1. The views expressed in this presentation are those of the presenter, not necessarily those of the IASB or IFRS Foundation. © 2013 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org International Financial Reporting Standards Review of the Conceptual Framework Presentation and disclosure Kristy Robinson Technical Principal Li Li Lian Technical Manager Amy Bannister Technical Associate

2. Before we start… You can download the slides by clicking on the button below the slides window To ask a question, type into the designated text box on your screen and click submit A recording of the webcast will be available after the presentation at http://go.ifrs.org/Conceptual-Frameworkhttp://go.ifrs.org/Conceptual-Framework The views expressed are those of the presenters, not necessarily those of the IASB or IFRS Foundation 2 © IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

3. Project overview 3 Not a fundamental re-think Focus on weaknesses that have given problems in practice Filling in gaps, and updating and improving existing guidance Project objectives Preliminary views Starting point for further discussion and consultation Seeking your views by 14 January 2014 Discussion Paper objectives New Conceptual Framework will not override existing IFRSs Project consequences © IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

4. Overview Objective of this webinar Describe and explain the concepts in the Discussion Paper on presentation and disclosure What we will cover What ‘presentation’ and ‘disclosure’ mean The primary financial statements The notes to the financial statements Form of disclosure and presentation requirements Questions 4 © IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

5. What do ‘disclosure’ and ‘presentation’ mean? 5 © IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org Disclosure Presentation “the process of providing useful financial information about the reporting entity to users” “the disclosure of financial information on the face of an entity’s primary financial statements”

6. Primary financial statements 6 The Discussion Paper identifies the primary financial statements as: Statement of financial position Statement(s) of profit or loss and OCI Statement of changes in equity Statement of cash flows No primary financial statement is more important than the other primary statements. They should be looked at together.

7. Objective of the primary financial statements 7 © IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org Disclosure “to provide summarised information about recognised assets, liabilities, equity, income, expenses, changes in equity and cash flows that has been classified and aggregated in a manner that is useful to users of financial statements in making decisions about providing resources to the entity ” recognised economic resources and claims changes to those resources and claims how efficiently and effectively the entity’s management and governing board have discharged their responsibilities to use the entity’s resources

8. Classification and aggregation 8 © IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org Line items Present useful summarised information Aggregation The adding together of individual items within those classifications Classification The sorting of items based on shared qualities Determined by entity, but IASB may decide to require a particular line item to be presented

9. Offsetting 9 © IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org Disclosure Offsetting will generally not provide the most useful information because it combines dissimilar items, eg: –assets & liabilities –income & expenses –cash receipt & cash payments The IASB may choose to require offsetting when: –provides a faithful representation of items –necessary on cost-benefit grounds

10. The notes to the financial statements 10 © IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org Disclosure Scope Types of information Forward-looking information Objective To supplement the primary financial statements by providing additional useful information about: the assets, liabilities, equity, income, expenses, changes in equity and cash flows of the entity; and how efficiently and effectively the entity’s management and governing board have discharged their responsibilities to use the entity’s resources

11. Scope of the notes to the financial statements 11 © IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org Disclosure Type of information (scope)Examples Reporting entityInformation about subsidiaries, associates, parent, etc. Business model Amounts recognised in the primary financial statements Disaggregation of line items in primary financials Relationship between line items Unrecognised assets or liabilitiesDescription of unrecognised assets or liabilities and why they have not been recognised RisksTypes of financial risk How the entity has managed those risks Methods, assumptions and judgements Accounting policies Alternative measurements

12. Materiality Existing Conceptual Framework has a materiality concept The IASB’s preliminary view is that that concept of materiality is clearly described in the existing Conceptual Framework –not adding to or amending that description Another project on the IASB’s agenda looking at how the concept of materiality is applied 12

13. Form of disclosure and presentation requirements 13 Each Standard should have a clear disclosure objective Enables entities to determine whether the specified information is material for that entity Disclosure objectives When developing requirements IASB may need to consider the impact of technology, eg: Flexibility in order and level of aggregation Consistent use of terminology, total and subtotals Electronic format Disclosure as a form of communication See next slide Communication principles

14. 14 Seek to promote the disclosure of entity-specific useful information Result in disclosures that are clear, balanced and understandable Enable an entity to organise disclosures to highlight important information Linked to understand the relationship in the financial statements Not result in duplication of the same information Seek to optimise comparability without compromising the usefulness

15. 15 Disclosure project in parallel with Conceptual Framework project. Projects inform each other – some overlap Conceptual Framework Disclosure Initiative Materiality Objective of notes to FS Communication principles Form of disclosure requirements Disclosure Initiative

16. Questions 16 © IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

17. More information Discussion Paper http://go.ifrs.org/DP-Conceptual-Framework-July-2013 http://go.ifrs.org/DP-Conceptual-Framework-July-2013 –Comments to be received by 14 January 2014 Snapshot http://go.ifrs.org/Snapshot-DP-Conceptual-Framework-2013 http://go.ifrs.org/Snapshot-DP-Conceptual-Framework-2013 Existing Conceptual Framework http://eifrs.ifrs.org/eifrs/bnstandards/en/2013/conceptualframework.pdf http://eifrs.ifrs.org/eifrs/bnstandards/en/2013/conceptualframework.pdf Conceptual Framework website http://go.ifrs.org/Conceptual-Framework http://go.ifrs.org/Conceptual-Framework 17 © IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org

18. 18 Other webcasts © IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org DateTopic Tuesday 3 September 2013Definitions of assets and liabilities and recognition criteria Friday 13 September 2013Profit or loss and other comprehensive income (OCI) Friday 27 September 2013 Definition of equity and distinction between liability and equity elements Wednesday 2 October 2013Measurement Thursday 10 October 2013 Guidance on liability definition—obligations conditional on entity’s future actions Tuesday 22 October 2013Objective and Qualitative Characteristics Monday 25 November 2013Presentation and disclosure