Principles of Disclosure discussion paper aims to contribute to better communication
The IASB has made better communication in financial reporting a central theme for the next five years. To that end, the Board is focusing on its Disclosure initiative and its project on Primary Financial Statements.
Its long-awaited discussion paper (DP) Principles of Disclosure (PoD) – which is a significant milestone in the Disclosure initiative – is relevant to all stakeholders involved in financial reporting: investors, preparers, regulators, auditors and the IASB in its role as the standard-setter.
“To achieve better communication, the real ask is for behavioural change. The IASB’s role is to act as a facilitator, encouraging preparers to use their judgement to provide information that is more relevant to the needs of users of financial statements.”
KPMG’s global IFRS presentation leader
The main objective of the PoD project is to identify current issues with disclosures and develop principles in IFRS to address them.
Together with the revised Conceptual Framework expected to be issued later in 2017, it lays the foundation for improved IFRS disclosures.
The project is no small task. Stakeholder expectations are high and often conflicting – while some want to see more information, others want less. To master the challenge of addressng disclosure issues, the Board is seeking input on the scope and direction of the project.
The PoD DP aims to help preparers judge what
information to disclose in financial statements and how best to disclose it.
The IASB has identified three main concerns it would like to address:
A full list of the discussion points that the IASB is seeking feedback on can be
At this stage of the project, the final deliverable has not yet
been defined, but the options include:
The DP is also being used by the IASB as a means to gather
feedback informing other projects, such as:
Stakeholders expect the PoD project to address a number of controversial issues and provide a solid foundation to solve the ‘disclosure problem’.
Therefore, it is vital that all stakeholders contribute to the discussion by sharing their views about which disclosure issues the Board should focus on and how they should be tackled.
Comments are due to the IASB by 2 October 2017. Don’t miss this opportunity to join the debate and make your views heard.
||Discussion points that the
IASB is seeking your feedback on
|1. Overview of
and objective of
|2. Principles ofeffective communication||
|4. Location of information||
|5. Use of performance measures in the financial statements||
|6. Disclosures of
|7. Centralised disclosure objectives||
|8. New Zealand ASB staff’s approach to drafting IFRS disclosure requirements||
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