Radical reform of the disclosure
framework will have serious implications for preparers and users of
accounts, says Helen Lloyd
In July 2012, the European Financial Reporting Advisory Group
(EFRAG), French Autorité des Normes Comptables (ANC) and the
Financial Reporting Council (FRC) issued a paper entitled Towards
a disclosure framework for the notes. The report asked what financial
statement note disclosures should be trying to achieve, and how standard
setters could support this goal by the way they draft disclosure requirements.
The objective of a disclosure framework is described as ensuring
that ‘all and only relevant information is disclosed in an
appropriate manner, so that detailed information does not obscure
relevant information in the notes to the financial statements.’
