Global Standards for the world economy

Tuesday 28 March 2017

Banner graphic

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
Materiality Practice Statement

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.

Current step: In December 2016, the Board completed its redeliberations of the comments received on the Exposure Draft and asked the staff to start balloting the final Practice Statement.

Next steps: The aim is to publish the final Practice Statement in the second quarter of 2017.

For more information, visit the Materiality Practice Statement project page.

Definition of Materiality

The project objective is to refine the definition of materiality and clarify its characteristics (proposed clarifications). The proposed clarifications were originally discussed during the development of the Principles of Disclosure Discussion Paper.

In December 2016, the Board decided to separately publish the proposed clarifications in an Exposure Draft. Consequently, the Definition of Materiality project is now separate from the Principles of Disclosure project.

For more information, visit the Definition of 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 first half of 2017.

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.