
N/A
General disclosures
Explanation of transition to the IFRS for SMEs
35.11 If it is impracticable for an entity to restate the opening statement of financial
position at the date of transition for one or more of the adjustments required by
paragraph 35.7, the entity shall apply paragraphs 35.7–35.10 for such adjustments in
the earliest period for which it is practicable to do so, and shall identify the data
presented for prior periods that are not comparable with data for the period in
which it prepares its first financial statements that conform to this IFRS. If it is
impracticable for an entity to provide any disclosures required by this IFRS for any
period before the period in which it prepares its first financial statements that
conform to this IFRS, the omission shall be disclosed.
Procedures for preparing financial statements at the date of transition

35.12 An entity shall explain how the transition from its previous financial reporting
framework to this IFRS affected its reported financial position, financial
performance and cash flows.
Specific disclosures
To comply with paragraph 35.12 (see above), an entity’s first financial statements
prepared using this IFRS shall include:
Nature of each change in accounting policy
35.13(a) (a) a description of the nature of each change in accounting policy.
Reconciliations of the equity
35.13(b) (b) reconciliations of its equity determined in accordance with its previous
financial reporting framework to its equity determined in accordance with this
IFRS for both of the following dates:
(i) the date of transition to this IFRS, and
(ii) the end of the latest period presented in the entity’s most recent
annual financial statements determined in accordance with its previous
financial reporting framework.
Reconciliations of the profit or loss
35.13(c) (c) a reconciliation of the profit or loss determined in accordance with its
previous financial reporting framework for the latest period in the entity’s
most recent annual financial statements to its profit or loss determined in
accordance with this IFRS for the same period.
Previous errors
35.14 If an entity becomes aware of errors made under its previous financial reporting
framework, the reconciliations required by paragraph 35.13(b) and (c) shall, to the
extent practicable, distinguish the correction of those errors from changes in
accounting policies.
No previous financial statements presented

35.15 If an entity did not present financial statements for previous periods, it shall
disclose that fact in its first financial statements that conform to this IFRS.
5th Schd Checklist
Requirements of 5th Schedule to the Companies Act, 2017
Introduction
of the 5th Schedule to the Companies Act, 2017, which are in addition to the
presentation and disclosure requirements of IFRS for SMEs.
N/A
GENERAL REQUIREMENTS
General information
5th Schd V(1) General information about the company comprising the following:
Geographical location of business units
5th Schd V(1)(i) (i) geographical location of all business units including mills/plant;
Production capacity and actual production
5th Schd V(1)(ii) (ii) the capacity of an industrial unit, actual production and the reasons for shortfall
Number of employees
5th Schd V(1)(iii) (iii) number of persons employed as on the date of financial statements and
average number of employees during the year separately disclosing factory
employees; and
Details of related party relationships, transactions, agreements and arrangements

5th Schd V(1)(iv) (iv) Names of associated companies or related parties or undertakings, with whom
the company had entered into transactions or had agreements and / or
arrangements in place during the financial year, along with the basis of relationship
describing common directorship and percentage of shareholding;
Information about associated companies, subsidiaries, joint ventures or holding

companies incorporated outside Pakistan
5th Schd V(2) In respect of associated companies, subsidiaries, joint ventures or holding
companies incorporated outside Pakistan, with whom the company had entered into
transactions or had agreements and / or arrangements in place during the financial
year, name of undertaking, registered address and country of incorporation shall be
disclosed;
Summary of significant transactions and events

5th Schd V(3) Summary of significant transactions and events that have affected the company’s
financial position and performance during the year;
Investments in/loans and advances to foreign companies
5th Schd V(5) In cases, where company has given loans or advances or has made investments (both
short term and long term) in foreign companies or undertakings, name of the
company or undertaking along with jurisdiction where it is located shall be
disclosed.
REQUIREMENTS AS TO STATEMENT OF FINANCIAL POSITION

Separate line items on the face of statement of financial position
5th Schd V(6) Following items shall be disclosed as separate line items on the face of the
statement of financial position;
5th Schd V(6)(i) (i) revaluation surplus on property, plant & equipment;
5th Schd V(6)(ii) (ii) long term deposits and prepayment;
5th Schd V(6)(iii) (iii) unpaid dividend;
5th Schd V(6)(iv) (iv) unclaimed dividend; and
5th Schd V(6)(v) (v) cash and bank balances.
Fixed Assets
Fixed assets not held in name/possession/control of the company
5th Schd V(7) Where any property or asset acquired with the funds of the company, is not held in
the name of the company or is not in the possession and control of the company,
this fact along with reasons for the property or asset not being in the name of or
possession or control of the company shall be stated; and the description and value
of the property or asset, the person in whose name and possession or control it is
held shall be disclosed;
Distinction between freehold and leasehold immovable properties

5th Schd V(8) Land and building shall be distinguished between freehold and leasehold.
Forced sale value
5th Schd V(9) Forced sale value shall be disclosed separately in case of revaluation of property,
plant and equipment or investment property;
Sale of fixed assets
5th Schd V(10) In the case of sale of fixed assets, if the aggregate book value of assets exceeds five
hundred thousand rupees, following particulars of each asset shall be disclosed,__
5th Schd V(10)(i) (i) cost or revalued amount, as the case may be;
5th Schd V(10)(ii) (ii) the book value;
5th Schd V(10)(iii) (iii) the sale price and the mode of disposal (e.g. by tender or negotiation);
5th Schd V(10)(iv) (iv) the particulars of the purchaser;
5th Schd V(10)(v) (v) gain or loss; and
5th Schd V(10)(vi) (vi) relationship, if any of purchaser with company or any of its directors.
Long Term Investments
5th Schd V(11) A statement as to whether the investments in associated companies or undertakings
have been made in accordance with the requirements under the Act.
Long Term Loans And Advances

Loans and advances to directors
5th Schd V(12) With regards to loans and advances to directors, following shall be disclosed:
(i) the purposes for which loans or advances were made; and
(ii) reconciliation of the carrying amount at the beginning and end of the period,
showing disbursements and repayments;
Loans and advances at terms other than arm's length basis
5th Schd V(13) In case of any loans or advances obtained/provided, at terms other than arm’s
length basis, reasons thereof shall be disclosed;
Loans and advances to associates
5th Schd V(14) In respect of loans, advances to associates there shall be disclosed:
5th Schd V(14)(i) (i) the name of each associate and related parties;
5th Schd V(14)(ii) (ii) the terms of loans and advances;
5th Schd V(14)(iii) (iii) the particulars of collateral security held, if any;
5th Schd V(14)(iv) (iv) the maximum aggregate amount outstanding at any time during the year
calculated by reference to month-end balances;
5th Schd V(14)(v) (v) provisions for doubtful loans and advances; and
5th Schd V(14)(vi) (vi) loans or advances written off, if any.
Current Assets
Debts/receivables from associate
5th Schd V(15) In respect of debts/receivables from associates there shall be disclosed:
5th Schd V(15)(i) (i) the name of each associate and related party;
5th Schd V(15)(ii) (ii) the maximum aggregate amount outstanding at any time during the year
calculated by reference to month-end balances;
5th Schd V(15)(iii) (iii) receivables, that are either past due or impaired, along with age analysis
distinguishing between trade debts, loans, advances and other receivables;
5th Schd V(15)(iv) (iv) debts written off as irrecoverable distinguishing between trade debts and other
receivables;
5th Schd V(15)(v) (v) provisions for doubtful or bad debts distinguishing between trade debts, loans,
advances and other receivables; and
5th Schd V(15)(vi) (vi) justification for reversal of provisions of doubtful debts, if any;
Provision for bad or doubtful loans and advances
5th Schd V(16) Provision, if any, made for bad or doubtful loans and advances or for diminution in
the value of or loss in respect of any asset shall be shown as a deduction from the
gross amounts
Share Capital And Reserves
Disclosures for reserves
5th Schd V(17) Capital and revenue reserves shall be clearly distinguished. Any reserve required to
be maintained under the Act shall be separately disclosed. Any legal or other
restrictions on the ability of the company to distribute or otherwise apply its
reserves shall also be disclosed for all kind of reserves maintained by the company
Disclosures for share capital

5th Schd V(18) In respect of issued share capital of a company following shall be disclosed
separately;
5th Schd V(18)(i) (i) shares allotted for consideration paid in cash;
5th Schd V(18)(ii) (ii) shares allotted for consideration other than cash, showing separately shares
issued against property and others (to be specified);
5th Schd V(18)(iii) (iii) shares allotted as bonus shares; and
5th Schd V(18)(iv) (iv) treasury shares;
Presentation of discount on issue of shares
5th Schd V(18A) Discount on issue of shares shall be shown separately as a deduction from share
capital in the statement of financial position and the statement of changes in equity
(if applicable)
Disclosure about shareholder agreements

5th Schd V(19) Shareholder agreements for voting rights, board selection, rights of first refusal,
and block voting shall be disclosed.
Non-Current Liabilities
5th Schd V(20) Amount due to associated company shall be disclosed separately
Current Liabilities
Separate disclosure of certain items in current liabilities
5th Schd V(21) Following items shall be disclosed as separate line items;
5th Schd V(21)(i) (i) payable to provident fund, contributory pension fund or any other contributory
retirement fund;
5th Schd V(21)(ii) (ii) deposits, accrued liabilities and advances;
5th Schd V(21)(iii) (iii) loans from banking companies and other financial institutions other than
associated company;
5th Schd V(21)(iv) (iv) loans and advances from associated company, sponsors and directors along
with purpose and utilization of amounts; and
5th Schd V(21)(v) (v) loans and advances shall be classified as secured and unsecured.
5th Schd V(21)(vi) (vi) loans or advances written off, if any.
Investments out of retirement funds maintained by the company
5th Schd V(22) In the case of provident fund, contributory pension fund or any other contributory
retirement fund, maintained by the company a statement that, investments in
collective investment schemes, listed equity and listed debt securities out of
aforementioned funds have been made in accordance with the provisions of section
218 of the Act and the conditions specified thereunder;
Specific disclosures for security deposits payable

5th Schd V(23) In respect of security deposit payable, following shall be disclosed:
5th Schd V(23)(i) (i) bifurcation of amount received as security deposits for goods/services to be
delivered/provided, into amounts utilizable for company business and others;
5th Schd V(23)(ii) (ii) amount utilized for the purpose of the business from the security deposit in
accordance with requirements of written agreements, in terms of section 217 of the
Act; and
5th Schd V(23)(iii) (iii) amount kept in separate bank account;
Contingencies And Commitments
5th Schd V(24) In describing legal proceedings, under any court, agency or government authority,
whether local or foreign include name of the court, agency or authority in which the
proceedings are pending, the date instituted, the principal parties thereto, a
description of the factual basis of the proceeding and the relief sought.
REQUIREMENTS AS TO PROFIT AND LOSS

Specific disclosures for turnover
5th Schd V(25) Following items shall be disclosed as deduction from turnover as separate line
items;
5th Schd V(25)(i) (i) trade discount; and
5th Schd V(25)(ii) (ii) sales and other taxes directly attributable to sales.
Specific disclosures for auditors' remuneration
5th Schd V(26) The aggregate amount of auditors’ remuneration, showing separately fees,
expenses and other remuneration for services rendered as auditors and for services
rendered in any other capacity and stating the nature of such other services. In the
case of joint auditors, the aforesaid information shall be shown separately for each
of the joint auditors.
Specific disclosures for donation

5th Schd V(27) In case, donation to a single party exceeds Rs. 500,000 name of donee(s) shall be
disclosed and where any director or his spouse has interest in the donee(s)
irrespective of the amount, names of such directors along with their interest shall
be disclosed.
Specific disclosures for remuneration of directors, chief executive and executives

5th Schd V(29) Complete particulars of the aggregate amount charged by the company shall be
disclosed separately for the directors, chief executive and executives together with
the number of such directors and executives such as:
(i) fees;
(ii) managerial remuneration;
(iii) commission or bonus, indicating the nature thereof;
(iv) reimbursable expenses which are in the nature of a perquisite or benefit;
(v) pension, gratuities, company's contribution to provident, superannuation and

other staff funds, compensation for loss of office and in connection with retirement
from office;
(vi) other perquisites and benefits stating their nature and, where practicable, their
approximate money values; and
(vii) amount for any other services rendered.
Specific disclosures for payment of royalties
5th Schd V(30) In case of royalties paid to companies/entities/individuals following shall be
disclosed:
(i) Name and registered address; and
(ii) Relationship with company or directors, if any.

Disclosure Checklist For Medium Sized Companies

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Disclosure Checklist For Medium Sized Companies

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Presentation & Disclosure Checklist

International Financial Reporting Standard for Small and Medium-sized E

Structure of the Checklist

Areas of noncompliance Follow up & Resolution

Areas requiring further attention Follow up & Resolution

Section Link to the Presentation & Disclosure Checklist

The section does not include any presentation or disclosure

The section does not include any presentation or disclosure

Section 3 - Financial Statement Presentation Section 3

Section 4 - Statement of Financial Position Section 4

Section 5 - Statement of Comprehensive Income and Income

Section 6 - Statement of Changes in Equity and Statement of

Section 7 - Statement of Cash Flows Section 7

Section 8 - Notes to the Financial Statements Section 8

Section 9 - Consolidated and Separate Financial Statements Section 9

Section 10 - Accounting Policies, Estimates and Errors Section 10

Section 11 - Basic Financial Instruments Section 11

Section 12 - Other Financial Instruments Issues Section 12

Section 13 - Inventories Section 13

Section 14 - Invesments in Associates Section 14

Section 15 - Investments in Joint Ventures Section 15

Section 16 - Investment Property Section 16

Section 17 - Property, plant and equipment Section 17

Section 18 - Intangible Assets other than Goodwill Section 18

Section 19 - Business Combinations and Goodwill Section 19

Section 20 - Leases Section 20

The section does not include any presentation or disclosure

Section 23 - Revenue Section 23

Section 24 - Government Grants Section 24

Section 25 - Borrowing Costs Section 25

Section 26 - Share-based Payment Section 26

Section 27 - Impairment of Assets Section 27

Section 28 - Employee Benefits Section 28

Section 29 - Income tax Section 29

Section 30 - Foreign Currency Translation Section 30

Section 31 - Hyperinflation Section 31

Section 32 - Events after the end of the reporting period Section 32

Section 33 - Related Party Disclosures Section 33

Section 34 - Specialised Activities Section 34

Section 35 - Transition to the IFRS for SMEs Section 35

5th Schedule to the Companies Act, 2017 5th Schd Checklist

Section 3 Financial Statement Presentation

Reference Yes / No / Comments

3.17(b)(ii) (b)(ii) a separate income statement and a separate statement of

3.17(c) (c) a statement of changes in equity for the reporting period.

3.8 When preparing financial statements, management shall make an assessment of an

3.10(b) (a) that fact.

When the presentation or classification of items in the financial statements is

(b) this IFRS requires a change in presentation.

3.23(e) (d) the presentation currency, as defined in Section 30 Foreign Currency

Section 4 Statement of Financial Position

Section 5 Statement of Comprehensive Income and Income Statement

Reference Yes / No / Comments

Information to be presented in the statement of comprehensive income

An entity shall disclose separately the following items in the statement of

Requirements applicable to both approaches

Section 6 Statement of Changes in Equity and Statement of Income and Retained

Statement of income and retained earnings

Information to be presented in the statement of income and retained earnings

Section 7 Statement of Cash Flows

Interest and dividends

Section 8 Notes to the Financial Statements