[Global Financial Insights] IASB Proposes an Update to IFRS Accounting Taxonomy for IFRS 18

Global Financial Insights is a weekly feature for the Accounts and Audit Module subscribers of Taxmann.com. It provides you with the latest updates on financial reporting, and auditing practices from across the globe. Here is this week’s financial update.

1. IASB proposes an update to the IFRS Accounting Taxonomy for IFRS 18

IFRS 18 (Presentation and Disclosure in Financial Statements) aims to improve financial reporting through adequate disclosure and provide better communication of financial performance to investors. The International Accounting Standards Board (IASB) proposes to amendthe IFRS Accounting Taxonomy for the presentation and disclosure requirement in IFRS 18. Since the comparability of information plays a pivotal role in investors’ understanding of financial performance, IASB proposes amendments to facilitate the comparability and analysis of tagged information.

The proposed changes include the following:

• Line-item modelling for conveying category information (such as operating, investing, financing) for the statement of profit or loss; and
• Dimensional modelling for tagging disclosures on management-defined performance measures (MPMs) and specified expenses by nature, as these link to information in the statement of profit or loss.

The comments on this proposal can be sent by 3rd September 2024.

Source: IFRS Foundation

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