IASB publishes discussion paper on disclosure principles

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Mar 30, 2017

On March 30, 2017, the International Accounting Standards Board (IASB) published a comprehensive discussion paper (DP) setting out the Board's preliminary views on disclosure principles that should be included in a general disclosure standard or in or in non-mandatory guidance on the topic. Comments are due October 2, 2017.

Summary of main proposals

The DP contains 110 pages and is divided into eight sections accompanied by an appendix. The paper is preceded by an executive summary describing the reasons behind publishing the DP, its reach, the main content of the document, the preliminary views of the Board, the terminology used, and the next steps. The paper itself is structured as follows:

Section Topic
1 Overview of the ‘disclosure problem’ and the objective of this project
2 Principles of effective communication
3 Roles of the primary financial statements and the notes
4 Location of information
5 Use of performance measures in the financial statements
6 Disclosure of accounting policies
7 Centralised disclosure objectives
8 New Zealand Accounting Standards Board staff’s approach to drafting disclosure requirements in IFRS Standards
Appendix Illustration of applying Method B in Section 7

Some specific suggestions in the Discussion Paper include:

  • seven principles of effective communication, which could be included in a general disclosure standard or described in non-mandatory guidance;
  • possible approaches to improve disclosure objectives and requirements in IFRS Standards; and
  • principles of fair presentation and disclosure of performance measures and non-IFRS information in financial statements, to ensure that such information is not misleading.

The IASB allows constituents an extended six months period to work their way through the document and to respond to the questions raised; hence, comment letters are to be submitted by October 2, 2017.

Additional information


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