IAS 1 — Application issues

Date recorded:


The Committee received a request to clarify the application of some of the presentation requirements in IAS 1 Presentation of Financial Statements.

The submitter expressed a concern that the absence of definitions in IAS 1 and the lack of implementation guidance give significant flexibility that may impair the comparability and understandability of financial statements. The submitter provided examples in the following areas:

  • presentation of expenses by function
  • presentation of additional lines, headings and subtotals
  • presentation of additional statements or columns in the primary statements
  • application of the materiality and aggregation requirements.


Decision not to add

May 2014



The Committee observed that a complete set of financial statements is comprised of items recognised and measured in accordance with IFRS.

The Committee noted that IAS 1 addresses the overall requirements for the presentation of financial statements, guidelines for their structure and minimum requirements for their content. It also noted that while IAS 1 does permit flexibility in presentation, it also includes various principles for the presentation and content of financial statements as well as more detailed requirements. These principles and more detailed requirements are intended to limit the flexibility such that financial statements present information that is relevant, reliable, comparable and understandable.

The Committee observed that securities regulators, as well as some members of the Committee, were concerned about the presentation of information in the financial statements that is not determined in accordance with IFRS. They were particularly concerned when such information is presented on the face of the primary statements. The Committee noted that it would be beneficial if the IASB's disclosure initiative considered what guidance should be given for the presentation of information beyond what is required in accordance with IFRS.

Consequently, the Committee determined that it should not propose an Interpretation nor an amendment to a Standard and consequently decided not to add this issue to its agenda.


IFRIC reference:

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