Preface to IFRS

Date recorded:

: The Board approved (vote 11 yes and 3 no) to approve publication of a revised Preface to International Financial Reporting Standards. In approving the Preface, the Board agreed that:

  • Presenting fundamental principles in bold face type and other guidance in non-bold type (the 'black-letter' / 'grey-letter' distinction) should be used in IFRS.
  • Black-letter and grey-letter standards have equal authority, and both will be written using 'shall'.
  • IFRS will be designed to be applied to the general purpose financial statements of business enterprises, but not-for-profit and public-sector entities that want to publish financial statements labelled as conforming to IAS must also follow all of the Standards.
  • The Board's involvement in IFRIC draft and final Interpretations will be clarified in the Preface to IFRIC Interpretations (currently being developed), and the IFRIC Preface will be included in the annual IASB Bound Volume.

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