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Am I required to separate Trade Payables (inventory) and Expense Payables (overhead/service allocation) on my balance sheet?  My Japanese subsidiary is claiming that this is a requirement.  I need to understand if this is an accurate claim according to IFRS standards or not.  If a specific IFRS standard could be referenced I would appreciate it.
in General IFRS Discussion by

1 Answer

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As per IAS 1.54, the statement of financial position (balance sheet) shall include following line
items at a minimum:
(a) property, plant and equipment;
(b) investment property;
(c) intangible assets;
(d) financial assets (excluding amounts shown under (e), (h) and (i));
(e) investments accounted for using the equity method;
(f) biological assets;
(g) inventories;
(h) trade and other receivables;
(i) cash and cash equivalents;
(j) the total of assets classified as held for sale and assets included in
disposal groups classified as held for sale in accordance with
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations;
(k) trade and other payables;
(l) provisions;
(m) financial liabilities (excluding amounts shown under (k) and (l));
(n) liabilities and assets for current tax, as defined in IAS 12 Income
(o) deferred tax liabilities and deferred tax assets, as defined in IAS 12;
(p) liabilities included in disposal groups classified as held for sale in
accordance with IFRS 5;
(q) non-controlling interests, presented within equity; and
(r) issued capital and reserves attributable to owners of the parent.

As per the information you have given both payables can be included under "trade & other payables" on the face of the balance sheet.

However whether you need to provide the breakup in the notes depends on the judgement of the management.

IAS 1.77 requires "An entity shall disclose, either in the statement of financial position or in the notes, further subclassifications of the line items presented, classified in a manner appropriate to the entity’s operations"  Also note that IAS 1.78 says "the detail provided in subclassifications depends on the requirements of IFRSs and on the size, nature and function of the amounts involved. An entity also uses the factors set out in paragraph 58 to decide the basis of subclassification"
by Level 5 Member (25.6k points)