Chapter 10 - Disclosure standards

Abstract

This chapter focuses on the various accounting standards used for disclosure of financial information. The IAS 10 standard prescribes when an entity should adjust its financial statements for events after the balance sheet date and prescribes the disclosures about the date of authorization of the financial statements, for both adjusting and nonadjusting events, and also the disclosure of nonadjusting events themselves. This standard should apply in accounting for and disclosure of events after the balance sheet date. The IAS 14 standard establishes principles for reporting segment information with the aim of helping users to understand the past performance better, assess the entity's risks and returns better, and making more informed judgements about the entity as a whole. The IAS 14 applies to the full financial statements that comply with IASs and are applied by entities whose equity or debt is publically traded or are in the process of issuing those instruments in the public securities markets. It is required only for consolidated accounts but if a subsidiary is itself publically traded then it must also be presented in its own separate financial report. The IFRS 8 standard is applied for periods beginning on or after January 1, 2009 by all entities, which have traded in a public market or are in the process of filing with a securities commission. The information should be disclosed to enable users to evaluate the nature and financial effects of the types of business activities in which it engages and the economic environments in which it operates.