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Current stage

The Board began to redeliberate proposals in the Exposure Draft General Presentation and Disclosures in March 2021. The Exposure Draft, published in December 2019, proposes to improve how information is communicated in the financial statements, with a focus on information in the statement of profit or loss. The Board discussed feedback on the Exposure Draft in December 2020 and January 2021.

IASB® Update April 2021

The Board met on 27 April 2021 to redeliberate the proposals in the Exposure Draft General Presentation and Disclosures relating to principles of aggregation and disaggregation and roles of the primary financial statements and the notes.

Principles of aggregation and disaggregation and roles of the primary financial statements and the notes (Agenda Paper 21A)

The Board tentatively decided:

  1. in relation to the principles of aggregation and disaggregation to:
    1. state the purpose of disaggregation more clearly—items shall be disaggregated if the resulting disaggregated information is material. All 13 Board members agreed with this decision. 
    2. strengthen the application of that principle by emphasising that a single dissimilar (non-shared) characteristic between items would be sufficient to require an entity to disaggregate information about those items if that information were material. All 13 Board members agreed with this decision.
    3. explore developing guidance for entities on how to use characteristics to identify when to aggregate or disaggregate items. All 13 Board members agreed with this decision.
  2. in relation to the roles of the primary financial statements to:
    1. not reinstate paragraph 29 of IAS 1 Presentation of Financial Statements in the new IFRS Standard because it is not possible to require an entity to present complete disaggregation of material information in the primary financial statements. All 13 Board members agreed with this decision.
    2. include a reference to understandability in the description of the role of the primary financial statements. All 13 Board members agreed with this decision.

The drafting resulting from the decisions in paragraph (b) will clarify that the objective of paragraph 29 of IAS 1 continues to apply, in that entities will be required to disaggregate material information. However, the requirement for presentation in the primary financial statements will refer to information that results in an understandable summary of an entity’s assets, liabilities, equity, income and expenses.

The Board also discussed the implications of digital reporting for the requirements in the new Standard. The Board was not asked to make any decisions.

Next milestone

IFRS Standard


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