Disclosure initiative — Accounting policies

Background

This project is part of the IASB's overall disclosure initiative and is intended to help stakeholders improve accounting policy disclosures for the primary users of financial statements.

The feedback on the Board's DP on Principles of Disclosure suggested that guidance is required to assist entities in determining which accounting policies to disclose.

To this end, the Board is developing amendments to paragraphs 117-122 of IAS 1 Presentation of Financial Statements to require entities to disclose their material accounting policies rather than their significant accounting policies. To support this amendment the Board is also developing guidance and examples to explain and demonstrate the application of the ‘four-step materiality process’ described in IFRS Practice Statement 2 Making Materiality Judgements to accounting policy disclosures.

Current status of the project

This project has been completed. The IASB issued Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) on 12 February 2021.

Project milestones

Date	Development	Comments
30 March 2017	DP/2017/1 Disclosure Initiative — Principles of Disclosure published	Feedback on the DP suggested that guidance is required to assist entities in determining which accounting policies to disclose
July 2018	Project added to the agenda of the IASB
1 August 2019	ED/2019/6 Disclosure of Accounting Policies (Proposed amendments to IAS 1 and IFRS Practice Statement 2)	Comments are requested by 29 November 2019.
12 February 2021	Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) issued	The amendments are effective for annual periods beginning on or after 1 January 2023.

Related Discussions

Disclosure initiative — Accounting policies

14 Dec, 2020

The purpose of this session was to address two issues that have been raised by Board members as part of the balloting process.

Disclosure Initiative — Accounting policies

22 Jul, 2020

In this session, the Board discussed the staff analysis and recommendations about transition requirements and the effective date of amendments as well as determining whether staff can begin the balloting process for the amendments.

Disclosure initiative: Accounting policies

24 Jun, 2020

In this session, the Board discussed the concept of materiality to all types of accounting policy information, including accounting policy information that is standardised information or information that duplicates or summarises the requirements of IFRS Standards.

Disclosure initiative: Accounting policies

24 Jun, 2020

Disclosure initiative — Accounting policies

21 May, 2020

The Board discussed (1) its approach to project redeliberations, (2) characteristics of primary users, (3) examples of circumstances in which an entity is likely to consider information about an accounting policy material and (4) examples for IFRS Practice Statement 2 'Making Materiality Judgements'.

Disclosure initiative — Accounting policies

26 Feb, 2020

The Board discussed comment letter feedback on the exposure draft on the disclosure of accounting policies. The Board was not be asked for any decisions at the meeting but their thoughts on the feedback was sought to aid future staff activities.

Disclosure initiative

10 Apr, 2019

The purpose of this meeting was for the Board to decide whether the staff can begin the balloting process on the proposed amendments to IAS 1 and IFRS Practice Statement 2.

Disclosure initiative

14 Mar, 2019

Staff recommend that the Board use two examples to demonstrate the practical application of guidance to help entities apply the four-step materiality process in the Materiality Practice Statement to accounting policy disclosure.

Disclosure initiative

13 Dec, 2018

The Board decided to amend paragraphs 117–124 of IAS 1 to require entities to disclose their material accounting policies rather than their significant accounting policies.