Users also may note that the Illustrative statements are as per the Indian Accounting Standards

prevailing at the time of preparation of this publication. The Ind AS, Schedule II or any other
law may be amended requiring additional, or modified information at a later date.
The publication is aimed to be useful to Accountants of medium size companies as reference tool
to prepare financials as per Ind AS. If the transaction or item is immaterial to the entity, then it
is not relevant to users of financial statements, in which case, Ind AS does not require the item
to be disclosed. Applying the concept of materiality requires judgment, in particular, in relation
to matters of presentation and disclosure, and inappropriate application of the concept may be
another cause of the perceived disclosure problem.
Please note that the notes and amounts disclosed in the publication are purely for illustrative
purpose and may not be consistent throughout the publication. The names of people and entities
included in this publication are fictitious. Any resemblance to a person or entity is purely
coincidental.

Structure of Illustrative Ind AS Financials

The structure used in the publication is prepared keeping in mind the requirement from medium
size company covered under Ind AS and may not be suitable for all companies. The companies
may use alternative structure for presenting the notes to financial statements.
As explained above, the primary purpose of these financial statements is to illustrate how the
most commonly applicable disclosure requirements can be met. It is essential that entities consider
their own specific circumstances when determining which disclosures to include. These financial
statements are not intended to act as guidance for making the materiality assessments; they must
always be tailored to ensure that an entity’s financial statements reflect and portray its specific
circumstances and its own materiality considerations. Only then will the financial statements
provide decision-useful financial information.

How to use these illustrative financial statements to prepare entity-specific disclosures

Users of this publication are encouraged to prepare entity-specific disclosures. It should be noted
that the illustrative financial statements of the Group are not designed to satisfy any stock market
or country-specific regulatory requirements, nor is this publication intended to reflect disclosure
requirements that apply mainly to regulated or specialised industries.

Western India Regional Council of The Institute of Chartered Accountants of India ix