Case study report on improving disclosures

On 5 October 2017, the IASB issued a case study report entitled Making disclosures more meaningful, looking at how six companies have improved their disclosures in term of both the improvement process and its outcomes.

Keywords: Mazars, Thailand, IFRS, IASB, IAS 28, IFRS 9

19 December 2017

In its analysis, the IASB did not address the compliance of the disclosures concerned with IFRS standards, but selected examples of the application of the seven principles of sound financial reporting set out in its recent practice statement and in its discussion document on the principles of financial disclosure.

IASB President Hans Hoogervorst notes that the case study proves that relatively small changes can significantly enhance the usefulness of financial statements for their users, not least because they make them easier to read: the information is prioritised appropriately and presented in a clearer and more straightforward manner. Some companies had removed immaterial information, while others had included additional details on certain topics.

The key factors for the success of such projects are the support of senior management, dialogue with users to identify and understand their information needs, the participation of departments concerned by disclosures and financial reporting right across the company, and finally the support of auditors, regulators and national standard-setters.

The projects carried out by the companies featured are more or less ambitious and more or less continuous in time. Some made dramatic changes during a single reporting period while others have been making improvements over several years. What is important is to get started on this process of improvement.

The IASB’s case study is available on the IFRS website