IASB to Host Forum for Discussing Overload of Disclosures
The IASB has made announcements regarding the public disclosure related forum, which the board would be hosting for the purpose of considering matters and challenges pertaining to overload of disclosures.
The disclosure forum, which would be organized in London on 28th of January 2013, would allow the International Accounting Standards Board in fostering dialogues between auditors, preparers, finance related statement users, regulators and IASB as well. Together, they will be able to hold discussions regarding the manner in which clarity and usefulness of finance related disclosures can be improved. The discussions and output of the forum will help the International Accounting Standards Board in working on its concept based framework further.
The IASB is also planning to address a viewpoint that not every information included in the finance related statements is of importance and use through the forum. Numerous factors/aspects have been cited, which have an impact on the usefulness and clarity of the information that is disclosed in these statements. Some of the factors, according to the IASB are critical and they see it as highly burdening finance reporting related requirements. Other factors point towards applying of the ‘boilerplate’ disclosure related statements by entities as well as ‘checklist’ related approach utilized by the auditors or the necessity to match the ‘compliance’ needs and demands of the regulators.
The forum would also prove useful in bringing together of parties who are deeply interested in disclosures pertaining to finance related report. These parties basically include preparers, regulators, standard setters, investors and auditors.
This will help them gain an improved understanding of the matters pertaining to overload of disclosures and how and where it is possible to make some improvements. During the forum, some of the eminent speakers will be invited to give their presentations and an open discussion will also be held to discuss several matters such as the existing state of disclosures in finance related reports, understanding and identification of the primary concerns of the regulators, users and auditors with regard to disclosures and the possible cause behind them and identification of ways in which companies can enhance the financial report’s clarity in context with the existing IFRS needs among other issues.