2020 Interim Disclosure Checklist - kpmg us gaap disclosure checklist

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Disclosure checklist
Guide to condensed interim financial statements IFRS? Standards

April 2020 home.kpmg/ifrs

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Contents

About this guide

1

References and abbreviations

4

The checklist

Form and content

5

Statement of financial position

6

Statement of profit or loss and OCI

6

Statement of changes in equity

6

Statement of cash flows

7

Notes to the interim financial statements

7

General requirements

7

Significant events and transactions

8

Impact of standards issued but not yet effective 9

Segment information

9

Changes in composition of the entity

10

Seasonality

10

Estimates

11

Financial instruments

11

Disaggregation of revenue

14

Subsequent events

14

Other disclosures

14

Appendices

I New standards or amendments for 2020 and

forthcoming requirements

16

II First-time adoption

18

Keeping in touch

20

Content What's new in 2020?

About this guide
This guide has been produced by the KPMG International Standards Group (part of KPMG IFRG Limited).
The guide is intended to help entities to prepare and present condensed consolidated interim financial statements in accordance with IAS 34 Interim Financial Reporting by identifying the potential disclosures required. In addition, it includes the minimum disclosures required in the condensed interim financial statements of a first-time adopter of IFRS Standards.
The disclosure requirements in IAS 34 assume that users of an entity's interim financial statements will have access to the last annual financial statements of that entity. Therefore, the notes to the condensed interim financial statements provide only significant updates to the information that was reported in the notes to the last annual financial statements.
However, the entity has to ensure that the interim financial statements include all information that is relevant to an understanding of its financial position and performance during the interim reporting period. This may result in the disclosure of information beyond the minimum requirements when it is necessary for such an understanding.
Appendix I provides a comprehensive list of all of the new standards, distinguishing between those that are effective for an entity with an annual period beginning on 1 January 2020 and those with a later effective date.
The new or revised standards that become effective for periods beginning on 1 January 2020 (see Appendix I) did not amend any of the existing IAS 34 requirements. As such, there are no new presentation or disclosure requirements that are directly applicable to the preparation of condensed financial statements. Although these standards do not contain specific presentation or disclosure requirements for interim financial statements, additional disclosures may be considered necessary in light of the overall objectives of IAS 34 - i.e. ensuring that the interim financial statements include all information that is relevant to understanding any significant changes since the last annual reporting date, and an entity's financial position and performance during the interim period. In particular, an entity is required to describe the nature and effect of any change in accounting policy as compared with the most recent annual financial statements, which may result in further disclosure, even in condensed financial statements.
This version of the checklist is therefore consistent with the April 2019 edition of the interim Disclosure checklist.
Impacts of COVID-19
Preparers should carefully evaluate and consider the impact of the COVID-19 outbreak on their 2020 interim financial reporting and provide an update of relevant entity-specific disclosures since the last annual reporting date.
Given the rapidly changing economic outlook and trading conditions, information in 2020 interim financial statements may, for many companies, involve more than the usual update since the last annual financial statements.
For relevant guidance, see our COVID-19 financial reporting resource centre, and especially the web article What is the impact of COVID-19 on interim financial statements?

This publication contains copyright material of the IFRS? Foundation in respect of which all rights are reserved. Reproduced by KPMG IFRG Limited with the permission of the IFRS Foundation. No permission granted to third parties to reproduce or distribute. For full access to IFRS Standards and the work of the IFRS Foundation please visit http://eifrs.ifrs.org.

2 | Guide to condensed interim financial statements - Disclosure checklist

Standards covered Need for judgement

For many entities, the 2020 interim financial statements will be the first reporting period in which the impacts of the COVID-19 outbreak are reflected - i.e. it will affect the measurement and recognition of assets and liabilities, income and expenses - so it will be key for entities to provide relevant disclosures. Besides, changes in circumstances may have made significant disclosures included in the recent annual financial statements less relevant. As such, preparers will need to consider providing additional supplementary disclosures in their interim financial statements. For example, entities may need to update and expand disclosures about liquidity - especially compared with what might have been included in previous annual or interim reports.
Investors and other users may expect information above and beyond what is typically disclosed.
This guide is based on standards, amendments and interpretations (broadly referred to in this guide as `standards') that have been issued by the International Accounting Standards Board (the Board) as at 15 April 2020 and that are required to be applied by an entity with an annual reporting period beginning on 1 January 2020 (`currently effective requirements').
This guide contains disclosure requirements specified within IAS 34 that apply to the presentation of condensed interim financial statements. In addition, Appendix II contains relevant requirements of IFRS 1 First-time Adoption of International Financial Reporting Standards that apply to condensed interim financial statements for part of the period covered by the first financial statements under IFRS Standards of a first-time adopter. This guide does not specify the scope of the other standards referred to or their disclosure, recognition and measurement requirements, or explain the terms that are used in the standards and contained in this guide.
In addition, the standards and their interpretation change over time. Accordingly, this guide should not be used as a substitute for referring to their requirements and other relevant interpretative guidance.
Preparers should also consider applicable local legal and regulatory requirements. This guide does not consider the requirements of any particular jurisdiction.
This guide is part of our suite of guides to financial statements and specifically focuses on compliance with the disclosure requirements of IAS 34. The preparation and presentation of financial statements requires the preparer to exercise judgement in view of the objectives of IAS 34 - e.g. in terms of the choice of accounting policies, the ordering of notes to the financial statements, how the disclosures should be tailored to reflect the reporting entity's specific circumstances, and the relevance of disclosures considering the needs of the users.

This publication contains copyright material of the IFRS? Foundation in respect of which all rights are reserved. Reproduced by KPMG IFRG Limited with the permission of the IFRS Foundation. No permission granted to third parties to reproduce or distribute. For full access to IFRS Standards and the work of the IFRS Foundation please visit http://eifrs.ifrs.org.

About this guide | 3

Materiality
Remember the bigger picture

Materiality is relevant to the presentation and disclosure of items in the interim financial statements and should be assessed based on interim period financial information, not the full annual reporting period. The overriding goal is to ensure that an interim financial report includes all information that is relevant to understanding an entity's financial position on the interim reporting date and its financial performance during the interim period.
Preparers also need to take care not to reduce the understandability of their financial statements by obscuring material information with immaterial information or by aggregating material information that is different by nature or function. Individual disclosures that are not material to the financial statements do not have to be presented - even if they are a specific requirement of a standard. Preparers need to consider the appropriate level of disclosure based on materiality for the interim period.
Specific guidance on materiality and its application to interim financial statements is included in paragraphs 23-25 of IAS 34. Paragraphs 84-88 of Practice Statement 2 Making Materiality Judgements provide guidance on applying materiality in the preparation of interim financial statements.
When preparing interim financial statements under IAS 34, preparers need to consider the same materiality factors they consider in preparing their annual financial statements, while taking into consideration that the time period and the purpose of interim financial statements differ from those of annual financial statements. Preparers need to provide an update on the latest compete set of annual financial statements.
Financial reporting is not just about technical compliance, but also effective communication. Investors continue to ask for a step-up in the quality of business reporting, so preparers should be careful not to become buried in compliance to the exclusion of relevance. In preparing their financial statements, entities need to focus on improving their communication by reporting financial information in a meaningful way.
Entities may also consider innovating their financial statement presentation and disclosure in the broader context of better business reporting. For more information, see our Better business reporting website.

This publication contains copyright material of the IFRS? Foundation in respect of which all rights are reserved. Reproduced by KPMG IFRG Limited with the permission of the IFRS Foundation. No permission granted to third parties to reproduce or distribute. For full access to IFRS Standards and the work of the IFRS Foundation please visit http://eifrs.ifrs.org.



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