IASB Proposes Updates to Improve Financial Reporting

The International Accounting Standards Board (IASB) has announced new proposals to update the IFRS Accounting Taxonomy. These changes aim to enhance how financial information is presented and disclosed, making it easier to compare and analyze companies' financial performance.

What's New?

IFRS 18 Presentation and Disclosure in Financial Statements introduces:

• Improved Structure: The statement of profit or loss will have a better structure, making financial performance comparisons between companies more straightforward.

• Specific Disclosures: New requirements for showing management-defined performance measures and specified expenses by nature.

Key Changes:

1. Line-Item Modelling: This will categorize information in the statement of profit or loss into operating, investing, and financing activities.

2. Dimensional Modelling: This will help tag disclosures related to management-defined performance measures and specific expenses by nature, linking them to the profit or loss statement.

Have Your Say!

The IASB is seeking feedback on these proposals. You can read and comment on the proposed updates until 3 September 2024. Your feedback will help shape the final changes to the IFRS Accounting Taxonomy.

Get Involved

The IASB is also conducting a fieldwork exercise and is looking for participants involved in tagging and using digital financial statements. If you're interested, express your interest by 14 June 2024.

Learn More

For more details, watch a video overview by IASB Member Ann Tarca explaining the proposed updates. Visit the IASB website to read the full proposal and participate in the consultation.

These updates aim to make financial statements clearer and more comparable, benefiting both companies and users of financial reports.