The IASB has issued an exposure draft (ED) General Presentation and Disclosures as part of its Primary Financial Statements (PFS) project. The comment letter period is open until 30 June 2020.
The IASB announced that due to the COVID-19 pandemic, the deadline for comments on the Primary Financial Statements ED is now 30 September (instead of 30 June).
ED general presentation disclosures.pdf
snapshot ED general presentation disclosures.pdf
The ED’s proposals cover three main topics:
New subtotals in the statement of profit or loss
· operating profit or loss
· operating profit or loss and income and expenses from integral associates and joint ventures
· profit or loss before financing and income tax
This entails presenting income and expense in the following categories
· operating, covering the entity’s main business activities – including insurance finance income and expenses included in profit or loss applying IFRS 17 Insurance Contracts
· integral associates and joint ventures
· investing
· financing
‘Non-GAAP’ transparency – management performance measure disclosures
· explaining why the measures provide useful information
· explaining how they are calculated
· providing a reconciliation to the most comparable profit subtotal specified by IFRS Standards.
Improved disaggregation of information
· new guidance to help companies disaggregate information in the most useful way for investors
· requirement to provide better analysis of operating expenses
· requirement to identify and explain in the notes any unusual income or expenses, using the Board’s definition of ‘unusual’
Insurance Europe response to IASB and EFRAG:
Response to IASB ED20197 General Presentation and Disclosures.pdf
Response to EFRAG IASB ED20197 General Presentation and Disclosures.pdf
EFRAG’s response to the IASB’s Exposure Draft 2019/7 General Presentation and Disclosures
EFRAG Final Comment Letter on Primary Financial Statements.pdf