Skip to content (Press enter)
Show Sections

Current stage

In March 2021, the International Accounting Standards Board (IASB) published the Exposure Draft Disclosure Requirements in IFRS Standards—A Pilot Approach. The Exposure Draft sets out a proposed new approach to developing and drafting disclosure requirements in IFRS Accounting Standards as well as new disclosure requirements for IFRS 13 Fair Value Measurement and IAS 19 Employee Benefits. The comment period for the Exposure Draft ended in January 2022.

During the comment period, 50 companies participated in fieldwork by applying the proposed disclosure requirements for either or both of IFRS 13 and IAS 19. At its meeting in February 2022, the IASB discussed feedback from preparer fieldwork participants and users of financial statements. In May 2022, the IASB discussed feedback provided in comment letters on the Exposure Draft as well as preliminary views on the next steps for this project.

IASB® Update October 2022

The IASB met on 18 October 2022 to decide what actions to take on the Targeted Standards-level Review of Disclosures project based on the feedback on the Exposure Draft Disclosure Requirements in IFRS Standards—A Pilot Approach.

Guidance for the Board (Agenda Papers 11A and 11B)

The IASB decided:

  1. to use the methods proposed in the Exposure Draft for developing disclosure requirements. Ten of 11 IASB members agreed with this decision.
  2. to use a ‘middle-ground’ approach to drafting disclosure requirements. All 11 IASB members agreed with this decision.
  3. that the ‘middle-ground’ approach would involve:
    1. providing context-setting, non-prescriptive overall disclosure objectives that describe the overall information needs of users of financial statements. All 11 IASB members agreed with this decision.
    2. not including a cross-reference to paragraph 31 of IAS 1 Presentation of Financial Statements at the beginning of the disclosure section of each IFRS Accounting Standard. Nine of 11 IASB members agreed with this decision.
    3. requiring an entity to comply with specific disclosure objectives that describe the detailed information needs of users of financial statements. All 11 IASB members agreed with this decision.
    4. supporting a specific disclosure objective with explanations of the assessments that users make that rely on information an entity discloses by applying the specific disclosure objective. All 11 IASB members agreed with this decision.
    5. using prescriptive language when referring to items of information that an entity is required to disclose to meet a specific disclosure objective, subject to the requirements of paragraph 31 of IAS 1. All 11 IASB members agreed with this decision.
  4. to document the methods for developing disclosure requirements and the approach to drafting them (Guidance for the Board) and publish the document on the IFRS Foundation website. Ten of 11 IASB members agreed with this decision.

Proposed amendments to IFRS 13 Fair Value Measurement and IAS 19 Employee Benefits (Agenda Paper 11C)

The IASB decided not to proceed with any further work on the disclosure requirements in IFRS 13 Fair Value Measurement and IAS 19 Employee Benefits.

All 11 IASB members agreed with this decision.

Next milestone

Project Summary