IASB Discussion Paper DP/2017/1 Disclosure Initiative – Principles of Disclosure

The Disclosure Initiative is a broad-based initiative by the International Accounting Standards Board (IASB) exploring how to make disclosures more effective in financial statements and it forms a key part of the IASB’s work on Better Communication in Financial Reporting.

This Principles of Disclosure project is one of several within the Disclosure Initiative. The main objective of this project is to identify disclosure issues and develop new, or clarify existing, disclosure principles in IFRS Standards to address those issues and to:

(a)  help entities to apply better judgement and communicate information more effectively;
(b)  improve the effectiveness of disclosures for the primary users of financial statements; and
(c)  assist the IASB to improve disclosure requirements in Standards. 

This Discussion Paper describes and seeks stakeholders’ views on:

(a) disclosure issues that the IASB has identified during its outreach before and during the project; and
(b) approaches to address these issues, including the IASB’s preliminary views, where these have been developed.

The IASB also seeks views on any other disclosure issues that have not been identified in this Discussion Paper that should be addressed as part of this Principles of Disclosure project.

The Discussion Paper covers the following areas:

(1) overview of the ‘disclosure problem’ and the objective of this project;
(2) principles of effective communication;
(3) roles of the primary financial statements and the notes;
(4) location of information;
(5)  use of performance measures in the financial statements;
(6) disclosure of accounting policies;
(7) centralised disclosure objectives; and
(8) New Zealand Accounting Standards Board staff’s approach to drafting disclosure requirements in IFRS Standards.

The IASB is also taking the opportunity of this public consultation to seek feedback to supplement its research in other projects. For example, feedback on this Discussion Paper will also inform the IASB’s Primary Financial Statements project and the Standards-level Review of Disclosures project. 

To download the Discussion Paper, click here.

Invitation to comment

The Discussion Paper is open for comment until 4 August 2017.

You may provide your comments online or email us at technical@masb.org.my.

Click here to comment online.