The International Accounting Standards Board (IASB) on April 21 published a proposed update to the IFRS Taxonomy 2021 to reflect the following amendments to the IFRS Standards, issued by the Board in February:
- Disclosure of Accounting Policies, which amends IAS 1, Presentation of Financial Statements, and IFRS Practice Statement 2, Making Materiality Judgements; and
- Definition of Accounting Estimates, which amends IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors.
Disclosure of Accounting Policies amended IAS 1 and IFRS Practice Statement 2 to require entities to disclose their material accounting policy information instead of their significant accounting policies.
To reflect the amended disclosure requirements of IAS 1 in the IFRS Taxonomy, the Board proposes to:
- add two IFRS Taxonomy elements (paragraphs 4–6, 14–15);
- deprecate two IFRS Taxonomy elements (paragraphs 4–7);
- change labels, reference type, and reference of one IFRS Taxonomy element (paragraphs 8–11); and
- change the reference of 90 common practice elements (paragraphs 12–13).
Definition of Accounting Estimates Definition of Accounting Estimates amended IAS 8 to introduce a definition of ‘accounting estimates’ and provide other clarifications to help entities distinguish accounting policies from accounting estimates.
To reflect the definition of ‘accounting estimates,’ the Board proposes to change the documentation label of one IFRS Taxonomy element (paragraphs 18–19)
The IFRS Taxonomy enables electronic reporting of financial information prepared in line with IFRS Standards, the IASB said. Preparers can use the IFRS Taxonomy to tag disclosures, making them easy for investors to access online.
The IFRS Taxonomy 2021 is based on IFRS Standards in place as of January 1, including those issued but not yet effective, according to the IASB.
The deadline for submitting comments on the proposed update is June 21.
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