Speaking at the US SEC and the PCAOB annual conference, Vice-Chair of the IASB Sue Lloyd discusses the impact on companies of the new IFRS Standards, and how the IASB supports implementation and better communication tools between companies and investors.
Accounting standards can be complex, but their purpose is simple. They set what needs to be recognised and measured in the financial information communicated to the market—essentially setting the content of the financial statements—and then the format of that information.
During the last decade, the IASB has focused largely on the ‘content’—improving the quality, completeness and comparability of financial information by creating major new Standards. Ms Lloyd began her speech with developments and the IASB´s ongoing work to support those who use IFRS, as well as those implementing new IFRSs in this period before they come into effect.
Then, she explained how the IASB´s focus is shifting to the ‘format’ part of the equation, which involves improving the communication effectiveness of financial statements - ‘Better Communication in Financial Reporting’ initiative. The IASB´s objective in this work is to keep financial statements relevant, so that they are communication tools and not just a compliance exercise.
Finally, she said a few words about developments in wider corporate reporting and how they fit into the IASB´s own work plan.
Full speech
© IASB - International Accounting Standards Board
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