Responses to IASB Documents for Comment
IAS 1 Presentation of Financial Statements
Exposure Draft - Definition of Material (Proposed amendments to IAS 1 and IAS 8) – September 2017
On January 11, 2018, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in September 2017. The letter agrees with some parts of the proposals but expresses concern with including terms such as “obscuring”, “omitting” and “misstating” in the definition of material. The AcSB suggests removing these terms of the definition because the AcSB thinks that the terms may make the definition difficult to operationalize or apply and may lead to increased litigation risk. Furthermore, the AcSB encourages the IASB to work with the International Auditing and Assurance Board to ensure that its definition of material aligns with the assurance definition. Read the AcSB letter posted by the IASB.
Classification of Liabilities (Proposed amendments to IAS 1) – February 2015
On June 10, 2015, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in February 2015. The letter notes that there is a need to clarify the criteria for classification of a liability as either current or non-current but does not agree with the proposals as written. The letter does not support the proposed amendments because the revised wording does not provide greater clarity, represents a step backward and would result in greater diversity in practice. The letter expresses concern that attempting to address only a few issues on a narrow scope basis on a standard that has no clear principle articulated with regard to classification of liabilities raises a host of issues. The letter suggests that a more comprehensive project that identifies a principle and addresses the inconsistency with other requirements of the standard is necessary. Read the AcSB letter posted by the IASB.
Exposure Draft – Disclosure Initiative (Proposed amendments to IAS 1) – March 2014
On July 18, 2014, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in March 2014. The letter supports the proposals to clarify the requirements in IAS 1 as a useful first step in the IASB’s disclosure initiative and includes a number of detailed suggestions. Read the AcSB letter posted by the IASB.
Exposure Draft – Presentation of Items of Other Comprehensive Income (Proposed amendments to IAS 1) – May 2010
On September 30, 2010, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft. Overall, the letter supports the IASB’s proposals. However, the letter emphasizes that the proposals have limited effectiveness without a conceptual basis for determining which items should be included in other comprehensive income rather than profit or loss, and which items of other comprehensive income should be recycled. The AcSB letter posted by the IASB is available here.