Introducing more IFRS principles of disclosures - Will the poor disclosers improve?

Carenys Jordi, Hellman Niclas, Soledad Moya Gutierrez

Producció científica: Contribució a una conferènciaContribució


The current paper discusses the possible effects of introducing more principles of disclosures and increased guidance on materiality as part of the IASB Disclosure Initiative. Based on our analysis, we argue that introducing more principles of disclosure must be accompanied by a clarification of the role of the specific disclosure requirements in IFRS Standards. It is not clear whether the suggested principles of disclosure are expected to replace specific requirements or whether such requirements should be seen as logically derived from the principles. We believe the former view will lead to a situation where compliance requirements become vague and not possible to enforce. The principles of disclosure target the best-in-class entities rather than clearly setting the minimum compliance level. In turn, this may lead to an unwarranted increase in flexibility for poor disclosers. We perform a literature review of academic research on how entities have complied with (specific) disclosure requirements in the past. The review shows a high variation across entities, including poor disclosers far below the average. The quality of auditors/audits emerges as one of the main drivers of compliance according to academic research, which provides some support for the need of specific requirements that can be audited and secure a certain minimum level of disclosures.
Idioma originalAnglès
Estat de la publicacióPublicada - 31 d’ag. 2017
EsdevenimentEuropean Financial Reporting (EUFIN) 2017 -
Durada: 31 d’ag. 20171 de set. 2017


ConferènciaEuropean Financial Reporting (EUFIN) 2017


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