Disclosure initiative — Primary Financial Statements [ED]
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Comment period ends on September 30, 2020 (extended from June 30, 2020) |
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Next steps: |
The IASB plans to issue the IFRS Accounting Standard (no date specified) |
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Last updated: |
January 2023 |
Overview
The Primary Financial Statements project is early stage research examining possible changes to the structure and content of the primary financial statements.
Initial research will focus on:
- the structure and content of the statement(s) of financial performance, including assessing whether to require a defined sub-total for operating profit and examining the use of alternative performance measures (i.e., financial measures that are not defined or specified in Standards);
- the potential demand for changes to the statement of cash flows and the statement of financial position. This research will include feedback on a proposed discussion paper on the statement of cash flows being prepared by the staff of the UK Financial Reporting Council; and
- the implications of digital reporting for the structure and content of the primary financial statements.
In the September 2017 IASB Staff Paper, the IASB included an illustrative example of the Statement of financial performance. Below is an example of how management performance measure (MPM) fits into the statement(s) of financial performance (provided as MPM subtotal).
Subsequently, at its meeting on October 24, 2018, the IASB Staff presented a Paper to the Board setting out its detailed recommendations for the descriptions of the three subtotals that the IASB Is considering in the statement of financial performance. The staff recommended that:
(a) the subtotal previously described as ‘business profit from consolidated entities’ should be described as ‘operating profit or loss’;
(b) the subtotal previously described as ‘profit before income/expenses from investments, finance income/expenses and income tax’ should be described as ‘operating profit or loss and share of profit or loss of integral associates and joint ventures’;
(c) the subtotal previously described as ‘profit before finance income/expense and income tax’ should be described as ‘profit or loss before financing and income tax’; and
(d) entities should be prohibited from using the term ‘EBIT’ to describe the subtotal ‘profit or loss before financing and income tax’.
If implemented, these recommendations would potentially result in significant changes to current practice.
Other developments
November 2022
On November 28, 2022, the IASB staff updated the work plan to indicate that the Board plans to issue the IFRS Accounting Standard (no date specified).
January 2021
On January 29, 2021, the IASB staff updated the Work Plan to indicate that the Board plans to issue a new IFRS Standard on presentation and disclosures in financial statements that, when finalized, will replace IAS 1, Presentation of Financial Statements (no issue date yet specified).
December 2020
On December 18, 2020, the IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in January 2021.
September 2020
On September 28, 2020, IASB staff updated the Work Plan to indicate that the Board plans to review the Exposure Draft Feedback in December 2020.
July 2020
On July 23, 2020, IASB staff updated the Work Plan to indicate that the Board plans to review the Exposure Draft feedback in Q4/2020.
April 2020
The comment period on the Exposure Draft was extended by the IASB to September 30, 2020.
January 2020
On January 15, 2020, the AcSB released an exposure draft that corresponds to the International Accounting Standards Board's (IASB) exposure draft. Comments are requested by June 30, 2020.
December 2019
On December 17, 2019, the IASB published the exposure draft of a new standard General Presentation and Disclosures that is intended to replace IAS 1, Presentation of Financial Statements. Comments are requested by June 30, 2020.
October 2019
On October 1, 2019, the IASB® staff updated the work plan to indicate that the Board expects to issue an Exposure Draft in December 2019.
July 2019
On July 29, 2019, the IASB staff updated the work plan to indicate that the Board expects issue an Exposure Draft in Q4/2019.
May 2019
On May 18, 2019, the IASB staff updated the work plan to indicate that the Board expects to issue an Exposure Draft in the second half of 2019.
November 2018
In November 2018, the IASB staff updated the work plan to indicate that the IASB expects to issue a Discussion Paper or Exposure Draft in the second half of 2019.
January 2018
On January 26, 2018, the IASB Staff updated this project to indicate that the IASB now expects to issue a Discussion Paper or Exposure Draft in the first half of 2019.
June 2017
In June 2017, the IASB staff updated the work plan to indicate that the IASB expects to issue a Discussion Paper or an Exposure Draft in the 1st half of 2017.
March 2017
On March 23, 2017, the IASB staff issued an updated Work Plan which indicates that the IASB expects to publish a Discussion Paper or Exposure Draft in respect of this project for comment after September 2017.
December 2016
On December 15, 2016, the IASB staff updated the Work Plan in respect of this project to indicate that the IASB expects to publish a Discussion Paper or Exposure Draft for comment after June 2017.
November 2016
On November 7, 2016, the IASB provided an update and papers summarizing this research will be presented to the Board in November 2016. It is expected that the Board will decide on the scope of the project in December 2016.
September 2016
On September 23, 2016, the IASB staff updated the Work Plan in respect of this project to indicate that the IASB expects to decide the project direction by December 31, 2016.
