25 January 2018

In 2013, the IASB started its Disclosure Initiative project in response to widespread observations that
the quality of disclosures in financial statements prepared in accordance with IFRS could be
improved. The IASB’s project has evolved during the four year period to date, and has become a
central theme of the Board’s work for the coming years during which it will focus on ‘Better

A number of consultation documents have been issued, including an exposure draft of a Practice
Statement Application of Materiality to Financial Statements, and a Discussion Paper covering
Principles of Disclosure.

Changes have already been made to a number of IFRSs as a result of the Disclosure Initiative project,
in particular to IAS 1 Presentation of Financial Statements, which are aimed at clarifying current
materiality guidance and the order of the notes, including accounting policies. These amendments
are aimed at encouraging, assisting and enabling entities to revisit their disclosures in financial
statements in order to reduce the extent of uninformative, standardised ‘boilerplate’ disclosures,
and to focus on those aspects that are of greatest significance to them. A summary of those
amendments, which were effective for periods beginning on or after 1 January 2016, is set out below
in order to highlight the changes that have been made, and to assist in enabling an informed view to
be taken about which disclosures are, and are not, required in each entity’s financial statements.
Amendments to IAS 1 Presentation of Financial Statements

The amendments made to IAS 1 are designed to address concerns expressed by constituents about
existing presentation and disclosure requirements and to encourage entities to use judgement in the
application of IAS 1 when considering the layout and content of their financial statements.
In addition, an amendment was made to IAS 1 to clarify the presentation of an entity’s share of other
comprehensive income (OCI) from its equity accounted interests in associates and joint ventures. The
amendment requires an entity’s share of other comprehensive income to be split between those items
that will and will not be reclassified to profit or loss, and presented in aggregate as single line items
within those two groups.

There were amendments to various paragraphs of IAS 1:

  • Materiality and aggregation (paragraphs 29 to 31)
  • Statement of financial position (paragraphs 54 to 55A), and statement of profit or loss andother comprehensive income (paragraphs 82 and 85 to 85B)
  • Notes to the financial statements (paragraphs 112 to 116)
  • Accounting policies (paragraphs 117 to 121)
  • Equity accounted investments (paragraph 82A).