Balance Sheet


Balance Sheet

A. Minimum Disclosures on the Face of the Balance Sheet

The face of the balance sheet should include, as a minimum, the following categories:

  1. Property, plant, and equipment;

  2. Intangible assets;

  3. Financial assets;

  4. Investments accounted for using the equity method;

  5. Inventories;

  6. Trade and other receivables;

  7. Cash and cash equivalents;

  8. Trade and other payables;

  9. Tax liabilities and assets as required by IAS 12;

  10. Provisions;

  11. Noncurrent interest-bearing liabilities;

  12. Minority interest; and

  13. Issued capital and reserves.

    (IAS 1, Para 66)

B. Additional Line Items on the Face of the Balance Sheet

Additional line items, headings and subtotals should be presented on the face of the balance sheet when an IAS requires it, or when such presentation is necessary to present fairly the enterprise's financial position.

(IAS 1, Para 67)

C. Further Subclassifications of Line Items Presented

Further subclassifications of the line items (presented on the face of the balance sheet), classified in a manner appropriate to the enterprise's operations, should be disclosed either on the face of the balance sheet or in the notes to the financial statements. Subclassification of line items should, when appropriate, be done based on the nature of the item and, amounts payable to and receivable from the parent enterprise, fellow subsidiaries and associates and other related parties should be disclosed separately.

(IAS 1, Para 72)

D. Inventories

  1. The accounting policies and the cost formula used in inventory valuation.

    (IAS 2, Para 34[a])

  2. Total carrying amount and the breakdown of the carrying amount by appropriate subclassifications, such as merchandise, production supplies, work in progress, and finished goods.

    (IAS 2, Paras 34[b] and 35)

  3. Carrying amount of inventories carrying at net realizable value.

    (IAS 2, Para 34[c])

  4. Carrying amount of inventories pledged as security for liabilities.

    (IAS 2, Para 34[f])

  5. The amount of any reversal of write-down that is recognized as income, along with disclosure of circumstances or events that led to the reversal.

    (IAS 2, Paras 34 [d] and [e])

  6. When the cost of inventories is determined using the last-in, first-out (LIFO) formula (under the "allowed alternative treatment"), disclose the difference between the amount of inventories as shown in the balance sheet and either

    1. The lower of amount arrived at using the "benchmark treatment" and the net realizable value; or

    2. The lower of current cost at the balance sheet date and net realizable value.

    (IAS 2, Para 36)

  7. Disclose either of the following:

    1. Cost of inventories reported in expense for the period; or

    2. Operating costs applicable to revenues, recognized as expenses for the period, classified by their nature (e.g., raw materials consumed).

    (IAS 2, Para 37)

E. Property, Plant, and Equipment (PP&E)

  1. In respect of each class (i.e., groupings of assets of a similar nature and use) of PP&E, the following disclosures are required:

    1. Measurement basis/bases used for the determination of the gross carrying amount; if more than one basis has been employed, then also the gross carrying amount determined in accordance with that basis in each category;

    2. The depreciation method(s) used;

    3. Either the useful lives or the depreciation rates used;

    4. The gross carrying amount and the accumulated depreciation at the beginning and the end of the period;

    5. A reconciliation of the carrying amount at the beginning and the end of the period disclosing

      1. Additions;

      2. Disposals;

      3. Acquisitions by means of business combinations;

      4. Increases/decreases resulting from revaluations and from impairment losses recognized or reversed directly in equity (if any);

      5. Impairment losses recognized in the income statement (if any);

      6. Impairment losses reversed in the income statement (if any);

      7. Depreciation;

      8. Net exchange differences arising from translation of financial statements of a foreign entity (in accordance with IAS 21); and

      9. Other changes, if any.

      (Comparative information is not required for the reconciliation in e. above.)

      (IAS 16, Para 66)

  2. Additional disclosure to be made include the following:

    1. The existence and amounts of restrictions on title, and PP&E pledged as security for liabilities;

    2. The accounting policy for restoration costs relating to items of PP&E;

    3. The amount of expenditures in respect of PP&E in the course of construction; and

    4. The amount of outstanding commitments for acquisition of PP&E.

    (IAS 16, Para 67)

  3. In case items of PP&E are stated at revalued amounts, disclose the following information:

    1. The basis used to revalue the items of PP&E;

    2. The effective date of revaluation;

    3. Whether an independent party prepared the valuation;

    4. The nature of the indices used to determine replacement costs;

    5. The carrying amount of each class of PP&E that would have been included in the financial statements had the assets been carried under the benchmark treatment; and

    6. The revaluation surplus, including the movements for the period in that account and disclosure of any restrictions on the distribution of the balance in the revaluation surplus account to shareholders.

    (IAS 16, Para 70)

  4. An enterprise should disclose information on impaired property, plant, and equipment under IAS 36 in addition to information required under IAS 16, para 60. [Refer E.1.e. (4) to (6) above.]

    (IAS 16, Para 65)

  5. Other recommended disclosures

    1. The carrying amount of temporarily idle PP&E;

    2. The gross carrying amount of fully depreciated PP&E still in use;

    3. The carrying amount of PP&E retired from active use and held for sale; and

    4. In cases where items of PP&E are carried at cost less accumulated depreciation (in accordance with the "benchmark treatment"), the fair value of PP&E if it is materially different from the carrying amount.

    (IAS 16, Para 71)

F. Intangible Assets

  1. In the case of each class of intangible assets, distinguishing between internally generated intangible assets and other intangible assets, the financial statements should disclose

    1. The useful lives or the amortization rates used;

    2. The amortization methods used;

    3. The gross carrying amount and the accumulated amortization (aggregated with accumulated impairment) at the beginning and at the end

    4. The line item(s) of the income statement in which the amortization of intangible assets is included;

    5. A reconciliation of the carrying amount at the beginning and the end of the period showing:

      1. Additions, indicating separately those from internal development and through business combinations;

      2. Retirements and disposals;

      3. Increases or decreases resulting from revaluations and from impairment losses recognized or reversed directly in equity (if any);

      4. Impairment losses recognized in income statement (if any);

      5. Impairment losses reversed in the income statement (if any);

      6. Amortization recognized;

      7. Net exchange differences arising on translation of financial statements of a foreign entity; and

      8. Other changes in carrying amount.

      (Comparative information is not required.)

      (IAS 38, Para 107)

  2. Additional disclosures with respect to intangibles are the following:

    1. If the amortization period of more than twenty years is used to amortize an intangible asset, the reasons why the presumption that the useful life will not exceed twenty years will be rebutted. The enterprise should describe the factors that were instrumental in determining the useful life of more than twenty years);

    2. In the case of an individual intangible asset that is material to the financial statements as a whole, a description, the carrying amount, and the remaining amortization period;

    3. In the case of intangible assets acquired by way of a government grant and initially recognized at fair value: the fair value initially recognized for these assets, their carrying amounts, and whether they are carried under the benchmark treatment or the allowed alternative treatment for subsequent measurements;

    4. The existence and the carrying amount of intangible assets pledged as security for liabilities; and

    5. The amount of commitments for the acquisition of intangible assets.

    (IAS 38, Para 111)

  3. In the case of intangible assets carried under the allowed alternative method (i.e., at revalued amounts), the following disclosures are prescribed:

    1. By class of intangible assets: the effective date of the revaluation, the carrying amount of revalued intangible assets, and the carrying amount that would have been included had the revalued intangible assets been carried under the benchmark treatment (i.e., at cost less accumulated amortization); and

    2. The quantum of revaluation surplus that relates to intangible assets at the beginning and the end of the period, indicating the changes during the period and any restrictions on the distributions of the balance to shareholders.

    (IAS 38, Para 113)

  4. The financial statements should disclose the aggregate amount of research and development expenditure recognized as an expense during the period.

    (IAS 38, Para 115)

G. Other Long-Term Assets

The following items should be disclosed separately:

  1. Long-term investments

    1. Disclosures about investments in subsidiaries include the following:

        1. When certain subsidiaries have not been consolidated (i.e., where control is intended to be temporary or where the subsidiary operates under severe long-term restrictions), and these instead have been accounted for as if they were passive investments, the reason(s) for not consolidating the subsidiary.

          (IAS 27, Para 32 [b(i)])

        2. The names of any enterprises in which more than one half of the voting power is owned, directly or indirectly through subsidiaries, but which, because of the absence of control, are not subsidiaries.

          (IAS 27, Para 32 [b(iii)])

      1. A parent company, which is itself a wholly (or virtually wholly) owned subsidiary, and which is not presenting consolidated financial statements, should disclose the reasons why consolidated financial statements have not been presented, together with the bases on which subsidiaries are accounted for in its separate financial statements, as well as the name and registered office of its parent that publishes consolidated financial statements.

        (IAS 27, Para 8)

      2. In the parent company's separate (stand-alone basis) financial statements, description of the method used to account for subsidiaries should be disclosed.

        (IAS 27, Para 32 [c])

      3. The following disclosures are required in consolidated financial statements (in addition to disclosures outlined above):

        1. A listing of significant subsidiaries, including the name, country of incorporation or residence, proportion of ownership interest and, if different, proportion of voting power held;

          (IAS 27, Para 32 [a])

        2. The nature of relationship between the parent and a subsidiary, of which the parent does not own, directly or indirectly through subsidiaries, more than one-half of the voting power, but which is being accounted for as a subsidiary due to the existence of effective control;

          (IAS 27, Para 32[b(ii)])

        3. The effect of the acquisition and disposal of subsidiaries on the financial position at the reporting date, and the results for the period and the corresponding amounts for the preceding period; and

          (IAS 27, Para 32[b(iv)])

        4. The fact that uniform accounting policies were not used for like transactions and other events affecting the parent and the subsidiaries, together with the proportion of the items in the consolidated financial statements to which the different accounting policies have been applied, if applicable.

          (IAS 27, Para 21)

    2. Investments in associates

      1. Investments in associates accounted for using the equity method should be classified as long-term assets and separately set forth in the balance sheet. The investor's share of profits or losses of such investments should be disclosed as a separate item in the income statement and the investor's share of any extraordinary item or prior period items should be separately disclosed as well.

        (IAS 28, Para 28)

      2. The following disclosures are also required:

        1. An appropriate listing and description of significant associates, including the proportion of ownership interest and, if different, the proportion of voting power; and

        2. The method(s) used to account for such investments.

          (IAS 28, Para 27)

      3. If an investor discontinues recognition of its share of losses of an investee (associate), the investor should disclose in the notes to the financial statements the amount of its unrecognized share of losses of the investee for the current period as well as year-to-date (i.e., on a cumulative basis).

        (SIC 20)

    3. Investment property

      1. In certain cases investment property will be property that is owned by the reporting entity and leased to others under operating-type lease arrangements. The disclosure requirements set forth in IAS 17 continue unaltered by IAS 40. (In addition, IAS 40 stipulates a number of new disclosure requirements set out below.)

        (IAS 40, Para 65)

      2. Disclosures applicable to all investment properties

        1. When classification is difficult, an enterprise that holds an investment property will need to disclose the criteria used to distinguish investment property from owner-occupied property and from property held for sale in the ordinary course of business;

        2. The methods and any significant assumptions that were used in ascertaining the fair values of the investment properties are to be disclosed as well. Such disclosure should also include a statement about whether the determination of fair value was supported by market evidence or it relied heavily on other factors (which the enterprise needs to disclose as well) due to the nature of the property and the absence of comparable market data;

        3. If investment property has been revalued by an independent valuer having recognized and relevant qualifications and who has recent experience with properties having similar characteristics of location and type, the extent to which the fair value of investment property is based on valuation by such an independent valuer. If there is no such valuation, that fact should be disclosed as well;

        4. The existence and the amount of any restrictions which may potentially affect the realizability of investment property or the remittance of income and proceeds from disposal to be received; and

        5. Material contractual obligations to purchase or build investment property or for repairs, maintenance or improvements thereto.

          (IAS 40, Para 66)

      3. Disclosure applicable to investment property measured using the fair value model

        1. In addition to the disclosures outlined in IAS 40, para 66, the standard requires that an enterprise that uses the fair value model should also disclose: a reconciliation to be presented of the carrying amounts of the investment property, from the beginning to the end of the reporting period. The reconciliation will separately identify additions resulting from acquisitions, those resulting from business combinations, and those deriving from capitalized expenditures subsequent to the property's initial recognition. It will also identify disposals, gains or losses from fair value adjustments, the net exchange differences, if any, arising from the translation of the financial statements of a foreign entity, transfers to and from inventories and owner-occupied properties and any other movements. (It will not be required that comparative reconciliation data be presented for prior periods);

        2. Under exceptional circumstances, due to lack of reliable fair value, when an enterprise measures investment property using the benchmark treatment under IAS 16, the above reconciliation should disclose amounts separately for that investment property from amounts relating to other investment property. In addition, an enterprise should also disclose

          1. A description of such a property,

          2. An explanation of why fair value cannot be reliably measured,

          3. If possible, the range of estimates within which fair value is highly likely to lie, and

          4. On disposal of such an investment property, the fact that the enterprise has disposed of investment property not carried at fair value along with its carrying amount at the time of disposal and the amount of gain or loss recognized.

            (IAS 40, Paras 67 and 68)

      4. Disclosures applicable to investment property measured using the cost model

        1. In addition to the disclosure requirements outlined in IAS 40, para 66, the standard requires that an enterprise that applies the cost model should also disclose: the depreciation methods used, the useful lives or the depreciation rates used, and the gross carrying amount and the accumulated depreciation (aggregated with accumulated impairment losses) at the beginning and end of the period. It should also disclose a reconciliation of the carrying amount of investment property at the beginning and the end of the period showing the following details: additions resulting from acquisitions, those resulting from business combinations, and those deriving from capitalized expenditures subsequent to the property's initial recognition. It should also disclose disposals, depreciation, impairment losses recognized and reversed, the net exchange differences, if any, arising from the translation of the financial statements of a foreign entity, transfers to and from inventories and owner-occupied properties, and any other movements. (It will not be required that comparative reconciliation data be presented for prior periods);

        2. The fair value of investment property carried under the cost model should also be disclosed. In exceptional cases, when the fair value of the investment property cannot be reliably estimated, the enterprise should also disclose

          1. A description of such property,

          2. An explanation of why fair value cannot be reliably measured, and

          3. If possible, the range of estimates within which fair value is highly likely to lie.

            (IAS 40, Para 69)

H. Financial Instruments

  1. Mandatory disclosures

    1. For each class of either financial asset, financial liability or equity instrument, whether recognized in the balance sheet or not, disclose the following:

      1. Information concerning the extent and nature of the instrument, including significant terms and conditions which may affect the amount, timing, or certainty of future cash flows; and

      2. The accounting policies and methods used to account for the instruments, including relevant criteria for recognition and the basis of measurement employed. As part of the disclosure required by IAS 32, para 47(b), the following should be included in the disclosures of the enterprise's accounting policies:

        1. Separately for significant classes of financial assets, the methods and significant assumptions applied in estimating fair values for the financial assets and financial liabilities that are carried at fair value;

        2. Whether gains and losses arising from changes in the fair value of available-for-sale financial assets (carried at fair value) are included in net income or loss for the period or are recognized directly in equity until the disposal of the financial asset; and

        3. For each of the four categories of financial assets defined in para 10 of IAS 39, whether "regular way" purchases of financial assets are accounted for at trade date or settlement date.

          (IAS 39, Para 167)

    2. For each class of either financial asset or financial liability, whether recognized in the balance sheet or not, disclose the following information about exposure to interest rate risk:

      1. The dates of contractual repricing or maturity, whichever comes first; and

      2. The effective interest rates, if applicable.

        (IAS 32, Para 56)

    3. For each class of financial asset, whether recognized in the balance sheet or not, disclose the following information about exposure to credit risk:

      1. The amount which represents the maximum credit risk exposure as of the balance sheet date, without regard to any collateral held, should the other party fail to perform under the terms of the instrument; and

      2. Any significant concentrations of credit risk.

        (IAS 32, Para 66)

    4. For each class of financial asset or financial liability, whether or not recognized in the balance sheet, disclose fair value information, unless this cannot be developed on a timely basis with sufficient reliability, in which case that fact must be stated, together with relevant information about the principal characteristics which would be determinative of the fair values of the instruments. This does not apply to financial assets and financial liabilities that are carried at fair value.

      (IAS 32, Para 7; IAS 39, Para 166)

    5. When financial assets are carried at amounts in excess of fair values, disclose the following:

      1. The carrying amounts and fair values of individual assets or appropriately grouped assets; and

      2. The reasons for not presenting the assets at fair values, including the nature of any evidence supporting management's belief that the carrying amounts will be recovered. This does not apply to financial assets and financial liabilities carried at fair value.

        (IAS 32, Para 88; IAS 39, Para 166)

    6. For instruments accounted for as hedges of anticipated transactions, disclose the following information:

      1. A description of the anticipated transactions, including the timing of expected occurrence;

      2. A description of the hedging instruments used; and

      3. The amount of any deferred (unrecognized) gains or losses, as well as the expected timing of recognition.

        (IAS 32, Para 91)

    7. An enterprise should disclose its financial risk management objectives and policies, including its policy for hedging each major type of forecasted transaction for which hedge accounting is used.

      (IAS 32, Para 43A)

    8. As part of the disclosure required by IAS 32, para 47(b), the following should be included in the disclosures of the enterprise's accounting policies:

      1. Separately for significant classes of financial assets, the methods and significant assumptions applied in estimating fair values for the financial assets and financial liabilities that are carried at fair value;

      2. Whether gains and losses arising from changes in the fair value of available-for-sale financial assets (carried at fair value) are included in net income or loss for the period or are recognized directly in equity until the disposal of the financial asset; and

      3. For each of the four categories of financial assets defined in para 10 of IAS 39, whether "regular way" purchases of financial assets are accounted for at trade date or settlement date.

        (IAS 32, Para 91)

    9. In applying IAS 39, para 167(a), the following disclosures would be required: prepayment rates, rates of estimated credit losses, and interest and discount rates.

      (IAS 39, Para 168)

    10. The financial statements should include all of the following additional disclosures relating to hedging:

      1. A description of the enterprise's financial risk management objectives and policies, including its policy for hedging each major type of forecasted transaction;

      2. Disclosure of the following separately for designated fair value hedges, cash flow hedges, and hedges of a net investment in a foreign entity:

        1. A description of the hedge;

        2. A description of the financial instruments designated as hedging instruments for the hedge and their fair values at the balance sheet date;

        3. The nature of the risks being hedged; and

        4. For hedges of forecasted transactions, the periods in which the forecasted transactions are expected to occur, when they are expected to enter into the determination of net profit or loss, and a description of any forecasted transaction for which hedge accounting had previously been used but that is no longer expected to occur; and

      3. If a gain or loss on derivative and nonderivative financial assets and liabilities designated as hedging instruments in cash flow hedges has been recognized directly in equity, to disclose the following:

        1. The amount that was so recognized in equity during the current period;

        2. The amount that was removed from equity and reported in net profit or loss for the period; and

        3. The amount that was removed from equity and added to the initial measurement of the acquisition cost or other carrying amount of the asset or liability in a hedged forecasted transaction during the current period.

          (IAS 39, Para 169)

    11. The financial statements should include all of the following additional disclosures relating to financial instruments:

      1. If a gain or loss from remeasuring to fair value available-for-sale financial assets (other than assets relating to hedges) has been recognized directly in equity, disclose the amount that was so recognized in equity during the current period and the amount that was removed from equity and reported in net profit or loss for the period;

        1. If the presumption that fair value can be reliably measured for all financial assets that are available for sale or held for trading has been overcome, and the enterprise is, therefore, measuring any such financial assets at amortized cost, that fact, together with a description of the financial assets, their carrying amount, and explanation of why fair value cannot be reliably measured, and, if possible, the range of estimates within which fair value is highly likely to lie; and

        2. If financial assets whose fair value previously could not be measured reliably are sold, that fact, the carrying amount of such financial assets at the time of sale, and the amount of gain or loss recognized;

      2. Disclose significant items of income, expense, and gains and losses resulting from financial assets and financial liabilities, irrespective of the fact that these are included in net profit or loss for the period or are recognized as a separate component of equity. For this purpose

        1. Total interest income and total interest expense should be disclosed separately;

        2. In the case of available-for-sale financial assets that are adjusted to fair value after initial acquisition, total gains and losses from derecognition of such financial assets included in net profit or loss for the period should be reported separately from total gains and losses from fair value adjustments of recognized assets and liabilities included in net profit or loss for the period.

          Note 

          A similar split of "realized" versus "unrealized" gains and losses with respect to financial assets and liabilities held for trading is not required.

        3. The enterprise should disclose the amount of interest income that has been accrued on impaired loans pursuant to para 116 of IAS 39 and that has not yet been received in cash.

      3. If the enterprise has entered into a securitization or repurchase agreement, it should disclose separately for such transactions occurring in the current financial reporting period and for remaining retained interests from transactions occurring in prior financial reporting periods the nature and extent of such transactions, including a description of any collateral and quantitative information about the key assumptions used in computing the fair values of new and retained interests in addition to disclosing whether the financial assets have been derecognized;

      4. In case the enterprise has reclassified a financial asset as one required to be reported at amortized cost (rather than at fair value), the reason for such reclassification should be disclosed; and

      5. Disclosure should be made of the nature and amount of any impairment loss or reversal of an impairment loss recognized for a financial asset. Such disclosure should be made separately for each significant class of financial asset.

        (IAS 39, Para 170)

  2. Recommended disclosures

    1. The total amount of change in the fair values of financial assets and liabilities which has been recognized in income or expense for the year being reported on.

    2. The total amount of deferred (unrecognized) gain or loss on hedging instruments, other than those associated with anticipated transactions.

    3. The average aggregate carrying amount during the year of recognized financial assets and liabilities; the average aggregate principal, stated or notional amounts of unrecognized financial assets and liabilities; and the average aggregate fair value of all financial assets and liabilities, particularly when the amounts as of the balance sheet date may not be indicative of the level of activity during the year then ended.

    4. Any other information which would enhance users' understanding of the financial instruments.

      (IAS 32, Para 94)

I. Provisions

  1. For each class of provision:

    1. The carrying amount at the beginning and end of the period;

    2. Additional provisions made during the current period, including increases to existing provisions;

    3. Amounts utilized (i.e., incurred and charged against the provision) during the period;

    4. Unused amounts reversed during the period; and

    5. The increase during the period in the discounted amount resulting from the passage of time and the effect of any change in discount rate.

    (Comparative information is not required.)

    (IAS 37, Para 84)

  2. For each class of provision an enterprise should disclose the following:

    1. A brief description of the nature of the obligation and the expected timing of resulting outflows of economic benefits;

    2. An indication of any uncertainties about the amount or timing of those outflows. Where necessary, disclosure of major assumptions made concerning future events; and

    3. The amount of any expected reimbursement, disclosing any asset that has been recognized for that expected reimbursement.

    (IAS 37, Para 85)

  3. In extremely rare circumstances, if some or all disclosures as outlined in IAS 37, paras 84 and 85, are expected to prejudice seriously the position of the enterprise in a dispute with other parties, an enterprise need not disclose such information. Instead, it should disclose the general nature of the dispute, along with the fact that, and reason why, the information has not been disclosed.

    (IAS 37, Para 92)

J. Deferred Tax Liabilities and Assets

  1. Tax assets and tax liabilities should be presented separately from other assets and liabilities; deferred tax assets and liabilities should be distinguished from those arising from current tax expense.

    (IAS 12, Para 69)

  2. If a classified balance sheet is presented, deferred tax assets and liabilities should not be included in current assets and liabilities.

    (IAS 12, Para 70)

  3. Current tax assets and tax liabilities should not be offset unless there is a legally enforceable right of offset and the enterprise intends to settle on a net basis, or to realize the asset and settle the liability simultaneously.

    (IAS 12, Para 71)

  4. Deferred tax assets and tax liabilities relating to different jurisdictions should be presented separately.

    (IAS 12, Para 74)

  5. Deferred tax assets and tax liabilities relating to different enterprises in a group which are taxed separately by the taxation authorities should not be offset unless there is a legally enforceable right of offset.

    (IAS 12, Para 74)

  6. When utilization of deferred tax assets is dependent upon future profitability in excess of amounts from the reversals of taxable temporary differences, and the entity has incurred losses in either the current or preceding period, the amount of deferred tax asset should be disclosed together with the nature of any evidence of its realizability.

    (IAS 12, Para 82)

K. Employee Benefits—Defined Benefit Pension and Other Postretirement Benefit Programs

  1. The enterprise's accounting policy for recognizing actuarial gains and losses.

  2. A general description of the types of plans in use.

  3. A reconciliation of the assets and liabilities recognized in the balance sheet, at a minimum presenting

    1. The present values, as of the balance sheet dates, of wholly unfunded defined benefit obligations;

    2. The present values, as of the balance sheet dates, before any deduction for fair value of plan assets, of defined benefit obligations that are wholly or partially funded;

    3. The fair value of plan assets as of the balance sheet dates;

    4. Net actuarial gains or losses excluded from the balance sheets;

    5. Past service costs not yet recognized in the balance sheets;

    6. Any amounts not recognized as assets due to application of IAS 19, para 58(b); and

    7. The amounts recognized in the balance sheets.

  4. The amounts included in the fair value of plan assets for

    1. Each category of the reporting enterprise's own financial instruments; and

    2. Any property occupied by, or other assets used by, the reporting enterprise.

  5. A reconciliation showing changes during the period in the net liability (or asset) recognized in the balance sheets.

  6. The total expense recognized in the income statements, for each of the following cost components, identifying the line item(s) of the income statement in which these are included:

    1. Current service cost;

    2. Interest cost;

    3. Expected return on plan assets;

    4. Actuarial gains or losses;

    5. Past service cost; and

    6. The effects of any curtailments or settlements.

  7. The actual return on plan assets; and

  8. The principal actuarial assumptions used as of the balance sheet dates, including, where applicable (to be disclosed in absolute, not relative, terms)

    1. The discount rates;

    2. The expected rates of return on any plan assets for the periods presented in the financial statements;

    3. The expected rates of salary increases (and/or changes in an index or other variable specified in the formal or constructive terms of a plan as the basis for future benefit increases);

    4. Medical cost trend rates; and

    5. Any other material actuarial assumptions used.

    (IAS 19, Para 120)

L. Employee Benefits—Other Benefit Plans

  1. For defined contribution pension plans and similar arrangements, the amount recognized as expense for the period being reported upon must be disclosed.

    (IAS 19, Para 46)

  2. For long-term compensated absences, long-term disability plans, profit sharing or bonus arrangements or deferred compensation plans payable more than twelve months after the end of the period in which benefits are earned, and similar types of benefit plans, any disclosures which would be mandated by other international standards, such as IAS 8 and IAS 24 (there being no specific disclosures required by IAS 19).

    (IAS 19, Para 131)

  3. For termination benefits, disclosures mandated for contingencies by IAS 10, as well as other disclosures which may be required under other international accounting standards such as IAS 8 and IAS 24.

    (IAS 19, Paras 141–143)

  4. For equity compensation benefits (e.g., those relating to stock option plans and other such arrangements)

    1. The nature and terms, including vesting provisions, of the plans;

    2. The enterprise's accounting policy for such plans;

    3. The amounts recognized in the financial statements for such plans;

    4. The number and terms (including, if applicable, dividend and voting rights, conversion rights, exercise dates, exercise prices, and expiration dates) of the enterprise's own equity financial instruments which are held by equity compensation plans (and, in the event of share options, by employees) as of the beginning and end of the period being reported upon, together with indications of the extents to which vesting has occurred;

    5. The number and terms (including, if applicable, dividend and voting rights, conversion rights, exercise dates, exercise prices and expiration dates) of equity financial instruments issued by the enterprise to equity compensation plans or to employees (or of the enterprise's own equity financial instruments distributed by equity compensation plans to employees) during the period being reported upon, together with the fair value of any consideration received from the equity compensation plans or employees;

    6. The number, exercise dates, and exercise prices of share options exercised under equity compensation plans during the period;

    7. The number of share options held by equity compensation plans, or held by employees under such plans, that lapsed during the period; and

    8. The amount and principal terms of any loans or guarantees granted by the reporting enterprise to, or on behalf of, equity compensation plans.

    9. The fair values, at beginning and end of the period being reported upon, of the enterprise's own equity financial instruments, other than share options, held by equity compensation plans; and

    10. The fair value, at the date of issue, of the enterprise's own equity financial instruments, other than share options, issued by the enterprise to equity compensation plans or to employees, or by the equity compensation plan to employees, during the period.

    11. Whenever it is impracticable to determine the fair value of the equity financial instruments, other than share options, that fact must be disclosed.

      (IAS 19, Paras 147–148)

  5. For short-term employee benefits, such as short-term compensated absences and profit sharing or bonus arrangements to be paid within twelve months after the end of the period in which the employees render the related services, any disclosures which would be required by other international accounting standards, such as IAS 24, must be made.

    (IAS 19, Para 23)

M. Leases—from the Standpoint of a Lessee

  1. For finance leases

    In addition to requirements of IAS 32, the revised IAS 17, para 23, mandates the following disclosures for lessees under finance leases:

    1. For each class of asset, the net carrying amount at balance sheet date;

    2. A reconciliation between the total of minimum lease payments at the balance sheet date, and their present value. In addition, an enterprise should disclose the total of the minimum lease payments at the balance sheet date, their present value, for each of the following periods:

      1. Due in one year or less,

      2. Due in more than one but no more than five years, and

      3. Due in more than five years.

    3. Contingent rents included in profit or loss for the period.

    4. The total of minimum sublease payments to be received in the future under noncancelable subleases as of the balance sheet date.

    5. A general description of the lessee's significant leasing arrangements including, but not necessarily limited to the following:

      1. The basis for determining contingent rentals;

      2. The existence and terms of renewal or purchase options and escalation clauses; and

      3. Restrictions imposed by lease arrangements such as on dividends or assumptions of further debt or further leasing.

      (IAS 17, Para 23)

  2. For operating leases

    Lessees should, in addition to the requirements of IAS 32, make the following disclosures for operating leases:

    1. Total of the future minimum lease payments under noncancelable operating leases for each of the following periods:

      1. Due in one year or less;

      2. Due in more than one year but no more than five years; and

      3. Due in more than five years.

    2. The total of future minimum sublease payments expected to be received under noncancelable subleases at the balance sheet date;

    3. Lease and sublease payments included in profit or loss for the period, with separate amounts of minimum lease payments, contingent rents, and sublease payments;

    4. A general description of the lessee's significant leasing arrangements including, but not necessarily limited to the following:

      1. The basis for determining contingent rentals,

      2. The existence and terms of renewal or purchase options and escalation clauses, and

      3. Restrictions imposed by lease arrangements such as on dividends or assumption of further debt or on further leasing.

    (IAS 17, Para 26)

N. Leases—from the Standpoint of Lessor

  1. For finance leases

    Lessors under finance leases are required to disclose, in addition to disclosures under IAS 32, the following:

    1. A reconciliation between the total gross investment in the lease at the balance sheet date, and the present value of minimum lease payments receivable as of the balance sheet date, categorized into

      1. Those due in one year or less;

      2. Those due in more than one year but not more than five years; and

      3. Those due beyond five years.

    2. Unearned finance income.

    3. The accumulated allowance for uncollectible minimum lease payments receivable.

    4. Total contingent rentals included in income.

    5. A general description of the lessor's significant leasing arrangements.

    (IAS 17, Para 39)

  2. For operating leases

    For lessors under operating leases the following expanded disclosures are prescribed:

    1. For each class of asset, the gross carrying amount, the accumulated depreciation and accumulated impairment losses at the balance sheet date, including

      1. Depreciation recognized in income for the period;

      2. Impairment losses recognized in income for the period;

      3. Impairment losses reversed in income for the period.

    2. Depreciation recognized on assets held for operating lease use during the period.

    3. Future minimum lease payments under noncancellable operating leases, in the aggregate and classified into

      1. Those due in no more than one year;

      2. Those due in more than one but not more than five years; and

      3. Those due in more than five years.

    4. Total contingent rentals included in income for the period.

    5. A general description of leasing arrangements to which it is a party.

    (IAS 17, Para 48)

O. Lease—Substance of the Transaction Involving the Legal Form

  1. All aspects of an arrangement that does not, in substance, involve a lease under IAS 17 should be considered in determining the appropriate disclosures that are necessary to understand the arrangement and the accounting treatment adopted. An enterprise should disclose the following in each period that an arrangement exists:

    1. A description of the arrangement including

      1. The underlying asset and any restrictions on its use;

      2. The life and other significant terms of the arrangement;

      3. The transactions that are linked together, including any options; and

    2. The accounting treatment applied to any fee received;

    3. The amount of fees recognized as income in the period; and

    4. The line item of the income statement in which the fee income is included.

    (SIC 27, Para 10)

  2. The disclosures required in accordance with SIC 27, paragraph 10, above, should be provided individually for each arrangement or in aggregate for each class of arrangement. (A "class" is a grouping of arrangements with underlying assets of a similar nature [e.g., power plants]).

    (SIC 27, Para 11)

P. Stockholders' Equity

The following disclosures should be made by an enterprise either on the face of the balance sheet or in the notes:

  1. For each class of share capital

    1. The number of shares authorized;

    2. The number of shares issued and fully paid, and issued but not fully paid;

    3. Par value per share, or the fact that the shares have no par value;

    4. A reconciliation of the number of shares outstanding at the beginning of the year to the number of shares outstanding at the end of the year;

    5. The rights, preferences and restrictions attaching to each class of shares, including restrictions on the distribution of dividends and the repayment of capital;

    6. Shares reserved for future issuance under options and sales contracts, including terms and amounts; and

    7. Shares held by the enterprise itself or by subsidiaries or associates of the enterprise;

  2. For reserves within the owners' equity, a description, nature, and purpose of each reserve;

  3. For proposed dividends (i.e., those that have not formally been approved for payment) the amount included (or not included) in liabilities; and

  4. For cumulative preference dividends, the amount not recognized.

(An enterprise without share capital, such as a partnership, should disclose information equivalent to that required above, showing movements during the year in each category of equity interest and the rights, preferences, and restrictions attaching to each category of equity interest.)

(IAS 1, Para 74)

  1. Treasury shares require the following disclosures:

    1. The amount of reductions to equity for treasury shares should be disclosed separately. This disclosure could either be on the face of the balance sheet or in the notes to the financial statements.

    2. Where the enterprise, or its subsidiary, reacquires its own shares from parties able to control or exercise significant influence over the enterprise, this should be disclosed as a related-party transaction under IAS 24.

      (SIC 16)

  2. Transaction costs of issuing equity instruments or of acquiring them should be accounted for as a deduction from equity and separately disclosed. The related income taxes recognized directly in equity should also be included in the disclosure of the aggregate amount of current and deferred income tax credited or charged to equity.

    (SIC 17)