IASB proposes amendments to improve accounting policy disclosure
Released 01 August 2019
Exposure Draft ED/2019/6 Proposed amendments to IAS 1 and IFRS Practice Statement 2 was released with the aim of improving the information provided to users in accounting policy disclosures.
The amendments affect IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements, and proposes to change the word ‘significant’ with ‘material’ in IAS 1. The aim of this change is to clarify the threshold for companies disclosing information.
The amendments also propose adding guidance to IAS 1 to help companies understand what makes an accounting policy material, and additional explanations and examples will be included in Practice Statement 2.