Over the past decade, the modification of the economic environment (complexity of the capital markets, the development of the new classes of assets and the significant widespread use of fair value accounting) have created the conditions to include more detailed disclosures in the corporate reporting in order to facilitate the investors’ decision-making processes. As a result, the note disclosures in financial statements have increased considerably producing a tension between the importance of a “relevant and faithful representation” of corporate reporting and the complexity, subjectivity and less reliable nature of the disclosure. The essential role of the notes to the financial statements has led many standard setters to develop a framework for disclosures. Among others, the European Financial Reporting Advisory Group, within the broader context of its Proactive Work, the Authorité des Normes Comptables (ANC), and the Financial Reporting Council (FRC) published a Discussion Paper on 12 July 2012 entitled “Towards a Disclosure Framework for the Notes”, which aims to address the underlying principles and content of corporate disclosure to assist standard setters in developing disclosure requirements on a more consistent basis using a set of agreed principles. […]
