The software automatically populates the 'Headers' based on Setup and Settings selections.
Page header - prominent display
- the identification of the entity to which the report belongs;
- the section name; and
- the financial period.
Page header - entity trading name and former name (where applicable)
If applicable, the entity’s trading name and former name is included on at least the cover page of the financial report. Consider also presenting the entity’s trading name and former name within each page’s header, under the entity’s name. Pursuant to IAS 1 (51)(a), display of a trading name is not mandatory, however any former entity name that was applicable in the preceding reporting period must be prominently displayed; and repeat it where necessary.
Consider the following formats:
Pinnacle Listed Practical Limited
Trading as Custom Computers
(Formerly known as Pinnacle Company Pty Limited)
Pinnacle Listed Practical Limited
Trading as Custom Computers
Pinnacle Listed Practical Limited
(Formerly known as Pinnacle Company Pty Limited)
Page header - period
Where the financial period is not a full year, the headers in the 'Financial report contents', 'Statement of profit or loss and other comprehensive income', 'Statement of changes in equity' and 'Statement of cash flows' should be changed to:
- For the period ended 31 December 2023
Page header - use of terms 'and its controlled entities' or 'and its subsidiaries'
An entity name suffix for the page headers can be added in Entity name suffix in Setup. However, this is not recommended, as shown in Example Financial Statements, the page header states 'Pinnacle Pty Limited' instead of 'Pinnacle Pty Limited and its controlled entities' or 'Pinnacle Pty Limited and its subsidiaries'.
Consider avoiding the addition of 'and its controlled entities' or 'and its subsidiaries' in the page header for the following reasons:
- The financial report is a report of the parent entity and its legal name as identified by the regulator should be used;
- When it is a report of a consolidated entity, the word 'Consolidated' is stated at the top of each table including the primary statements and clearly identified;
- At the start of the directors' report, the consolidated entity is clearly identified;
- In the general information section of the financial report, the consolidated entity is clearly identified;
- There is a subsidiaries note included within the notes to the financial statements; and
- Throughout the report the consolidated entity is referred to as the 'consolidated entity' or 'group' and the parent entity as either the 'company' or 'parent entity'.
Page header - use of 'Consolidated'
A prefix for the primary statement names can be added in Statement name prefix in Settings. However, this is not recommended, as to retain consistency in formats and headers between single entity only, consolidated entity only and those reports that present both the parent entity and consolidated entity, where only a consolidated entity is presented, the word 'Consolidated' appears in the table headers rather than renaming the statements such as 'Consolidated statement of profit or loss and other comprehensive income', 'Consolidated statement of financial position', 'Consolidated statement of changes in equity' and 'Consolidated statement of cash flows'.
Page header - use of 'Condensed' (interim financial statements only)
A prefix can be added for the primary statement names in Statement name prefix in Settings. However, this is not recommended, as to retain consistency in formats between interim and annual reports, no line items have been omitted (even if permitted by IAS 34 'Interim Financial Reporting') from the primary statements of the interim financial statements. Therefore, naming conventions within the financial statements that incorporate use of the term 'condensed', such as 'Condensed statement of profit or loss and other comprehensive income', 'Condensed statement of financial position', 'Condensed statement of changes in equity' and 'Condensed statement of cash flows' have not been used and would be technically incorrect as there has not been any 'condensing' of the statements presented.
Technical notes - clarification over the use of 'condensed'
There is a common misconception that the term 'condensed' should be automatically applied to interim reports as they contain 'condensed notes'. However, IAS 34 'Interim Financial Reporting' defines an interim financial report as 'a financial report containing either a complete set of financial statements (as described in IAS 1 'Presentation of Financial Statements') or a set of condensed financial statements (as described in this Standard) for an interim period.'. It also defines 'the minimum content of an interim financial report as including condensed financial statements and selected explanatory notes'.
Therefore, the word 'condensed' refers to the four primary statements (statement of profit or loss and other comprehensive income, statement of financial position, statement of changes in equity and statement of cash flows) and the fact that you can omit certain lines if they are condensed, such as expenses or assets, but you must have each of the headings and subtotals that were included in the most recent annual financial statements.
In regard to the notes to the financial statements, these are 'selected explanatory notes' and by not having a full complement of notes in any way requires reference to 'condensed'.
The four primary statements illustrated are not condensed and as such no reference to 'condensed' is made in the report.
Page header - Notes to the financial statements - methods to avoid
As illustrated, 'Notes to the financial statements' employs headers for each table. Consider the following:
- Leave the header date simply as '31 December 2023' rather than 'For the year ended 31 December 2023' or 'As at 31 December 2023' as there is a mixture of statement of profit or loss and other comprehensive income and statement of financial position items
- Leave the table headers rather than putting a generic 'year and $' header at the top of each page as: (a) more often than not paragraphs cut across these headers; and (b) as noted below, where the financial period is not a full year, consider changing the period header in each table
Table header - entity
- Tables are used extensively throughout financial statements in the presentation of financial information relating to the entity's financial position and performance
- The use of the table header 'Consolidated' could be replaced with 'Consolidated entity', 'Group' or the name of the group
- The table header 'Parent' could be replaced with 'Parent entity', 'Company' or the name of the entity
- However, the terminology selected should be consistent throughout the report
Table header - period
Where the financial period is not a full year, consider changing the period (not as at) header to:
- For the period from 1 October 2023 to 31 December 2023