10 Point-Plan Regarding Disclosure Announced by IASB Chairman

Hans Hoogervorst, the IASB Chairman, insisted on the implementation of IFRSs around the world IFRS Foundation conference.

Worldwide standards

Hoogervorst looked into 65 “jurisdiction profiles” and gathered information about the implementation of IFRS for SMEs and International Financial Reporting Standards (IFRSs) itself in all of the G20 jurisdictions and 46 other jurisdictions. During his speech he also shed light on the recent developments in Japan for the extensive use of IFRSs in Japan.

Current work programme

While looking into the details of current work program, Hoogervorst disclosed his opinions on issues such as impairment, insurance accounting and the conceptual framework.

In his speech, he spoke about Exposure Draft ED/2013/3 Financial Instruments: Expected Credit Lossespublished on 7 March 2013, Exposure Draft ED/2013/7 Insurance Contracts published on 20 June 2013 and conceptual framework project, to be released in July 2013.

10 point plan

In the recent IFRS foundation conference, Hans Hoogervorst, the IASB Chairman presented ten-point plan in order to eradicate shortcomings in financial reporting.

1. Non-material disclosures must be eradicated as the materiality principle in IAS 1 means that only material items must be included. In order to mention do clarify in IAS 1 regarding the inclusion of material items.

2. As far as the application of materiality assessment is concerned, it gets applied to whole financial statements. This includes even the notes.

3. Standard in the disclosure requirement always contain material information therefore, it must be keenly clarified the relevance of standard to the financial statement of particular entity.

4. Language has interpreted as prescribing in terms of the notes order in financial statement. Therefore, it is recommended to remove language from IAS 1.

5. Accounting disclosure policies in the financial statement must be given entire flexibility by IAS 1 that will help them work with ease.

6. net-debt reconciliation requirement must be added and considered

7. One of the two, either general application guidance or educational material on materiality‘s creation must be considered and looked into.

8. In order to explain disclosure requirements when developing new standards, simple language must be used.

9. Start research to review IAS 1, IAS 7 and IAS 8 with the goal to replace those standards

10. Review of disclosure requirement must also be undertaken.