To improve disclosures, the International Accounting Standards Board (IASB) has developed guidance it will apply when developing and drafting disclosure requirements in IFRS Standards.
The IASB has applied its new guidance in its proposed amendments to the disclosure sections of IFRS 13 Fair Value Measurement and IAS 19 Employee Benefits. It wants feedback on both the guidance and the proposed amendments to IFRS 13 and IAS 19.
The problem: for better disclosures we must avoid a ‘checklist approach’ that risks materiality being overlooked because preparers, auditors and regulators focus on individual compliance with each disclosure requirement.
Our concern: so much emphasis is placed on individual disclosures that their true effect is lost in the minutia.
The solution: we agree that it starts with the IASB improving its approach to developing and drafting disclosure objectives and requirements in IFRS Standards as this should focus preparers on relevant user information needs rather than a checklist.
To be successful: preparers and auditors need to apply judgement too on how best to meet the specific disclosure objective.
UKSA and ShareSoc are broadly support the proposed amendments to the guidance and to the standards.
The detail is in our joint response.
