IFAC: ED 47- Financial Statement Discussion and Analysis published by IPSASB

02 April 2012

IPSASB published Exposure Draft 47, 'Financial Statement Discussion and Analysis'. The ED proposes minimum required content, while still providing sufficient flexibility for entities to prepare and publish financial statement discussion and analysis that best portrays their specific circumstances.

Because of the close link between financial statement discussion and analysis and an entity’s financial statements, ED 47 proposes that:

• the guidance be issued as an IPSAS with the same authority as IPSASs concerning accrual-based financial statements;
• financial statement discussion and analysis be prepared and presented in conjunction with an entity’s financial statements; and
• the qualitative characteristics governing preparation of financial statements be applied to financial statement discussion and analysis.

ED 47 includes implementation guidance and an illustrative example that show how an entity might prepare its financial statement discussion and analysis to comply with the proposed requirements. Comments on the ED are requested by July 31, 2012.

IPSASB Chair, Andreas Bergmann, notes: “The purpose of the financial statement discussion and analysis is to provide additional information to users of an entity’s financial statements for accountability and decision-making purposes. Financial statement discussion and analysis complements and supplements the information in the accrual-based financial statements with further insights and perspectives.”

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