Page 380 - SBR Integrated Workbook STUDENT S18-J19

Chapter 23

Disclosures

3.1 Concerns

Financial statement disclosures are criticised for:

 lacking relevant, entity-specific information

 containing too much irrelevant information

 being poorly presented.

3.2 Progress

The Board is engaged in a Principles of Disclosure project. This has resulted in:
amendments to

 IAS 1 Presentation of Financial Statements, which provide guidance about the
systematic ordering of disclosure notes.

 IAS 7 Statement of Cash Flow, to provide further information about financing
cash flows during the reporting period.

3.3 Ongoing work

In a Discussion Paper, the Board have set out their aim to:

 publish principles of effective disclosure. This will include guidance about the
formats that disclosures can take (e.g. tables, charts etc.) and when these are
appropriate

 provide further guidance on the disclosure of EBIT and EBITDA to address
concerns about reliability and comparability.

 develop definitions of ‘unusual’ items, in order to address concerns that entities
are too quick to isolate expenses as ‘one-off’.

 publish disclosure objectives that the Board would use when drafting or
amending a standard.

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