The IASB has been working on promoting the effective communication of information in the financial statements. Key projects include Principles of Disclosure. The objective of this research project is to improve existing guidance in IFRS that helps entities determine the basic structure and content of a complete set of financial statements.
The focus is on reviewing the general requirements in the IAS1 Presentation of Financial Statements and considering how they may be revised. The aim is to develop a Disclosure Standard that improves and brings together the principles for determining the basic structure and content of the financial statements, in particular the notes.
This is intended to help preparers in deciding which accounting policies to disclose in their financial statements. Consequently, on 1 August 2019, the IASB issued an exposure draft, Disclosure of Accounting Policies, requesting comments from stakeholders until 29 November 2019.
The feedback from the exposure draft suggested that the application of materiality is key to deciding which accounting policies to disclose
You are required to review an Annual Report of a company that interests you; and
1. as a potential investor critically comment on information you consider immaterial and;
2. as the preparer justify its inclusion
3. Critically discuss how a company could determine whether any disclosure is
proportionate to the risks and whether this implies that there should be fewer