General Purpose Financial Statement (GPFS) Tier 2

Modified on: Tue, 14 Jan, 2025 at 1:06 PM

Tier 2 Reporting means preparing GPFS applying reduced disclosures (RDR)

There is a general misunderstanding about these reporting requirements and reporting software. There is no such thing as a common GPFS template beyond the requirement for the 4 primary financial reports:

1. CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Balance Sheet showing financial position at period end)

2. CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

(Performance statement showing financial results for the period)

3. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(Movement statement showing changes in shareholders' equity)

4. CONSOLIDATED STATEMENT OF CASH FLOWS

(Movement statement showing cash inflows and outflows)

Tier 2 reporting requirements are primarily about what information must be disclosed and how the accounting for these types of entities must be handled. i.e. tax effect accounting and restated comparatives required when an entity prepares GPFS – Tier 1 (full IFRS) for the first time.

Note: There are no one-size fits all templates because each reporting entity will have different information to report.

LodgeiT does have a powerful and flexible reporting module and we believe it has the potential to allow a report to be built that conforms to the Tier 2 reporting requirements. BUT it will be necessary for the user to learn how to manipulate our reporting software. Also, reports generated from our Financial Report Pro Module carry an additional cost.