ED 309 Disclosure Requirements in Australian Accounting Standards—A Pilot Approach proposes a new approach to developing disclosure requirements in Australian Accounting Standards (AAS) and new disclosure requirements for AAS on fair value measurement and employee benefits. These proposals would enable entities to enhance their judgement and reduce ‘boilerplate’ information.
The new approach is written as draft guidance when developing disclosure requirements in individual Standards with an aim to:
- enhance investor engagement to ensure the AASB has an in-depth understanding of investors’ information needs and clearly explains those needs in AAS;
- give greater prominence to the objective of disclosure requirements, requiring entities to apply judgement and provide information to meet the described investor needs; and
- minimise requirements to disclose particular items of information, and instead to help entities focus on disclosing material information only.