Disclosure initiative — Primary Financial Statements – International Accounting Standards Board

Date recorded:

At its meeting on March 12-14, 2019, the Board discussed (i) whether to add to the required line items in the primary financial statements; and (ii) the definition of and guidance and disclosure requirements for unusual items.

With respect to (i), the Board tentatively decided to require entities to present in the statement of financial position:

  1. goodwill;
  2. investments in ‘integral’ associates and joint ventures accounted for using the equity method; and
  3. investments in ‘non-integral’ associates and joint ventures accounted for using the equity method.

The Board also tentatively decided not to add amortization, depreciation or research and development expenditure to the list of line items in paragraph 82 of IAS 1 required to be presented in the statement(s) of financial performance.

With respect to (ii), the Board tentatively decided:

  1. to define unusual items along the following lines – “Unusual items are income or expenses with limited predictive value because it is reasonable to expect that similar items will not arise for several future annual reporting periods”;
  2. to state that gains or losses arising from the remeasurement of items required to be measured at current value (including fair value) generally should not be classified as unusual items; and
  3. to require entities to provide a narrative description of the transactions or other events that give rise to unusual items. The Board will continue discussing topics within the scope of the project at future Board meetings.

Review the IASB Update and podcast on the Board's Web site.

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