BC43 The Board discussed whether entities should be exempt from aspects of the IFRS if disclosure could cause competitive damage or erosion of shareholder value. The Board considered an alternative approach whereby entities could be required to provide reasons for non‑disclosure on a 'comply or explain' basis.

BC44 The Board concluded that a 'competitive harm' exemption would be inappropriate because it would provide a means for broad non‑compliance with the IFRS. The Board noted that entities would be unlikely to suffer competitive harm from the required disclosures since most competitors have sources of detailed information about an entity other than its financial statements.

BC45 Respondents also commented that the requirements of the IFRS would place small listed companies at a disadvantage to non‑listed companies, which are outside the scope of the IFRS. The Board noted that the relative advantage/ disadvantage of an entity being publicly listed is not a matter for the Board to consider.