The IFRS Foundation has published a report showing how six entities from different jurisdictions have improved communication in their IFRS financial statements. The report aims to demonstrate how improvements can be made and to inspire other entities to initiate their own improvement projects.
Better Communication in Financial Reporting – Making disclosures more meaningful contains six case studies from a range of industries.
The report explains the process the six entities went through to improve disclosures in the notes to their IFRS financial statements and shows examples of the improvements made. By identifying what information is relevant, prioritising it appropriately and presenting it in a clear and simple manner, they have made their financial statements easier for investors to read and understand. Through the use of examples, the report shows that relatively small changes can significantly improve the quality of the financial information that entities provide.
The report forms part of the IASB’s work under the theme of Better Communication in Financial Reporting and complements other initiatives, including the Principles of Disclosure project and the recently published IFRS Practice Statement 2 Making Materiality Judgements.
The case studies included in the report are Fonterra Co-operative Group Limited, Wesfarmers Limited, PotashCorp, ITV plc, Orange S.A. and Pandora A/S.
The case study report can be accessed here.