At its meeting on November 18, 2020, the IASB tentatively decided that: (i) an entity that complies with the revised Practice Statement should be permitted to state that fact even if the entity does not prepare its financial statements in accordance with IFRS Standards; (ii) the revised Practice Statement:
- use ‘accuracy’ to describe freedom from error, noting that both qualitative and quantitative information can be accurate;
- explain that information need not be perfectly accurate in all respects—the degree of accuracy and precision that is needed and is attainable varies depending on the nature of the information; and
- explain that the factors that make information accurate depend on the type of information. For example, accuracy requires that: factual information is free from material errors; descriptions are precise; estimates, approximations and forecasts are clearly identified as such, and are developed by correctly applying an appropriate process, using reasonable and supportable inputs; assertions are based on reasonable and supportable information; and information about management’s judgements about the future precisely describes the judgements and how they have been reached. The Board discussed suggestions for refining both the overall objective of management commentary and the disclosure objectives for areas of content in management commentary.
The Board was not asked to make any decisions. The Board has started the process of preparing an Exposure Draft for balloting. It expects to publish the Exposure Draft in April 2021.
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