Disclosure initiative

Date recorded:

Amendments to IAS 7

The IASB has been considering the feedback on its proposals to amend IAS 7.

Liabilities reconciliation (see Agenda papers 11B and 11C)

In September the IASB decided to finalise the amendments requiring an entity to present a reconciliation of liabilities. At this meeting the staff is recommending that the effective date of the amendments to be 1 January 2017. The IASB is also being asked to confirm that it is satisfied with the due process steps it has taken.

Restrictions on cash (see Agenda papers 11B and 11C)

In September the IASB asked the staff for additional analysis before deciding whether or finalise the amendments requiring information to be disclosed about restrictions that affect the decisions of an entity to use cash and cash equivalents.  The staff have concluded that they have not been able to solve the concerns raised in September because the proposed amendments deal only with cash and cash equivalents and not with other liquid assets for which the matters are equally relevant.   

The staff are recommending that that further research be undertaken, but that this research be undertaken as part of the Principles of Disclosure project and that the proposed amendment should not be finalised in its current form.  Nevertheless, the staff have provided the IASB with proposed revised wording should it decide to finalise the proposal rather than follow the staff recommendation. If the IASB does decide to finalise the amendment it will be asked to confirm that it is satisfied with the due process steps it has taken.

Principles of Disclosure Discussion Paper (See Agenda Paper 11A)

In relation to the broader Principles of disclosure Discussion Paper (DP), the staff have set out the due process steps completed so far are recommending that the IASB give the staff permission to move to the more formal review and approval of the discussion paper (balloting).  The staff are confirming that the DP will cover: a) Content of a general disclosure standard; b) Components of financial statements; c) improvements to the principles of disclosure; d) Disclosure of accounting policies; e) Non-IFRS information; f) drafting disclosure requirement; and g) implications of the improvement proposals.

The staff are recommending that the DP be open for comment for 120 days.

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