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The International Accounting Standards Board (IASB) has completed redeliberations of the proposals in the Exposure Draft General Presentation and Disclosures published in December 2019. The IASB expects to publish the new IFRS Accounting Standard in H1 2024 after completing the balloting process. The objective of the new IFRS Accounting Standard is to improve how information is communicated in the financial statements, with a focus on information in the statement of profit or loss. 

IASB® Update July 2023

The IASB met on 26 July 2023 to discuss in relation to the prospective IFRS Accounting Standard (Standard):

  • re-exposure criteria (Agenda Paper 21A);
  • transition and effective date (Agenda Paper 21B); and
  • due process requirements (Agenda Paper 21C).

The Standard will replace IAS 1 Presentation of Financial Statements.

Consideration of the re-exposure criteria (Agenda Paper 21A)

The IASB considered the re-exposure criteria in the Due Process Handbook. The IASB decided to issue the Standard without re-exposing the proposals.

All 14 IASB members agreed with this decision.

Transition and effective date (Agenda Paper 21B)

The IASB tentatively decided:

  1. to require an entity to apply the Standard for annual periods beginning on or after 1 January 2027.
    Twelve of 14 IASB members agreed with this decision.
  2. to confirm the proposal in the Exposure Draft to require an entity to apply the Standard retrospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.
    All 14 IASB members agreed with this decision.
  3. to confirm the proposal in the Exposure Draft to require an entity to present each of the required headings and subtotals in the Standard in its condensed interim financial statements in the first year of applying the Standard. This requirement would also apply to a first-time adopter of IFRS Accounting Standards.
    All 14 IASB members agreed with this decision.
  4. to require an entity in the first year of applying the Standard to disclose a reconciliation between each line item in the statement of profit or loss presented by applying IAS 1 and each line item presented by applying the Standard. This disclosure would replace the disclosure required in paragraph 28(f) of IAS 8 and would be:
    1. required for the comparative period immediately preceding the period in which the Standard is first applied;
    2. permitted but not required for the reporting period in which the Standard is first applied; and
    3. permitted but not required for comparative periods presented other than the comparative period specified in subparagraph (i).
      All 14 IASB members agreed with this decision.
  5. subject to drafting, to require an entity to disclose the reconciliation described in (d)(i) for line items in the statement of profit or loss presented in interim financial statements for interim periods in the first year of applying the Stadard.
    Eleven of 14 IASB members agreed with this decision.

The IASB also decided to consider whether to provide transitional relief from restating amounts presented for additional comparative periods.

Due process requirements (Agenda Paper 21C)

All 14 IASB members confirmed they were satisfied the IASB has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the Standard. No members indicated that they intend to dissent from issuing the Standard.

Next milestone

IFRS Accounting Standard