It is often argued that the problem with economics is that it is neither an art nor a science. And when it comes to some areas of accounting and financial reporting the same dilemma becomes apparent. Quite what is the difference between judgement in determining what accounting policy applies to a transaction (and how to apply it) and what has been estimated in applying that policy?

Information about the key judgements and estimates provides very useful insights. It helps investors understand the choices and judgements management has had to make in preparing the financial statements.

It also allows investors to better assess the quality of the accounting policy decisions management makes and to identify those areas that rely on greater estimation. It enables people to think about what might happen and what may affect the outcomes being estimated. It throws light into a thought process that the blunt disclosure of a bald fact does not.

Review the entire column on our Global IAS Plus website.

Below is an analysis of all changes made to the work plan since our last analysis on September 22, 2017.

Main­te­nance projects

• Accounting policy changes (changes in accounting policies that result from agenda decisions published by the IFRS Interpretations Committee) — exposure draft is now expected in first quarter of 2018.
• Classification of Liabilities — final amendments are now expected in the second half of 2018.
• Long-term interests in associates and joint ventures — the work plan reflects that the final amendments have been published.
• Improvements to IFRS 8 — Feedback statement on exposure draft is now expected in November 2017.
• Plan amendment, curtailment or settlement — final amendments are now expected in January 2018.
• Prepayment features with negative compensation — the work plan reflects that the final amendments have been published.

Research projects

• Financial in­stru­ments with char­ac­ter­is­tics of equity — a dis­cus­sion paper is now expected in the first half of 2018.
• Principles of disclosure — feedback statement on the discussion paper is now expected in the first quarter of 2018.

Other projects

• IFRS Taxonomy update for prepayment features with negative compensation — New entry added to work plan. Feedback statement on the proposed update is expected in the first quarter of 2018.

The revised IASB work plan is available on the IASB's website.