IFRS for SMEs / Third edition changes / Section 3 in the third edition: material accounting policy information
Section 3 in the third edition: material accounting policy information
The complete set of financial statements now calls for material accounting policy information in the notes, replacing the old requirement to disclose significant accounting policies.
What changes
- 3.17(e) The notes contain material accounting policy information rather than a summary of significant accounting policies.
What to prepare
- Cut generic policies that repeat the Standard without saying how the company applies it.
- Keep policies for material balances and for areas where the company made a choice or a judgement.
How Sight handles it
Sight selects policies from the accounts that carry a balance in the current or the comparative year, so a policy with nothing behind it is not printed.
Section 3: Financial Statement Presentation: the section in full.
Other third-edition changes
- Section 2 in the third edition: concepts and pervasive principles
- Section 4 in the third edition: disaggregating line items
- Section 6 in the third edition: dividends declared after year end
- Section 7 in the third edition: financing liabilities and supplier finance
- Section 8 in the third edition: material policies and judgements
- Section 11 in the third edition: one section for financial instruments, ageing and maturity
- Section 12 in the third edition: the new fair value section
- Section 19 in the third edition: business combinations
- Section 23 in the third edition: the five-step revenue model
- Section 29 in the third edition: uncertain tax treatments
Compile IFRS for SMEs financial statements from the ledger. SightAccounting selects the policies, builds the notes and checks the disclosures before you sign. Start a 60-day free trial.