The Accounting Department of the Ministry of Finance ("MOF") has recently issued the Disclosure of Accounting Policies – Proposed Amendments to International Accounting Standard (IAS) No.1 and International Financial Reporting Standards (IFRS) Practice Statement No.2 (Exposure Draft) (the "Exposure Draft") enacted by the International Accounting Standards Board ("IASB"), to seek opinions from the entities concerned by November 15, 2019, and also encourages the entities concerned to submit their feedback in their own name directly to the IASB.
According to the Exposure Draft, IAS 1: Presentation of Financial Statements requires entities to disclose their "significant" accounting policies, and the board proposes to replace that requirement with a requirement to disclose "material' accounting policies". In addition, the board proposes amendments to IAS 1: Presentation of Financial Statements and IFRS Practice Statement 2: Making Materiality Judgements to help entities apply the concept of materiality in making decisions about accounting policy disclosures. Among the six questions for respondents is the "proposed new paragraph 117B of IAS 1: Presentation of Financial Statements that will list examples of circumstances in which an entity is likely to consider an accounting policy to be material to its financial statements".