|
|
EFRAG welcomes the Disclosure Initiative project set up by the IASB in 2013 that aims to review the disclosure requirements in existing standards and to develop principles for disclosures in the notes.
Therefore, EFRAG supports this short-term project to change some of the terminology in IAS 1 'Presentation of Financial Statements' that may have been interpreted too strictly. In EFRAG’s view, this should enable entities to exercise more judgement in presenting and disclosing information and hence result in improving the quality and the relevance of disclosures in the notes to the financial statements.
However, EFRAG suggests a number of improvements in the wording of the proposed amendments in the ED.
Finally, EFRAG asks whether constituents believe (a) that the IASB should require that entities "shall not" (rather than "need not") disclose immaterial information, if the IASB wants to promote a change in behaviour; and (b) an entity should disclose only those accounting policies for which the entity was allowed a degree of discretion in choosing and applying the policy.