IASB ED/2019/6

  • For-profit

Tier 1 and Tier 2

Disclosure of Accounting Policies—Proposed amendments to IAS 1 and IFRS Practice Statement 2

The International Accounting Standards Board (IASB) has recently issued for comment ED/2019/6 Disclosure of Accounting Policies—Proposed amendments to IAS 1 and IFRS Practice Statement 2 (the ED).

In March 2017 the IASB issued the Discussion Paper Disclosure Initiative—Principles of Disclosure (PoD DP) to help it identify and address issues related to the disclosure of information in the financial statements prepared applying IFRS®Standards.

Unlike some other areas of the PoD DP, there was clear support from users for the IASB developing guidance to help preparers decide which accounting policies to disclose. Further, users said that the application of materiality is key to deciding which accounting policies to disclose and thought that materiality should be the basis of any requirements developed by the IASB.

These users thought it would be useful if the IASB developed more guidance on how to determine if an accounting policy is material.

The proposed amendments are intended to help entities provide accounting policy disclosures that are more useful to primary users of financial statements. The IASB has heard that users of financial statements do not find accounting policy disclosures useful when they contain standardised (or ‘boilerplate’) information and only duplicate or summarise the content of the recognition and measurement requirements of IFRS Standards.

The proposed amendments are intended to help entities:

  • identify and disclose all accounting policies that provide material information to primary users of financial statements; and
  • identify immaterial accounting policies and eliminate them from their financial statements.

Proposed amendments

The table summarises the proposed amendments contained in the ED:


Proposed amendment

IAS 1 Presentation of Financial Statements

Amend paragraph 117 of the Standard to require an entity to disclose its ‘material’ accounting policies rather than those that are ‘significant’.

Adding explanatory paragraphs to accompany the amendment to paragraph 117 to:

  • clarify that not all accounting policies relating to material transactions, other events or conditions are themselves material; and
  • identify circumstances in which an entity normally would conclude that information about an accounting policy is material to its financial statements.

The IASB does not propose to relieve an entity from meeting other disclosure requirements within IFRS Standards.

IFRS Practice Statement 2 Making Materiality Judgements

To support the proposed amendments to IAS 1, the IASB also proposes amending the practice statement to Illustrate how an entity could judge whether information about an accounting policy is material to its financial statements.


In particular, the IASB proposes adding guidance and examples to the practice statement to help entities apply its four-step materiality process to accounting policy disclosures.


The XRB Board is committed to adopting international standards in the for-profit sector. Generally, once a standard has been issued by the IASB, the NZASB then issues the New Zealand equivalent standard without further consultation.

So, this is your opportunity to comment on the proposed future standard that will be issued in New Zealand.

Accessing the Consultation Document

Commenting on the Proposal

Comments are due to the NZASB by 7 October 2019 and to the IASB by 29 November 2019

Send your comments—both formal and informal— to the NZASB using the upload form below. 

We also encourage you to send comments directly to the IASB, with a copy to the NZASB. Your comments can be made electronically to the IASB website by clicking on the following link https://www.ifrs.org/projects/open-for-comment/. First-time users must register with IASB to submit electronically.

Upload your submission here

Please use this secure online form.

It has been designed to make your upload safe, quick and easy. 

You can:

  • Upload an MS Word document (and a PDF file, if you wish); or
  • Write your comments below in the space provided.

You can upload up to TWO documents. 

Please note:

  • We would appreciate receiving a copy of your comments in electronic form (preferably Microsoft Word format).  This helps us to more efficiently collate and analyse comments. Please also specify the exposure draft number and title in your electronic file. 

  • Tell us on whose behalf you are making the comments (for example on behalf of a group or an entity).

  • We intend publishing all comments on the XRB website, unless they may be defamatory. If you have any objection to this, we will not publish them. However, they will remain subject to the Official Information Act 1982 and, therefore, may be released in part or in full. The Privacy Act 1993 also applies.

  • If you have an objection to the release of any information contained in your comments, we would appreciate you identifying the parts of your comments to be withheld, and the grounds under the Official Information Act 1982 for doing so (for example, that it would be likely to unfairly prejudice the commercial position of the person providing the information).