BC76F Paragraph 117 of IAS 1 requires significant accounting policies [Disclosure of Accounting Policies, issued in February 2021, amended paragraphs 117-122 of IAS 1, which now refer to ‘material accounting policy information’.] to be disclosed and gives guidance, along with paragraphs 118-124 of IAS 1, about what a significant accounting policy could be. That guidance includes, as examples of significant accounting policies, the income taxes accounting policy and the foreign currency accounting policy.
BC76G Some suggested that it is not helpful to provide the income taxes accounting policy as an example of a policy that users of financial statements would expect to be disclosed. Being liable to income taxes is typical for many entities and it was not clear, from the example, what aspect of the entity’s operations would make a user of financial statements expect an accounting policy on income taxes to be disclosed. Consequently, the example does not illustrate why an accounting
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