Primary financial statements

Date recorded:

The consultation document—a discussion paper or an exposure draft? (Agenda Paper 21A)


The purpose of this paper was to ask the Board whether it plans to publish a Discussion Paper (DP) or an Exposure Draft (ED) to obtain feedback on the project proposals. The staff plan to seek permission to begin the balloting process on the consultation document at a later stage.

Staff analysis

The staff think that the Board has sufficient information and understand the potential problems and solutions to proceed without a DP. Furthermore, it would be more effective and efficient to publish an ED.

The staff considered whether to present the proposals as amendments to existing IFRS Standards or as a new IFRS Standard if the Board were to publish an ED. The staff preferred developing a new Standard because the Board could structure proposed and existing requirements in a clearer manner, improve the drafting of IAS 1 Presentation of Financial Statements without changing the requirements and a new Standard could be more prominent than the revision of an existing Standard.

Staff recommendations

The staff recommended that the Board publish an ED rather than a DP.

Board discussion

All the Board members supported the staff’s recommendation to publish an ED because they have a good understanding of the issues facing the project and because the project is focused on presentation rather than recognition and measurement, i.e. it will not change the fundamental principles set out in IAS 1. The Board members highlighted that it would be more efficient to publish an ED because better feedback can be provided on a more precise drafting which is difficult to achieve with a DP. The Board members recommended that the staff consider the pros and cons of developing a new Standard for this project during drafting.

Board decision

All 14 Board members voted in favour for issuing an ED instead of a DP.

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