Global Standards for the world economy

Sunday 21 January 2018

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Our 'Better communication' theme


The objective of financial reporting is to provide financial information that is useful to investors in making decisions. It is important that the financial information provided to those investors is communicated effectively.

Now that the Board’s work on a number of major projects is coming to an end, investors have asked us to refocus our activities on projects designed to make financial information more relevant to them and improve the communication of that information.

They told us that at present, valuable information is often hidden by ‘boiler-plate’ disclosures and that financial information is often poorly presented. It can be difficult and time-consuming for investors to identify the most useful information from amongst all the information that is disclosed. The Board wants to make the communication of financial information more effective and, hence, 'Better Communication' will be a theme underlying much of our work for the next few years.

The Board has identified several projects that it will develop to support better communication. Click on the project name to read more.


Project Status
Primary Financial Statements This project is likely to:
  1. consider the structure and content of the statement(s) of financial performance, including additional line items, subtotals and alternative performance measures.
  2. explore whether there is a need to improve the structure and content of the statement of cash flows and of the statement of financial position.
  3. consider the interaction between the primary financial statements.
Principles of Disclosure The Board is developing presentation and disclosure principles that apply across all IFRS Standards. The purpose of these principles would be to help the Board set better disclosure requirements and to enable preparers to make better judgements about disclosures. As part of this project, the Board intends to publish a Discussion Paper on the Principles of Disclosure.

The Board may also consider making targeted improvements to existing disclosure requirements.
IFRS Taxonomy The Board will focus on a number of areas:
  1. content: ensure that IFRS Standards and identified common practice are reflected within the taxonomy in an accurate and timely manner.
  2. adoption and implementation: support accurate tagging by preparers and use of the IFRS Taxonomy by regulators.
  3. interaction between electronic reporting and principle-based standard-setting: specific focus on the management of disclosures not explicitly covered within the IFRS Taxonomy (‘entity-specific disclosures’).
  4. governance: implementation of the revised IFRS Taxonomy due process.
  5. technology: the wider impact technology may have on the relevance of the Standards and the IFRS Taxonomy.
Materiality Practice Statement The objective of this project is to help preparers, auditors and regulators to use judgement when applying the concept of materiality.