3. IASB amendment to IAS1 and PS 2 to disclosure of AP

Question 1

Amendments to IAS 1

Answer 1

• Replaces all instances of Significant AP with Material AP information
• If AP is immaterial, no need any disclosure
• If company chooses to disclose immaterial info, such info must not obscure material accounting info

Question 2

Definition of Material AP (Part 1)

Answer 2

Keywords: expected to influence decisions of users

• AP info is material (individually or aggregate with other info) when it can reasonably be expected to influence the decision of primary users of general financial statements

Question 3

Definition of Material AP (Part 2)

Answer 3

• Such info would be required for users to understand other material info in FS. Like:

Keywords: Change, Alternative Standards, Developed in accordance to IAS 8, Significant judgement and Assumptions, Complex Accounting

• The condition of a change in AP during the period
• AP was chosen from alternative standards permitted by IFRS
• AP was developed in accordance to IAS 8 in the absence of IFRS standards
• AP relates to an area which the entity is required to make significant judgements and assumptions
• AP relates to complex accounting treatment