The International Accounting Standards Board (IASB) has concluded its decision-making on two projects—its final steps before drafting and balloting two new IFRS Accounting Standards that are expected to be issued in 2024.
This article highlights the two new international Financial Reporting Standards (IFRS) expected to be issued in 2024 by the International Financial Reporting Standards Board, their purposes as well as their benefits to the Financial Reporting stakeholders and users.
The two new international Financial Reporting Standards (IFRS) expected to be issued in 2024, their purposes and benefits are detailed below:
1. IFRS resulting from Primary financial statements project
This is the first of these forthcoming Accounting Standards.The IASB expects to issue the new Accounting Standards in the first half of 2024.
A) Purpose Of The 1st Expected IFRS
This Standard is designed to clarify and enhance information companies provide about their financial performance and will supersede IAS 1 Presentation of Financial Statements.
B) Benefits Of The New IFRS To Stakeholders And Users
The first new Accounting Standard will result in companies reporting more consistently and transparently on their financial performance, making it easier for investors to compare companies. It will help to build trust between companies and investors and ultimately ease the flow of capital.
The IASB is now satisfied that it has refined its original proposals published in 2019 to reflect stakeholder feedback. This new Standard is the result of the Primary Financial Statements project and will supersede IAS 1 Presentation of Financial Statements.
2. Standard resulting from the project on subsidiaries without public accountability
This is the second new expected standard that results from the project on subsidiaries without public accountability.
A) Purpose Of The 2nd Expected IFRS
This proposed international Financial Reporting Standard is intended to reduce disclosure requirements for subsidiaries that are not traded on a public market or holds assets entrusted to them by their customers.
B) Benefits Of The New IFRS To Stakeholders And Users
This Standard will enable those subsidiaries to prepare full IFRS financial statements locally by using the information reported to their parent company but with reduced disclosures. This new Standard is the result of the Subsidiaries without Public Accountability: Disclosures project.
Effective Date Of The 2 New Standards
The IASB has decided that the effective date of both new Accounting Standards will be for annual reporting periods beginning on or after 1 January 2027 to give companies sufficient time to implement the new requirements. Earlier application will be permitted.
IFRS Balloting Process
Both projects are now starting the balloting process, an approval process designed to ensure the new Accounting Standards accurately reflect the IASB decisions.
See also: IFRS to take effect from January 2024
In conclusion, The IASB is set to issue 2 new financial reporting standards in 2024. The first new standard will result from the primary financial statements project and will supersede IAS 1 Presentation of Financial Statements. The second new standard will result from the project on subsidiaries without public accountability and is intended to reduce disclosure requirements for subsidiaries that are not traded on a public market.The IASB expects to issue the new standards in the first half of 2024 and the effective date of both new standards will be for annual reporting periods beginning on or after 1 January 2027.
For more details see IAS Plus website
Please click to see the announcement on the IFRS Foundation website.
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