Septiembre 2011

Quick guide to most significant differences with respect to IFRSs

The “IFRSs” column reflects the current treatment under IFRSs.



The purpose of this guide is solely to illustrate the main differences between the two sets of legislation. Therefore, it is not an exhaustive list of differences and does not address disclosure issues. In view of their specific nature, industry adaptations for cooperatives and insurance companies are not included.



Presentation of financial statements

The financial statements consist of a balance sheet, an income statement, a statement of changes in equity, a statement of cash flows and notes to the financial statements.
The statement of changes in equity is divided into two parts: a statement of recognised income and expense and a statement of changes in total equity.
The financial statements consist of a balance sheet, a statement of comprehensive income, a statement of changes in equity, a statement of cash flows and the related explanatory notes. Overall, these financial statements are similar to those under the SNCA, but the composition is different.
Under IFRSs, an entity may present all items of income and expense recognised in a period in a single statement or in two statements (an income statement and a statement of comprehensive income). The statement displaying components of other comprehensive income
is equivalent to the statement of recognised income and expense under the SNCA, although under IFRSs it forms part of the statement of comprehensive income and if it is presented separately it must always be presented immediately after the income statement.

The SNCA provides for the possibility of presenting abridged financial statements with less extensive disclosure requirements and the possibility of not presenting a statement of cash flows.
In the balance sheet the current/ non-current distinction is used for assets and liabilities.


The income statement is presented by nature.
The statement of cash flows is presented using the indirect method.
There is no obligation to present a third balance sheet when there are changes in accounting policies, reclassifications or restatements of financial statements.
Such an exemption does not exist and a statement of cash flows must always be presented.
This is the same under IFRSs, but they also provide for the
possibility of presenting assets and liabilities in order of liquidity.
The same under IFRSs, but they also provide for the possibility of presenting income statement items by function.
Under IFRSs the statement of cash flows may also be presented using the direct method.
Under IFRSs a third balance sheet at the beginning of the comparative period must be presented in the event of
changes in accounting policies, retrospective restatement or reclassifications of items.