Which Financial Statements Are Prepared Under IFRS?

IFRS requires four core financial statements plus comparative figures and required disclosures in the notes.

What’s happening under IFRS?

IFRS keeps things consistent across companies and over time. The core statements are spelled out in IAS 1 Presentation of Financial Statements. Each one has a clear job: show where you stand financially, how you performed, how equity changed, and where cash came from or went. You also need last period’s numbers—unless you qualify for an exemption.

You assemble the statements by generating the Statement of Financial Position, Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Equity, and Statement of Cash Flows, then gathering required disclosures in the notes.

How do I actually put these statements together?

1. Build the Statement of Financial Position (Balance Sheet)
   1. Open your accounting system and go to Reports → Financial Statements → Balance Sheet (that’s the SAP ERP 2026 v11.2 menu path).
   2. Pick your Reporting Date—say, 31-Dec-2025.
   3. Check Include Comparative so you pull in 31-Dec-2024 figures.
   4. Export to Excel or PDF, then double-check that assets, liabilities, and equity are labeled correctly.
   5. Run a quick sanity check: use Tools → Reconcile → Balance Sheet to make sure the totals match your trial balance.
2. Put together the Statement of Profit or Loss and Other Comprehensive Income
   1. Head to Reports → Financial Statements → Income Statement.
   2. Make sure you’re looking at the Comprehensive Income view, not just the profit-or-loss shortcut.
   3. Set your date range (e.g., 01-Jan-2025 to 31-Dec-2025).
   4. Confirm revenue, cost of sales, other income, finance costs, and tax expense are all broken out clearly.
   5. If you have earnings per share, drop in both basic and diluted EPS at the bottom.
3. Draft the Statement of Changes in Equity
   1. Open Reports → Financial Statements → Equity Changes.
   2. Use the same reporting period you just used for the other statements.
   3. Fill in the opening balance, the year’s comprehensive income, any dividends paid, and any new share capital issued.
   4. Make sure the ending balances tie back to the equity section of the Statement of Financial Position.
   5. Label everything: share capital, retained earnings, other reserves, non-controlling interests—no guesswork.
4. Generate the Statement of Cash Flows
   1. Go to Reports → Cash Management → Cash Flow Statement.
   2. Stick with the indirect method unless your policy says otherwise.
   3. Populate the operating, investing, and financing sections, and include the comparative figures.
   4. Attach a note that reconciles profit before tax to net cash from operations.
   5. Cross-check the net increase or decrease in cash against the cash line in the Statement of Financial Position—no surprises allowed.
5. Gather the notes and disclosures
   1. Use the Disclosure Management → IFRS Checklist 2026 auto-template.
   2. Tick off every required disclosure: accounting policies, contingent liabilities, related-party transactions, segment information.
   3. Where it makes sense, add a line-by-line comparison to last period’s notes.
   4. Include management commentary on risks, uncertainties, and anything that happened after the balance sheet date.

If comparative figures are missing, re-run each statement and ensure “Include Prior Period” is ticked and the date-range filter aligns with last year’s fiscal year-end.

What if something goes wrong?

• Comparative figures missing? Re-run each statement and make sure you’ve ticked Include Prior Period. If they still don’t show up, check that your date-range filter lines up with last year’s fiscal year-end.
• Equity reconciliation failing? Pull the equity movements into Excel, sort by account, and manually remap everything to the equity ledger. Then reload the corrected file via Journal Import → Equity Adjustments.
• Cash-flow indirect method mismatch? Recalculate the depreciation add-back using the fixed-asset register for the period. Then verify that movements in working capital actually match the balance-sheet changes.

To prevent last-minute scrambles, set a monthly recurring task in your ERP to validate the IFRS checklist, create a template folder for reuse, and run quarterly dry-run closes.

How can I keep this from becoming a last-minute scramble?

• Set a monthly recurring task in your ERP (SAP, Oracle Fusion 2026, etc.) to Validate IFRS Checklist. Flag any missing disclosures with a red alert before month-end close—no surprises.
• Create a template folder called IFRS 2026 – Complete Set. Keep pre-formatted Word and Excel shells in there and reuse the same folder structure next year so everything stays consistent.
• Run a quarterly dry-run close using last year’s final statements. It’s the fastest way to catch schema changes early. Schedule a 30-minute sit-down with your finance systems administrator to update chart-of-accounts mapping if needed.

The IFRS standards governing these statements are IAS 1, IAS 7, IAS 8, and IAS 10.

Which IFRS standards govern these statements?

The core framework lives in IAS 1 Presentation of Financial Statements. Specific line items and disclosures are sprinkled across other standards: IAS 7 Statement of Cash Flows, IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, and IAS 10 Events after the Reporting Period. Honestly, this is the best place to start if you want to keep everything compliant.

A complete set under IFRS includes the Statement of Financial Position, Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Equity, Statement of Cash Flows, and the notes—with comparative figures for the prior period.

What counts as a “complete set” under IFRS?

A complete set includes the Statement of Financial Position, Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Equity, Statement of Cash Flows, and the notes—with comparative figures for the prior period. If you’re missing any of these, regulators will flag it.

In most cases, yes—IFRS requires prior-period comparative figures unless a specific exemption applies.

Do I always need comparative figures?

In most cases, yes. IFRS wants you to show the prior period unless a specific exemption applies. That way users can see how your financial position and performance have changed over time.

No—IFRS requires all four core statements plus the notes; presenting only the Statement of Profit or Loss is not compliant.

Can I present just the Statement of Profit or Loss?

No. A complete set means all four core statements plus the notes. If you only show the profit-or-loss statement, you’re not IFRS-compliant.

The Statement of Profit or Loss shows day-to-day revenues and expenses, while other comprehensive income captures items that bypass the income statement, such as revaluation surpluses or foreign-currency hedges.

What’s the difference between profit or loss and other comprehensive income?

The Statement of Profit or Loss shows your day-to-day revenues and expenses. The “other comprehensive income” section captures items that bypass the income statement—like revaluation surpluses on property or foreign-currency hedges—so users see the full picture.

The notes must include accounting policies, contingent liabilities, related-party transactions, segment information, and anything else that could influence user decisions.

How detailed do the notes need to be?

Pretty detailed. You’ll need accounting policies, contingent liabilities, related-party transactions, segment information, and anything else that could influence a user’s decisions. The IFRS Checklist 2026 auto-template can save you hours here.

Technically yes, but the indirect method is the default; switch to direct only if your accounting policy explicitly requires it.

Can I use the direct method for the cash-flow statement?

Technically, yes—but the indirect method is the default. Switch to direct only if your accounting policy explicitly requires it. Most companies stick with indirect because it’s simpler to reconcile to the profit-or-loss statement.

Regulators and auditors will flag missing disclosures, which can lead to compliance issues or restatements; monthly IFRS checklist validation prevents this.

What happens if I miss a required disclosure?

Regulators and auditors will flag it. In the worst case, you could face compliance issues or restatements. That’s why the monthly IFRS checklist validation is so useful—it catches missing disclosures before they become problems.

Start with the opening equity balance, add comprehensive income for the year, subtract dividends paid, and add any new share capital issued; the ending balance must match the equity line in the Statement of Financial Position.

How do I reconcile equity changes to the balance sheet?

Start with the opening equity balance, add comprehensive income for the year, subtract dividends paid, and add any new share capital issued. The ending balance should match the equity line in your Statement of Financial Position. If it doesn’t, you’ve got a mapping error somewhere.

The easiest way is to build a template folder called “IFRS 2026 – Complete Set,” keep the same folder structure and file names each year, and swap in new numbers.

What’s the easiest way to keep everything consistent year over year?

Build a template folder called IFRS 2026 – Complete Set. Keep the same folder structure and file names each year. It takes an hour to set up once, and then you just swap in the new numbers—no reformatting headaches.

IFRS.org publishes illustrative examples and disclosure checklists; most ERP systems include built-in IFRS report templates you can adapt.

Where can I find the official IFRS templates?

You won’t find a single “official template,” but IFRS.org publishes illustrative examples and disclosure checklists. Most ERP systems (SAP, Oracle, etc.) also include built-in IFRS report templates you can adapt.

The fastest way is to run a quarterly dry-run close using last year’s final statements; it surfaces schema changes, mapping issues, or missing disclosures early.

What’s the fastest way to spot errors before regulators do?

Run a quarterly dry-run close using last year’s final statements. It only takes 30 minutes, and it surfaces schema changes, mapping issues, or missing disclosures early. Schedule a quick review with your finance systems administrator afterward—it’s the cheapest insurance policy you’ll ever buy.

What are the different types of financial statements as per IFRS 1?

• three statements of financial position.
• two statements of profit or loss and other comprehensive income.
• two separate statements of profit or loss (if presented)
• two statements of cash flows.
• two statements of changes in equity, and.
• related notes, including comparative information.

Which financial statements are prepared under Ind AS?

• Balance Sheet. Statement of profit.
• and loss. Statement of.
• changes in equity. Cash Flow.
• Statement. Notes.

What statements are prepared under financial statements?

• Income Statement.
• Statement of Retained Earnings – also called Statement of Owners’ Equity.
• The Balance Sheet.
• The Statement of Cash Flows.

What are the four types of prepared financial statements?

There are four main financial statements. They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders’ equity . Balance sheets show what a company owns and what it owes at a fixed point in time.

What are the contents of IFRS financial statements?

The standard requires a complete set of financial statements to comprise a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity and a statement of cash flows .

What are the 5 methods of financial statement analysis?

Tools and techniques of financial statement analysis

Trend Ratios or Trend Analysis . Average Analysis. Statement of Changes in Working Capital. Fund Flow Analysis.

What are the components of financial statements as per ind as 1?

Components of financial statements

The balance sheet at the end of the period. Statement of profit and loss for the period. Statement of changes in equity for the period. Statement of cash flows for the period.

What is complete set of financial statements as per ind as 1?

Other IND AS set out recognition, measurement and disclosure requirements of specific transactions and events • IND AS 1 prescribes the basis for presentation of financial statements to ensure comparability both with: Entity’s own financial statements of previous periods; and Financial Statements of other entities .

Is IND as applicable to private companies?

If IND AS becomes applicable to any company, then IND AS shall automatically be made applicable to all the subsidiaries , holding companies, associated companies, and joint ventures of that company, irrespective of individual qualification of such companies.

When must financial statements be prepared?

Some companies prepare financial statements monthly to keep a tight handle on the financial position of the firm. Other companies have longer accounting cycles. Financial statements must be prepared at the end of the company’s tax year .

What are financial statements examples?

The first of our financial statements examples is the cash flow statement . The cash flow statement shows the changes in a company’s cash position during a fiscal period. The cash flow statement uses the net income. While it is arrived at through figure from the income statement and adjusts it for non-cash expenses.

What are the 6 basic financial statements?

They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders’ equity . Balance sheets show what a company owns and what it owes at a fixed point in time.

What is the single most important item in the financial statements?

Many experts consider the top line, or cash , the most important item on a company’s balance sheet. Other critical items include accounts receivable, short-term investments, property, plant, and equipment, and major liability items. The big three categories on any balance sheet are assets, liabilities, and equity.

Which financial statement is prepared first?

The financial statement prepared first is your income statement . As you know by now, the income statement breaks down all of your company’s revenues and expenses. You need your income statement first because it gives you the necessary information to generate other financial statements.

What is the basis for financial reports?

The basic financial statements of an enterprise include the 1) balance sheet (or statement of financial position), 2) income statement, 3) cash flow statement, and 4) statement of changes in owners’ equity or stockholders’ equity. The balance sheet provides a snapshot of an entity as of a particular date.