Amendments to IAS 1 Yesterday, IASB issued certain narrow-focus amendments to IAS 1. The amendments clarify existing IAS 1 requirements and help in applying judgment by the entities. Overview of amendments is given below: - Immaterial information can detract from useful information i.e. too much detail can obscure useful information. Therefore, immaterial information need not be disclosed in FS even if other IFRS require so. - Materiality applies to the whole of financial statements as well as to each disclosure requirement in an IFRS. - There was certain language in IAS 1 that was perceived as prescribing the order of notes to the financial statements including policies. This has been removed from IAS 1. Removal of such wording makes it easier for entities to use professional judgement in determining where and in what order information is presented in the financial disclosures. - Amendments clarify that entities have flexibility about where they disclose accounting policies in the financial statements i.e. it has reduced restrictions on how accounting policies should be presented, allowing important accounting policies to be given greater prominence in financial reports. The amendments to IAS 1 can be applied immediately, and would become mandatory for annual periods beginning on or after 1 January 2016.
Posted on: Fri, 19 Dec 2014 17:46:59 +0000
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