FRC's Thematic Review on IFRS 13

[Marek Muc]

Interesting read, regardless of your location.

https://www.frc.org.uk/getattachment/9b ... rement.pdf

[JakobLavrod]

Great reference Marek!

"Companies should avoid boilerplate and immaterial information". This goes for IFRS 9 as well. Reading disclosures, there is ALOT of boilerplate language that does not really help anyone or provide any explanation for how the company is using the standard.

[pub_acco]

I do have experience putting a lot of bullsh*t boilerplate disclosures around IFRS 9 and 13 I believe it's partly because, outside of financial industries, basically nobody understands IFRS 9 or 13. Neither do auditors. Sometimes they don't even understand what they are disclosing/auditing. Even if I understand financial instruments, it's very difficult to maintain an effective disclosure as an organization in such an environment.

[JakobLavrod]

Good point pub_acco, tho I would, as a counter argue that the disclosures are there primarily to assess the IFRS 9 model calculation, so if you are looking at investing in a bank, and have someone that is an expert on the standard read it, it really matters. But yes, can agree that external disclosures often are of less importance then the internal discussions.

[pub_acco]

Yeah that's true, when we look at banks, we'd expect useful IFRS 9 disclosures. Corporates in other industries, such as manufacturing and retailers, still put a lot of boilerplate disclosures in the significant accounting policy section, even when trade receivables only are their material financial instruments. I was one of those who produced such nonsensical footnotes.