Disclosure Initiative - Accounting Policies
- Hocine Kebli, Almudena Alcala, Ricardo Torres Ruiz-Olivares
On 18 July 2018, the IASB added a project to its agenda to develop guidance and examples to help entities apply materiality judgements to accounting policy disclosure. The IASB added this project in response to feedback on the Principles of Disclosure Discussion Paper (see EFRAG's projects Disclosure Initiative - Principles of Disclosure and Disclosure Initiative - Targeted Standards-level Review of Disclosures.)
The IASB is developing amendments to paragraphs 117-124 of IAS 1 Presentation of Financial Statements to require entities to disclose their material accounting policies rather than their significant accounting policies. To support this amendment the IASB is also developing guidance and examples to explain and demonstrate the application of the 'four-step materiality process' described in IFRS Practice Statement 2 Making Materiality Judgements to accounting policy disclosures (see EFRAG's project Disclosure Initiative - Definition of Material )
The IASB expects to publish an Exposure Draft over 2019.