Disclosures
Disclosures provide information in the primary financial statements and accompanying notes that helps users understand recognised amounts, accounting policies, estimates, risks and relevant unrecognised items. Some disclosures are narrative; others give numerical analyses or reconciliations. Their purpose is useful communication under the relevant standards, with material information clearly presented.
Worked example
A provision note may explain the nature of a legal dispute, uncertainties and movements in the provision during the year.
Common mistake
Disclosure does not cure an incorrect recognition or measurement decision: putting a misleading asset figure in the statement with a note is not sufficient.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| FIA | FFA | Direct | September 2026–June 2027 |