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Disclosure initiative — Disclosure review

Background

This project is part of the IASB's overall disclosure initiative and considers the way the Board develops disclosures requirements in IFRSs.

As part of the IASB's Feedback Statement Discussion Forum – Financial Reporting Disclosure, constituent concern about the cumulative effect of disclosure requirements introduced by new and revised standards was noted, with many commentators suggesting a general review of disclosure requirements.

As a first step, the Board's DP on Principles of Disclosure contained an appendix with two examples of how existing standards could be re-drafted using the principles described in the DP.

Many respondents to the DP highlighted the ‘checklist’ approach as a significant factor contributing to the disclosure problem and that the Board’s way of developing and drafting disclosure requirements in IFRSs is partly responsible for this as there often are a large number of disclosure requirements without specific disclosure objectives. In addition, disclosure sections are drafted inconsistently.

The Board acknowledged these concerns and decided to pursue a project following a four-step approach:

  • Develop draft guidance for the Board to use when developing and drafting disclosure sections;
  • Select two standards on which to apply the draft guidance;
  • Test the draft guidance by applying it to those standards; and
  • Prepare an ED of amendments to those standards.

 

Current status of the project

An exposure draft containing draft guidance for the Board to use when developing and drafting disclosure sections and proposed amendments to the disclosure requirements in IAS 19 and IFRS 13 was published on 25 March 2021 with comments requested by 21 October 2021.

 

Project milestones

Date Development Comments
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
30 March 2017 DP/2017/1 Disclosure Initiative — Principles of Disclosure published The DP contains an appendix with two examples of how existing standards could be re-drafted using the principles described in the DP
25 March 2021 ED/2021/3 Disclosure Requirements in IFRS Standards — A Pilot Approach (Proposed amendments to IFRS 13 and IAS 19) published Comments requested by 21 October 2021

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