ICAEW REP 120/19 Disclosure of accounting policies proposed amendments to IAS 1 and IFRS practice statement 2
Released 21 November 2019
The Institute of Chartered Accountants in England and Wales (ICAEW) has submitted its repsonse to Disclosure of Accounting Policies: Proposed amendments to IAS 1 and IFRS Practice Statement 2, published by IASB in August 2019.
The Institute supports IASB efforts to address user concerns about the disclosure of accounting policies in the financial statements. While it supports the overall progress made by the IASB on this project, it has some concerns with the proposal to replace the requirement to disclose ‘significant’ accounting policies with the requirement to disclose ‘material’ accounting policies. The Institute believes the proposed changes focus too heavily on whether an accounting policy itself is material rather on what information about an accounting policy is material.