AFS Review Checklist

​Reviewing financial statements for compliance with International Financial Reporting Standards (IFRS) requires a systematic approach to ensure all aspects of the standards are adequately addressed. Here is a detailed checklist:

1. **Framework Compliance:**

   - Ensure the financial statements are prepared under the assumption of a going concern.

   - Confirm that the financial statements present a fair and true view of the company's financial position.

2. **Statement of Financial Position (Balance Sheet):**

   - Check if assets, liabilities, and equity are correctly classified and measured.

   - Verify the presentation of current and non-current assets and liabilities.

   - Review for proper disclosure of intangible assets and goodwill.

3. **Statement of Profit or Loss and Other Comprehensive Income:**

   - Confirm the appropriate recognition of revenue and expenses.

   - Check for proper classification of items in other comprehensive income.

   - Ensure correct reporting of earnings per share (if applicable).

4. **Statement of Changes in Equity:**

   - Review changes in equity, including retained earnings and other reserves.

   - Ensure proper disclosure of movements in share capital and treasury shares.

5. **Statement of Cash Flows:**

   - Verify accurate categorization of cash flows (operating, investing, financing).

   - Confirm the method used for reporting cash flows (direct or indirect).

6. **Notes to Financial Statements:**

   - Ensure detailed and clear notes are provided, explaining the accounting policies.

   - Check for adequate disclosure of financial instruments, risks, and uncertainties.

   - Review notes for information on property, plant, and equipment, including depreciation methods and rates.

7. **Consolidation and Joint Arrangements:**

   - Confirm compliance with IFRS 10 for consolidated financial statements.

   - Review joint arrangements for compliance with IFRS 11.

8. **Fair Value Measurement:**

   - Verify if fair value measurement (IFRS 13) is appropriately applied and disclosed.

9. **Employee Benefits:**

   - Check for compliance with IAS 19 in terms of pension plans and other employee benefits.

10. **Income Taxes:**

    - Review the treatment and disclosure of income taxes (IAS 12) for deferred and current tax.

11. **Foreign Exchange Rates:**

    - Ensure correct translation of foreign currency transactions and foreign operations (IAS 21).

12. **Events After the Reporting Period:**

    - Review for proper accounting and disclosure of events after the reporting period (IAS 10).

13. **Segment Reporting:**

    - If applicable, check for compliance with segment reporting requirements (IFRS 8).

14. **Leases:**

    - Review lease agreements and their treatment in compliance with IFRS 16.

15. **Impairment of Assets:**

    - Ensure compliance with IAS 36, especially the impairment testing of non-financial assets.

16. **Revenue Recognition:**

    - Verify if revenue recognition (IFRS 15) is consistent with the standard's requirements.

17. **Comparative Information:**

    - Check for the provision of comparative information for the preceding period.

18. **Materiality and Aggregation:**

    - Review the financial statements for appropriate levels of materiality and aggregation.

19. **Cross-Referencing:**

    - Ensure that cross-referencing within the financial statements is accurate and helpful for understanding.

This checklist is not exhaustive and should be adapted based on the specific circumstances and operations of the business being reviewed. It's also advisable to stay updated on any changes or updates in IFRS standards.