The IFRS Foundation has today published IFRS Taxonomy 2018—Proposed Update 1 Common Practice (IFRS 13 Fair Value Measurement) for public consultation. Those proposed changes result from the analysis of reporting practice relating to the disclosure requirements in IFRS 13 Fair Value Measurement.
The common practice elements in the IFRS Taxonomy reflect disclosures that companies applying IFRS Standards often include in their financial statements but that are not explicitly required by the IFRS Standards. Including common practice content in the IFRS Taxonomy enables more consistent tagging of financial statements prepared applying IFRS Standards by reducing the need for companies and regulators to create their own taxonomy elements.
The Proposed IFRS Taxonomy Update 1/2018 includes changes to the IFRS Taxonomy 2018 reflecting common reporting practice for the disclosure requirements in IFRS 13, including:
- sensitivity of fair value measurement to changes in unobservable inputs; and
- quantitative information about significant unobservable inputs used in fair value measurement.
The Proposed IFRS Taxonomy Update 1/2018 is open for comment until 19 November 2018.