IASB Chair discusses strengthening the relevance of financial reporting

  • IASB speeches (blue) Image

20 Jun, 2019

In a speech at the IFRS Foundation Conference in London, IASB Chair Hans Hoogervorst discussed the Board’s plans to maintain and strengthen the relevance of financial reporting in primary financial statements (PFS) and management commentary.

Mr Hoogervorst began with an overview of the PFS project and provided comments related to subtotals (definition of operating profits and profit before financing and tax), labeling non-GAAP measurement as ‘management performance measures’, improvements to disaggregation, the disclosure of ‘unusual’ items of income or expenses, and the impact the PFS proposals will have to the quality and usefulness of the income statement.

Next, Mr Hoogervorst commented on the importance of management commentary (a topic he also covered in similar speech at the Climate-Related Financial Reporting Conference in April 2019) to provide broader financial information, such as the impact of intangibles. He mentioned the need to update the Management Commentary Practice Statement to accommodate new advances made in the environmental, sustainability and governance reporting space.

For more information, see the transcript of his speech on the IASB’s website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.