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Disclosure Initiative – Amendments to IAS 1 [Completed]

Effective date:  Annual periods beginning on or after January 1, 2016. Earlier adoption is permitted.

Transitional provisions:

The amendments are effective for annual periods beginning on or after January 1, 2016. Earlier adoption is permitted.

Last updated:

September 2016


The amendments to IAS 1 relate to (i) materiality; (ii) order of the notes; (iii) subtotals; (iv) accounting policies; and (v) disaggregation and are designed to further encourage companies to apply professional judgment in determining what information to disclose in their financial statements. For example, the amendments make clear that materiality applies to the whole of financial statements and that the inclusion of immaterial information can inhibit the usefulness of financial disclosures.  Furthermore, the amendments clarify that companies should use professional judgment in determining where and in what order information is presented in the financial disclosures.

The IASB is undertaking a broad-based initiative to explore how disclosures in IFRS financial reporting can be improved. This initiative has been informed by a Discussion Forum on Disclosure in Financial Reporting that was held in January 2013. In conjunction with this, the IASB staff also conducted a survey. A Feedback Statement on these events was published in May 2013.

The Disclosure Initiative is currently made up of a number of implementation and research projects, as follows:

  1. these narrow focus amendments to IAS 1, Presentation of Financial Statements
  2. certain narrow focus amendments to IAS 7, Statement of Cash Flows [see separate project]
  3. a major project on changes in accounting policies and estimates [see separate project]
  4. a major project on materiality [see separate project]
  5. a major project on the principles of disclosure (including the Standards-level Review of Disclosures) [see separate project]; and
  6. a research project on general disclosure issues.

Other developments

April 2015

In April 2015, Highlight Summary I.30 was issued adding these amendments to the “IFRSs Issued but Not Yet Effective” section of the CPA Canada Handbook, Part 1. Of note, new IFRSs only become part of Canadian GAAP once they have been issued in the CPA Canada Handbook.

December 2014

On December 18, 2014, the IASB issued Disclosure Initiative (Amendments to IAS 1) as part of its major initiative to improve presentation and disclosure in financial reports.

Correction list for hyphenation

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