Improving & Rationalising Disclosures
Everyone has a role to play in improving disclosures in financial reporting and the key to improving disclosures is removing unnecessary information from financial statements and allowing an entity to simply tell their story. This requires an entity to use judgement to determine whether a specified disclosure is necessary.
Through the Disclosure Initiative project, the AASB and the IASB are taking steps to improve the requirements in accounting standards for the disclosure of financial information. More information on the Disclosure Initiative project can be found here: Project Summaries: Disclosure Initiative. To date, as part of this project, the AASB has issued Amendments to AASB 101 clarifying the requirements in AASB 101, including materiality.
Some entities have already taken the initiative and have demonstrated that financial statements can be trimmed down without affecting compliance with accounting standards.
Below are links to reports and articles from organisations that have investigated the issue and provide insight into their findings and guidance on how an entity may be able to improve their financial reports.
If you have an article or report addressing improving disclosures in financial statements that you would like to share the AASB would love to hear from you. Please email Lisa Panetta email@example.com.