What must be disclosed in IFRS financial statements?

Under IAS 8.30–31, entities must disclose information about new IFRS standards and amendments that have been issued but are not yet effective at the reporting date.

For each new or amended standard that is not yet effective, the entity should disclose:

1. The title of the standard or amendment

2. The effective date (and whether earlier application is permitted)

3. Whether the entity has early adopted it

4. An assessment of the expected impact on the financial statements:

   • A statement that it is not expected to have a material impact, or

   • A description of the expected qualitative and/or quantitative impact, if material

5. Where relevant, whether the standard has been endorsed by the EU (for EU reporters)

When no material impact is expected

If management concludes that the new or amended standards will not have a material effect, a concise statement confirming this is sufficient.

However, care is required for major new standards (e.g. IFRS 18) where it may be difficult to assert that there will be no material impact. In such cases, more detailed explanation is typically expected.

EU endorsement consideration

Entities reporting under EU-endorsed IFRS must also consider whether a standard:

• Has not yet been endorsed by the EU at the date the financial statements are authorised for issue.

• Requires separate disclosure regarding endorsement status.

Level of detail required

The extent of disclosure depends on:

• The proximity of the effective date

• The entity’s progress in assessing implementation

• Whether the impact is expected to be material

As the effective date approaches, disclosure should become more detailed, including quantitative information where reasonably estimable.