2021 Example Financial Statements

1 With guidance notesIFRS Example Consolidated Financial Statements 2021 GlobalAssuranceIFRSI mportant Disclaimer:This document has been developed as an information resource. It is intended as a guide only and the application of its contents to specific situations will depend on the particular circumstances involved. While every care is taken in its presentation, personnel who use this document to assist in evaluating compliance with International Financial Reporting Standards should have sufficient training and experience to do so. No person should act specifically on the basis of the material contained herein without considering and taking professional advice.

2 Grant Thornton refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton International Ltd (GTIL) and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another s acts or omissions.

3 Neither GTIL nor any of its personnel nor any of its member firms or their partners or employees, accept any responsibility for any errors this document might contain, whether caused by negligence or otherwise, or any loss, howsoever caused, incurred by any person as a result of utilising or otherwise placing any reliance upon 1 ifrs Example Consolidated Financial 4 StatementsConsolidated statement of profit or loss 5 Consolidated statement of comprehensive income 7 Consolidated statement of Financial position 8 Consolidated statement of changes in equity 10 Consolidated statement of cash flows 11 Notes to the ifrs Example Consolidated 12 Financial Statements1 Nature of operations 132 General

4 Information, statement of compliance 13 with ifrs and going concern assumption3 New or revised Standards or Interpretations 144 Significant accounting policies 165 Acquisitions and disposals 376 Interests in subsidiaries 417 Investments accounted for using the 44 equity method8 Revenue 469 Segment reporting 4810 Goodwill 5111 Other intangible assets 5312 Property, plant and equipment 5513 Leases 5714 Investment property 6015 Financial assets and liabilities 6116 Deferred tax assets and liabilities 6817 Inventories 7018 Trade and other receivables 7019 Cash and cash equivalents 7120 Disposal groups classified as held for sale and 72 discontinued operations21 Equity 7322 Employee remuneration 7523 Provisions 8224 Trade and other payables 8325 Contract and other liabilities 8326 Reconciliation of liabilities arising from 84 financing activities27 Finance costs and finance income 8528 Other

5 Financial items 8529 Tax expense 8630 Earnings per share and dividends 8731 Non-cash adjustments and changes in 88 working capital32 Related party transactions 8933 Contingent liabilities 9034 Financial instruments risk 9035 Fair value measurement 9836 Capital management policies and procedures 10337 Events after the reporting date 10438 Authorisation of Financial Statements 104 Appendices to the ifrs Example Consolidated 105 Financial StatementsAppendix A: Organising the statement of profit 106 or loss by function of expensesAppendix B: Statement of comprehensive income 108 presented in a single statementAppendix C: Effective dates of new ifrs Standards 110 Illustrative Corporation Group: ifrs Example Consolidated Financial Statements 1 ifrs Example Consolidated Financial Statements 2021 The preparation of Financial Statements in accordance with International Financial Reporting Standards ( ifrs ) is challenging.

6 Each year, new Standards and amendments are published by the International Accounting Standards Board ( IASB ) with the potential to significantly impact the presentation of a complete set of Financial member firms of Grant Thornton International Ltd ( GTIL ) have extensive expertise in the application of ifrs . GTIL, through its ifrs Team, develops general guidance that supports its member firms commitment to high quality, consistent application of ifrs and is therefore pleased to share our insights by publishing ifrs Example Consolidated Financial Statements 2021 ( Example Financial Statements ).

7 These Example Financial Statements are based on the activities and results of Illustrative Corporation and its subsidiaries ( the Group ) a fictional consulting, service and retail entity that has been preparing ifrs consolidated Financial Statements for several years. The form and content of ifrs Financial Statements will always depend on the activities and transactions of the reporting entity. Our objective in preparing these Example Financial Statements is to illustrate one possible approach to Financial reporting by an entity engaging in transactions that are typical across a range of non-specialist sectors.

8 However, as with any publication of this type, these Example Financial Statements cannot envisage every possible transaction and therefore cannot be regarded as comprehensive. Management as defined by the IASB, is ultimately responsible for the fair presentation of Financial Statements and therefore they may find other approaches more appropriate for its specific Example Financial Statements have been updated to reflect changes in ifrs that are effective for the year ending 31 December 2021. No account has been taken of any new developments after 31 October usWe re a network of independent assurance, tax and advisory firms, made up of 56,000+ people in 140 countries.

9 For more than 100 years, we have helped dynamic organisations realise their strategic ambitions. Whether you re looking to finance growth, manage risk and regulation, optimise your operations or realise stakeholder value, we can help ve got scale, combined with local market understanding. That means we re everywhere you are, as well as where you want to the COVID StoryReporting the impact of COVID-19 global pandemic in the Financial Statements will, for many reporting entities, still be a challenge. Preparers of Financial Statements will need to think about how, where and in what form they should report COVID-19 in their Financial Statements in light of ifrs as they currently exist.

10 We believe it is important to not only comply with the guidance set out in ifrs , but also ensure the Financial Statements are an effective part of any wider communication the entity intends to share with its stakeholders. COVID-19 was the main focus of the Financial Statements for reporting entities in 2020, be it positive or negative, and has continued to remain prominent this year, so Financial Statements with an annual reporting date in 2021 should be prepared with this in Illustrative Corporation Group: ifrs Example Consolidated Financial StatementsUsing the Example Financial StatementsThe Appendices illustrate an alternative presentation of the statement of profit or loss and the statement of comprehensive income and contain an overview of effective dates of new Standards.