IASB’s new approach to disclosure requirements
The IASB has developed a new approach to developing disclosure requirements in standards. The new approach responds to concerns that the notes to the financial statements sometimes include too little relevant information, too much irrelevant information or ineffective communication. The new approach is intended to help entities in making decisions about what information to disclose rather than using a ‘checklist’ or ‘boilerplate’ approach.
ED/2021/3 Disclosure Requirements in IFRS Standards—A Pilot Approach seeks feedback on the new approach and the application of new approach to the disclosure requirements in IAS 19 Employee Benefits and IFRS 13 Fair Value Measurement. The IASB wants to know if the new approach would help improve the usefulness of information disclosed.
The IASB is aiming to:
- enhance investor engagement, to ensure the IASB has an in-depth understanding of investors’ information needs and clearly explains those needs in standards;
- give greater prominence to the objective of disclosure requirements, requiring entities to apply judgement and provide information to meet the described investor needs; and
- minimise requirements to disclose particular items of information, and instead to help entities focus on disclosing material information only.
The New Zealand Accounting Standards Board (NZASB) encourages you to read the Exposure Draft and to comment on the proposals.
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. The NZASB will consult separately about any proposed disclosure concessions for Tier 2 for-profit entities.
In this short video, Board Member Nick Anderson introduces the Board’s proposals set out in the Exposure Draft
XRB event: The Disclosure Dilemma
Register for our panel discussion to explore the proposals from a preparer, regulator and auditor perspective.
Thursday 5 August, 2021
The IFRS Foundation has held two webinars to discuss the proposals in this Exposure Draft.
The first (on 19 May) provided an overview of the proposals and a Q&A session at the end of the presentation.
The second webinar featured a question and answer session with Board Members Tadeu Cendon and Tom Scott.
It also included discussion of the Board’s views on particular aspects of the proposed approach, such as the application of judgement, comparability, auditability and enforceability and digital reporting.
Commenting on the Proposals
This is your opportunity to comment.
The deadline for comments to the NZASB is 4 October 2021 and to the IASB is 12 January 2022.
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 to submit electronically.
Upload your submission here
Please use this secure online form.
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- Upload an MS Word document (and a PDF file, if you wish); or
- Write your comments below in the space provided.
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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).