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Thursday 25 August 2016

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Disclosure Initiative

Disclosure Initiative


 Disclosure Initiative

Objective

 

The Board is undertaking a broad-based initiative to explore how disclosures in IFRS financial reporting can be improved.

 

This initiative has been informed by a Discussion Forum on Disclosure in Financial Reporting that was held in January 2013. In conjunction with this, the IASB staff also conducted a survey. A Feedback Statement on these events was published in May 2013.

 

The Disclosure Initiative is made up of a number of implementation and research projects. The projects are shown below.

 

Implementation projects

 

Project Overview
Proposed amendments to IAS 8 (Distinction between a change in 
accounting policy and
a change in accounting estimate)

The Board is exploring amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to clarify the definitions of a change in accounting policy and a change in accounting estimate.

Next steps: Discussions on these proposed amendments are continuing with the aim of publishing an Exposure Draft by the end of 2016.

For more information, visit the Proposed Amendments to IAS 8 (Distinction between a change in accounting policy and a change in accounting estimate).

Materiality

In this project the Board is considering how materiality is applied in practice in IFRS financial statements. The Board has tentatively decided to provide guidance on the application of materiality, which will take the form of a Practice Statement. In April 2015 the Board tentatively decided that the Principles of Disclosure Discussion Paper< should include a discussion on whether the definition of materiality should be changed and whether IAS 1 Presentation of Financial Statements should include additional guidance that clarifies the key characteristics of materiality.

Current step: In October 2015 the Board published on an Exposure Draft: IFRS Practice Statement Application of Materiality to Financial Statements to obtain feedback from parties with an interest in financial reporting.

Next steps: The Board will consider the comments received on the Draft Practice Statement and then develop the final guidance. The aim is to publish the finalised Practice Statement in the first quarter of 2017.

For more information, visit the Materiality project page.

 

 

Research projects

 

Project Overview
Principles of Disclosure

The objective of this research project is to identify and develop a set of principles for disclosure that could form the basis of a Standards-level project. The focus is on reviewing the general requirements in IAS 1 Presentation of Financial Statements, and considering how they may be revised.

Next steps: the Board aims to publish a Discussion Paper in the second half of 2016.

For more information, visit the Principles of Disclosure project page.

Standards-level review of disclosures

The objective of this project is to develop a drafting guide for the Board to use when setting disclosure requirements in new and amended Standards. The project may also identify targeted improvements to disclosure requirements in existing Standards.

Next steps: the Board will discuss this project in its meetings. This project will also be partially informed by the principles being developed in the Principles of Disclosure (PoD) project. As a first step the Board is planning to include, as an Appendix to the PoD Discussion Paper, an example of how two existing Standards could be re-drafted. The purpose of this example is to demonstrate and obtain feedback on how a set of principles could be used to draft disclosures requirements.

Visit the Standards-level review of disclosures requirements project page.

 

 

Completed projects

 

Project Overview
Amendments to IAS 1

In December 2014 the IASB published the final Standard Disclosure Initiative (Amendments to IAS 1). These amendments to IAS 1 Presentation of Financial Statements address some of the concerns expressed about existing presentation and disclosure requirements and ensure that entities are able to use judgement when applying IAS 1.

The final Standard Disclosure Initiative (Amendments to IAS 1) is effective for annual periods beginning on or after 1 January 2016 with earlier application permitted.

For more information, visit the Amendments to IAS 1 project page.

Amendments to IAS 7

In January 2016 the IASB published the final Standard Disclosure Initiative (Amendments to IAS 7—2016).These amendments to IAS 7 Statement of Cash Flows require a disclosure of changes in liabilities arising from financing activities, including changes arising from cash flows and non-cash changes. The final Standard Disclosure Initiative (Amendments to IAS 7) is effective for annual periods beginning on or after 1 January 2017.

For more information, visit the Amendments to IAS 7 project page.