The Financial Reporting Standards Council (FRSC) has approved on April 14, 2021 the adoption of amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements, Disclosure of Accounting Policies, issued by the International Accounting Standards Board (IASB) in February 2021 as amendments to PAS 1 Presentation of Financial Statements and PFRS Practice Statement 2 Making Materiality Judgements, Disclosure of Accounting Policies.
The amendments aim to help entities provide accounting policy disclosures that are more useful by:
- Replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies; and
- Adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.
An entity shall apply these amendments to annual reporting periods beginning on or after January 1, 2023. Earlier application of these amendments is permitted.
The preface to the foregoing amendments can be accessed here.