Full disclosure of financial statements includes:
- a balance sheet;
- an income statement;
- a statement of changes in equity;
- a cash flow statement;
- notes. Which contain a summary of significant accounting policies and other explanatory notes
Minimum information on Consolidated Financial Statement
Minimum information on Balance Sheet
Statement of changes in equity
- Initial value of the share capital, reserves and profits of the previous company;
- Allocation of the previous year’s profits;
- Gains and losses for the current year;
- Indication of income and expenses recognized in equity or transferred from equity to the EC (applying fair value);
- PN Increases / reductions following the change in evaluation criteria or errors;
- Increments from members contributions and decreases for distributions or losses coverage;
- Other changes;
- The effects of purchase / sale of personal shares;
- Final value of share capital, reserves and profits for the year.
Cash flow statement
The cash flow information provides financial statement users with a basis to assess the entity’s ability to generate cash and cash equivalents, and the needs of the entity to utilize those cash flows.
IAS 7 cash flow statement sets out the requirements for the preparation of the financial statements and related disclosures.
- Present information on the basis of preparation of the financial statements and the specific accounting policies used;
- Indicate the information required by IFRSs that is not presented on the balance sheet, income statement, statements relating to changes in equity or cash flow statements;
- Provide additional information that is not presented on the balance sheet, income statement, statements relating to changes in equity or cash flow statements, but relevant to the understanding of any of these.
Corporate case study 1
We use the Mediaset group’s financial statement bilancio 2008 to see the format developed to deal with minority interests and the way they are recorded.
Progetto "Campus Virtuale" dell'Università degli Studi di Napoli Federico II, realizzato con il cofinanziamento dell'Unione europea. Asse V - Società dell'informazione - Obiettivo Operativo 5.1 e-Government ed e-Inclusion