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Disclosure initiative — Overview

Components

The IASB's Disclosure initiative is made up of a number of projects, three of which have already been completed. 

Component Status
Narrow scope amendments
Amendments to IAS 1 Completed. Disclosure Initiative (Amendments to IAS 1) published in December 2014
Materiality Completed. IFRS Practice Statement Making Materiality Judgements issued in September 2017; Definition of Material (Amendments to IAS 1 and IAS 8) issued in October 2018
Reconciliation of liabilities from financing activities
Completed. Disclosure Initiative (Amendments to IAS 7) published in January 2016
Research projects
General disclosure review The standards-level reviewcomplements the Principles of disclosure project. The principles identified through that project will be used as the basis for the standards-level review.
Principles of disclosure DP/2017/1 Disclosure Initiative — Principles of Disclosure published on 30 March 2017

This project page tracks developments from the initial phase of the overall initiative.


Background

There have been a number of reports and projects initiated by national standard setters and others on the topic of disclosure. The IASB has also undertaken various activities around disclosure in response to these reports and other calls to simply and rationalise disclosure in financial reports.

The IASB formally added a short-term initiative on disclosure to its work programme in December 2012 as part of its response to the Agenda consultation 2011. The objective of the initiative was to explore opportunities to see how those applying IFRS can improve and simplify disclosures within existing disclosure requirements.

In implementing this initiative, the IASB undertook a constituent survey on disclosure and held a disclosure forum designed to bring together securities regulators, auditors, investors and preparers.

The IASB subsequently issued Feedback Statement Discussion Forum – Financial Reporting Disclosure on 28 May 2013, which outlined the IASB's intention to consider a number of further initiatives, including short-term and research projects.  These included:

  • Narrow scope amendments to IAS 1 Presentation of Financial Statements to address perceived impediments to preparers exercising their judgement in presenting their financial reports
  • A project on materiality, seeking to develop application guidance or educational material on materiality, with input from an advisory group
  • A revised research project on financial statement presentation, conducted in parallel with the IASB's conceptual framework project, focused on broader challenges associated with disclosure effectiveness, which ultimately may lead to a replacement for IAS 1 Presentation of Financial Statements, IAS 7 Statement of Cash Flows and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, in essence developing a disclosure framework for IFRS.

Project milestones

The milestones listed below only include the major pronouncements issued in this broader project. For more information, including details of exposure drafts and other due process documents for each phase, refer to the individual project pages for the various project components.

Date Development Comments
20 December 2012 IASB staff survey on disclosure Survey close date 15 January 2013
28 January 2013 IASB Disclosure Forum
28 May 2013 Feedback Statement Discussion Forum – Financial Reporting Disclosure published Three key actions to be considered by the IASB:
  • Narrow scope amendments to IAS 1
  • A project to develop application guidance or educational material on materiality
  • Revised research project on financial statement presentation
18 December 2014 Disclosure Initiative (Amendments to IAS 1) published

First component of the project completed.

The amendments are effective for annual periods beginning on or after 1 January 2016.
28 October 2015
ED/2015/8 IFRS Practice Statement - Application of Materiality to Financial Statements published

Comments requested by 26 February 2016

29 January 2016 Disclosure Initiative (Amendments to IAS 7) published

Second component of the project completed.

The amendments are effective for annual periods beginning on or after 1 January 2017.
30 March 2017 DP/2017/1 Disclosure Initiative — Principles of Disclosure published

Comments requested by 2 October 2017

14 September 2017 ED/2017/6 Definition of Material (Proposed amendments to IAS 1 and IAS 8) published; IFRS Practice Statement Making Materiality Judgements issued

Comments on the ED requested by 15 January 2018

31 October 2018 Definition of Material (Amendments to IAS 1 and IAS 8) issued

Third component of the project completed.

The amendments are effective for annual periods beginning on or after 1 January 2020.

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