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Publication Type: 
Guidance note
Published Date: 
October, 2021

Guidance Note: EITI Requirements 2.6, 4.2, 4.5 and 6.2

Understanding financial statements of state-owned enterprises

This guidance note refers to the 2019 EITI Standard

Download PDF: English


Financial statements provide an overview of the financial performance, financial position and activities of a company in a given period. Companies, including state-owned enterprises (SOEs), usually prepare four main financial statements on a monthly, quarterly and annual basis: the balance sheet, the income statement, the cash flow statement and the statement of shareholders’ equity for the period. These statements, along with documents containing significant accounting policies and other explanatory information, describe a company’s complete financial position.

In accordance with Requirement 2.6.b of the EITI Standard, SOEs are expected to publicly disclose their audited financial statements, or the main financial items where financial statements are not available. These complement the financial disclosures required by the EITI Standard which relate to state participation and SOEs.

This note provides guidance to stakeholders, including EITI multi-stakeholder groups (MSGs), on locating information required by the EITI Standard in the standard financial statements of SOEs. The guidance is based on the assumption that SOE financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the IFRS Foundation and the International Accounting Standards Board (IASB). These aim to set internationally recognised accounting specifications and policies.