DATE: Wednesday, December 3, 2014
TO: All Members
In executing the function of promoting standards of professional competence and practice amongst members of the Institute as entrenched in the Accountant Acts 2008, the Institute has today issued the General Purpose Illustrative Financial statement [Full IFRS] (Kenya Limited 2014 – PSC/TR003/2014) and the Illustrative Financial Statements [IFRS for SMEs] (Kenya SME Limited 2014 – PSC/TR004/2014) for the annual reports and financial statements with year ending 31 December 2014. The specimen General Purpose financial statements have been prepared by the professional Standard committee (PSC), whose membership is drawn from audit practitioners, corporate and regulators with an interest in the professional standards.
The illustrative financial statements have been updated to reflect the changes in International Financial Reporting Standards IFRSs that are effective for the period beginning on 1 January 2014, (Summarized in the appendix to the Illustrative Financial Statements 2014). The illustrative financial statements provides a general guide by outlining the minimum expectations and therefore we encourage the preparers of financial statement to provide additional information relevant to understanding by the user of financial statements and ensure compliance with all applicable International Financial Reporting Standards and other reporting requirements. Areas that are deemed specialized have not been addressed in these documents (Highlighted in Note 2 and the introduction) and therefore preparers of financial statements should make reference to respective standards in the format applicable for period beginning 1 January 2014.
The illustrative financial statements are available for download below.
Disclaimer: While developing these Illustrative Financial Statements, reasonable care has been taken in the interpretation of the International Financial Reporting Standards (IFRSs), IFRS for SMEs and reporting requirements of the Kenyan Companies Act. However, the ultimate responsibility on the form of presentation rests with the preparers of financial statements. The Institute does not accept responsibility for loss caused to any person who acts or refrains from acting on reliance on the information in this document.