$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Disclosure Initiative Principles Of Disclosure

tag 0 Download7 Pages / 1,648 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT


Discuss about the Disclosure Initiative- Principles of Disclosure.


This memo is prepared regarding the development of the proposed principles of effective communication, which the entities need to apply at the time of preparing their financial statements. After evaluating all the critical aspects, it is decided that the organisation would support such proposed principles, since this might increase the attention of the preparer to the basic financial reporting objective. In other words, it could be stated that such principles would deliver useful information to the users of the financial statements for aiding them in undertaking significant economic decisions ( 2018). In addition, the preparers would be encouraged to undertake effective approaches for communicating their story while improving the effectiveness of disclosures. From the viewpoint of the auditors, these principles could be used in the form of helpful references while discussing with the audit clients. However, well-defined objectives of disclosure need to supplement them at the standard and central level ( 2018).

Critical analysis of the proposed set of principles:

Even though the principles laid out in “Paragraph 2.6 of Section 2- Principles of Effective Communication” are considered appropriate, there needs to be consideration of the below-stated aspects:

Important matters:

According to “Point c of Paragraph 2.6”, principled regarding ‘important’ matters are described that seem to initiate another layer of evaluation, since the conceptual verge is ‘relevance’. Hence, additional explanations, instances and illustrations are needed for enabling prepares and others to understand and apply the ‘importance’ concept ( 2018).

Entity-specific and comparability:

Natural tension could be observed between some items such as ‘entity-specific’ and ‘comparability’. With the adoption of new reporting initiatives and technology, comparability over the years for the same organisation might be difficult to conduct in order to ensure effective communication ( 2018).


From the viewpoint of the auditors, it might be difficult for them in auditing and implementing the evaluation of whether few principles are adhered effectively or not. For instance, “Point g of Paragraph 2.6” states that it is necessary for an organisation to apply a suitable format or “Point c of Paragraph 2.6” takes into account the organisational principles in relation to the disclosures. Non-authoritative illustrative instances could be in these situations for understanding the thought process of the board (Tokara 2015).

Accessing information from peers:

In accordance with “Point f of Paragraph 2.6”, the financial information of an organisation is to be provided in a manner, which helps in optimising comparability among organisations and throughout the reporting periods without having to compromise the value of information ( 2018). However, it is not necessary for an organisation to access the needed information from peers for ascertaining whether the circumstances could be contrasted. Hence, in practice, this practice is extremely complex to implement in the business organisations (Pizzo et al. 2016).

Immaterial and material information:

It has been observed that there is no clarity regarding the way these principles would interact with the guidance laid out in “Point a of Paragraph 30 of IAS 1 Presentation of Financial Statements”. This particular paragraph states that immaterial information need not obscure material information. Hence, this paragraph signifies another principle related to effective communication (Pavi?, Žager and Rep 2017).

Thus, it could be stated that the prescription of the principles of effective communication needs to be made in the form of requirements in a general disclosure standard. The basis should be such that the financial statements are more probable to consider and apply the same in contrast to non-mandatory guidance. Hence, with the help of these principles, it would become easy for the preparers to access, instead of using a different kind of document such as practice statement (Islam, Nusrat and Karim 2016).


Other principles to be included in the proposed set of principles of effective communication:

It is recommended that the board should not develop non-mandatory guidance in relation to use of formatting in the financial statements, since formatting is not the primary problem in practice. Hence, any prescribed format or template might be an impediment to clear and brief reporting (Buchman, Harris and Liu 2016). It is suggested to the board to lay its concentration on other topics probable to have greater effect on communication effectiveness. More specifically, the board needs to take into account the digital reporting developments like XBRL and it is permitted or needed in few jurisdictions.

According to “Paragraph 2.21 of the Principles of Disclosure”, passive acknowledgement is provided to structured electronic data and electronic reports. By taking into account the progressive nature related to corporate reporting and financial reporting, additional detailed consideration of digital reporting needs to be a crucial part of the project. Finally, the guidance implementation needs to be incorporated in the form of non-mandatory portion of the standard identical to the other standards.

Short letter:

Orchel Accountants


Subject: Impact of proposed developments on property, plant and equipment

To: James Hines

From: Minea Chhim

According to “Point f Sub-point i of Paragraph 7.20 of Principles of Disclosure”, an organisation needs to provide various kinds of information regarding property, plant and equipment together ( 2018). For instance, as laid out in “Paragraph 16.X3 (f) of Example 2 in Principles of Disclosure”, an organisation is needed to enforce details of any other information required for representing the entire picture as a portion of the tier 1 disclosures. On the other hand, “Paragraph 16.X4 of Principles of Disclosure” states that an organisation is required to reveal information regarding property, plant and equipment along with the requirements of the above-stated paragraph in tier 2 disclosures ( 2018). As result, it might become complex for the business organisations to segregate between the needed financial information in compliance with the above two paragraphs.

However, the inclusion of these paragraphs would stress on the need for judgement to determine the information to be disclosed and the ways to disclose the same. In addition, the suggestion of NZASB could be accepted for using less prescriptive language at the time of drafting disclosure requirements in the standard. On the other hand, high doubts could be expressed regarding this approach, as no behavioural change would be inherent to encourage additional effective disclosures.

As per “Paragraphs 16.X5 - 16.X9 of Example 2 in Principles of Disclosure”, a group of potential information could be obtained from the staffs of NZASB, which an organisation is required to take into account information to be disclosed in the form of additional ones. Such type of information could be identified in the form of tier 2 information. This would guide the preparers on which consideration of information is required to be made in the evaluation of tier 2 information, since the requirement stated in “Paragraph 16.X4 of Principles of Disclosure” is not proper (Bradbury and Mear 2017). However, a risk is involved in such disclosure of property, plant and equipment. These instances would be treated in practice as a group of minimum requirement in future in the context of the business organisations.

Objections are raised to the use of ‘consider’ of ascertaining whether an items needs to be disclosed. The reason is that there are many preparers viewing the financial statements in the form of compliance burden and they intend to reveal minimum information in the financial statements (Kulikova, Samitova and Aletkin 2015). Hence, whether detailed breakdown of property, plant and equipment needs to be disclosed in the annual reports of the business organisations should vest on the preparers of the financial statements.

Even though the arguments against this approach might lead to over disclosure of property, plant and equipment, the adoption of the approach might result in risk of under disclosure. IASB needs to be encouraged to the multiple disclosure tiers with the minimum disclosure of requirements. Additional items could be taken into consideration, although the word ‘consider’ need not be used. Hence, it could be inferred that the approach of NZASB staffs would not lead to more effective disclosures due to the fact that detailed breakdown of property, plant and equipment in the provided case would lead to over disclosure.


References:, 2018. [online] Available at: [Accessed 22 Apr. 2018].

Bradbury, M.E. and Mear, K.M., 2017. Interpreting the Impact of IFRS Adoption. Australian Accounting Review, 27(2), pp.214-219.

Buchman, T., Harris, P. and Liu, M., 2016. GAAP vs. IFRS Treatment of Leases and the Impact on Financial Ratios., 2018. [online] Available at: [Accessed 22 Apr. 2018]., 2018. [online] Available at:$FILE/Comment%20letter%20%E2%80%93%20Principles%20of%20disclosure%20DP-FINAL.pdf [Accessed 22 Apr. 2018]., 2018. [online] Available at: [Accessed 22 Apr. 2018]., 2018. IFRS. [online] Available at: [Accessed 22 Apr. 2018].

Islam, M., Nusrat, F. and Karim, A.K.M., 2016. Revaluation of Property, Plant and Equipment (PPE) in Bangladesh: Motivations, Value Relevance, and Effects on Audit Fees.

Kulikova, L.I., Samitova, A.R. and Aletkin, P.A., 2015. Investment property measurement at fair value in the financial statements. Mediterranean Journal of Social Sciences, 6(1 S3), p.401.

Pavi?, I., Žager, K., and Rep, A., 2017. Significance of Notes to the Financial Statements in Business Decision Making. Theory and Applications in the Knowledge Economy, 28.

Pizzo, M., Moscariello, N., Teodori, C., Veneziani, M., Rocca, L., Quagli, A., and Roncagliolo, E., 2016. Who Influences Whom? An Exploratory Analysis of the Interrelations between Accounting Research and the IASB’s Standard Setting Activity. Financial reporting.

Tokara, M., 2015. What kind of accounting standards. Accounting and Management Information Systems, 14(3), 439.

Download Sample

Get 100% money back after download, simply upload your unique content* of similar no. of pages or more. We verify your content and once successfully verified 100% value credited to your wallet within 7 days.

Upload Unique Document

Document Under Evaluation

Get Credits into Your Wallet

*The content must not be available online or in our existing Database to qualify as unique.

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2019). Disclosure Initiative Principles Of Disclosure. Retrieved from

"Disclosure Initiative Principles Of Disclosure." My Assignment Help, 2019,

My Assignment Help (2019) Disclosure Initiative Principles Of Disclosure [Online]. Available from:
[Accessed 12 July 2020].

My Assignment Help. 'Disclosure Initiative Principles Of Disclosure' (My Assignment Help, 2019) <> accessed 12 July 2020.

My Assignment Help. Disclosure Initiative Principles Of Disclosure [Internet]. My Assignment Help. 2019 [cited 12 July 2020]. Available from:

Preparing a detailed and impeccable dissertation paper is like walking on thin ice. If you’re not sure how to make your dissertation stand out then hiring our services would be a novel idea. We will extend our assistance right from the dissertation proposal to the main document. Our writers focus on presenting clear dissertation structure before writing the paper. They are perfectly familiar with how to write a dissertation, so you can expect a brilliant assistance from them every time. Moreover, our website offers well-written dissertation examples and samples which will give a clear idea about the efficiency of or writers.

Latest Accounting Samples

ACCT20074 Contemporary Accounting Theory

Download : 0 | Pages : 12

Answer: Introduction The primary focus of the assessment is to formulate a detailed study regarding concepts of measurement and the relevance of the same in the process of accounting. The accountants consider measurement of financial information to be an integral part of the accounting system. The assessment would be looking into the IASB framework for the purpose of reporting and measuring financial aspects of the business (Reports. 202...

Read More arrow Tags: Australia 5 Contemporary accounting theory Central Queensland University 

MA501 Foundation Of Accounting

Download : 0 | Page : 1


Accounting Practice Set [now finished]

You have now finished the practice set. Your result is recorded in our database.
Click Home to be returned to your home page.


Read More arrow Tags: Australia 5 MA501 Melbourne Institute of Technology 

ACG315 Accounting And Finance For Fluctuating Revenues And Company Size

Download : 0 | Pages : 3
  • Course Code: ACG315
  • University: University Of Bedfordshire
  • Country: United Kingdom

Answer: Task One The change of taxation rules and regulation of conventional and statute laws have always confused willing, compliant firms. Different stakeholders take part in helping the companies adapt to the new changes. The actualization of this checks and balances lower down to the firm accountant. He, therefore, deals with the confusion at a more significant level.  We, therefore, discuss the confusing issues and the role of the a...

Read More arrow Tags: Australia Homebush Management Java - Car Parking Management System University of New South Wales Humanities 

SBLC4003 Business Accounting

Download : 0 | Pages : 11
  • Course Code: SBLC4003
  • University: University Of Wales Trinity Saint David
  • Country: United Kingdom

Answer: Introduction: Every entity has to prepare the financial statements, on a regular basis, to communicate the financial results of the business operated by it. These financial statements contain the summarised information expressed in financial terms about all the transactions and events that are entered into during the course of business. All the financial information that helps the readers to assess the financial health of business of ...

Read More arrow

ACC510 Financial Statements Analysis For Contingent Assets And Contingent Liabilities

Download : 0 | Pages : 7

Answer: Introduction The issue that is presented is that the accounting statements of Billabong  International Limited should has been asked to be analyzed in order to determine the fact whether the accounting reports are prepared in compliance to the prescribed standards for the purpose of determining the reliability of the accounting statements. The financial report of the company is analyzed to discuss the important points that are me...

Read More arrow Tags: Australia Toowoomba Management Java University of New South Wales 

Save Time & improve Grade

Just share Requriment and get customize Solution.

We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits




Overall Rating



Our Amazing Features


On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.


Plagiarism Free Work

Using reliable plagiarism detection software, only provide customized 100 percent original papers.


24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.


Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.


Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

529 Order Completed

95% Response Time

Ivan Blank

PhD in Functional Human Biology

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

440 Order Completed

99% Response Time

Jack Arens


London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2279 Order Completed

97% Response Time

Zachary Perez

PhD in Computer Science and Information System

Washington, United States

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

134 Order Completed

95% Response Time

Thomas Nelson

MS in Information Systems Technology with Specialization in Database Administration

New Jersey, United States

Hire Me

FREE Tools


Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.


Essay Typer

Get different kinds of essays typed in minutes with clicks.


GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.


Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.


Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability




Your Approx Earning

Live Review

Our Mission Client Satisfaction

good it was perfect clear answer just what i need for ode thank you so much!! clear and in steps


User Id: 304633 - 12 Jul 2020


student rating student rating student rating student rating student rating

The current help needs to improve on his English writing. While the coach was helpful in providing the content, I had to rework the context of whole paper to make it readable for the level of output expected. But overall it was helpful since I don't ...


User Id: 223122 - 12 Jul 2020


student rating student rating student rating student rating student rating

Work is perfectly written, though not graded yet but I’m being optimistic that a good grade will be awarded.


User Id: 369420 - 12 Jul 2020


student rating student rating student rating student rating student rating

It was well written and I\'m 100% satisfied. The expert knew exactly what to do and finished well above my expectations.


User Id: 332269 - 12 Jul 2020


student rating student rating student rating student rating student rating
callback request mobile
Have any Query?