IAS 1 Amendments - Presentation of Financial Statements: Capital Disclosures
- Published in the Official Journal
- Hocine Kebli
On 18 August 2005 the IASB also issued an Amendment to IAS 1 Presentation of Financial Statements – Capital Disclosures which introduces requirements for disclosures about an entity’s capital. The Amendment adds requirements for all entities to disclose:
(a) the entity’s objectives, policies and processes for managing capital;
(b) quantitative data about what the entity regards as capital;
(c) whether the entity has complied with any capital requirements; and
(d) if it has not complied, the consequences of such non-compliance.
These disclosures provide information about level of an entity’s capital and how it manages capital, which are important factors for users to consider in assessing the risk profile of an entity and its ability to withstand unexpected adverse events.
EFRAG Issued its draft endorsement advice in September 2005.
At its October 2015 meeting, EFRAG TEG agreed that, based on the comments received on its draft endorsement advice letter, it should recommend that the Commission endorse the amendments, which relate to the disclosure of information regarding externally-imposed capital requirements.
EFRAG final endorsement advice was issued in October 2005.
The Amendments were approved by the Accounting Regulatory Committee in November 2005 and published in the EU Official Journal in January 2006.