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  • Service: Audit, Financial Statement Audit, Financial Reporting & Accounting Standards, Accounting Advisory Services, International Financial Reporting Standards (IFRS), Topics, Business Reporting, Financial Reports
  • Date: 1/04/2014

IFRS In the Headlines

IFRS In the Headlines
In the Headlines (formerly IFRS Briefing Sheets) provide a timely update on International Financial Reporting Standards (IFRS) developments.

Making financial statements more relevant (2014/05) 

This In the Headlines looks at the proposed clarifications by the IASB to IAS 1 Presentation of Financial Statements. The clarifications would not require any significant change to current practice, but should facilitate improved reporting.
Making financial statements more relevant (2014/05)
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For a while now, preparers of financial statements have been voicing concerns about ‘disclosure overload’ – e.g. presenting ‘at-a-minimum’ disclosures, regardless of their materiality.

 

They have asked for ways to de-clutter financial statement disclosures. Users, in turn, want preparers to provide more company-specific – rather than boilerplate – information, making the financial statements more relevant and telling a coherent story that is unique to their business.

 

The IASB has factored these concerns into its ‘disclosure initiative’, which aims to improve presentation and disclosure in financial reporting.

 

One of the initiative’s short-term projects is to address some of the perceived problems with current disclosure requirements through clarifications to IAS 1 Presentation of Financial Statements. On 25 March 2014, the IASB issued an exposure draft (ED) proposing narrow-scope amendments to IAS 1.

 

The clarifications would not require any significant change to current practice, but should facilitate improved reporting. In the meantime, those that choose to can already achieve those improvements under existing standards.