IASB ED/2019/7

  • For-profit

General Presentation and Disclosures

The International Accounting Standards Board (IASB) has recently issued for comment ED/2019/7 General Presentation and Disclosures (the ED).

The proposals set out general presentation and disclosure requirements relevant for all entities.

The objective of the proposals in the ED is to improve how information is communicated in the financial statements, with a focus on information about performance in the statement of profit or loss.

The ED proposes that entities be required to:

  1. present new defined subtotals in the statement of profit or loss;
  2. disaggregate information in a better way; and
  3. disclose information about some performance measures defined by management (‘non-GAAP’ measures).

The IASB proposes to issue a new IFRS Standard to replace IAS 1 Presentation of Financial Statements and amend some IFRS Standards to reflect these proposals.

Entities would be required to:

  1.  classify their income and expenses into four categories – operating; integral associates and joint ventures; investing; and financing; and
  2. present three subtotals between these categories – operating profit; operating profit and income and expenses from integral associates and joint ventures; and profit before financing and income tax.

The ED is accompanied by illustrative examples which illustrate ways for different types of entities to meet the presentation and disclosure requirements proposed in the ED.

The ED also proposes to introduce principles for aggregation and disaggregation and specific requirements for entities to:

  1. present an analysis of operating expenses, either by nature or by function, that provides the most useful information to investors on the face of the statement of profit or loss; and
  2. disclose in a single note information about each unusual income and expense, with the term ‘unusual income and expense’ being defined.

The ED also proposes to define ‘management performance measures’ and require these measures to be included in a single note to the financial statements accompanied by disclosures aimed at enhancing their transparency.

IASB Chair, Hans Hoogervorst, explains that the “proposals represent a game-changer in the comparability and usefulness of financial statements”, and summarises the proposals in the ED in this brief video.

Watch the video

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.


Accessing the Consultation Documents

Commenting on the Proposal

This is your opportunity to comment on these proposals.

Comments are due to the NZASB by 21 May 2020 and to the IASB by 30 June 2020

Send your comments—both formal and informal— to the NZASB using the secure 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).