On December 18, 2014, as Part of Its Disclosure Initiative,28

question 12

Essay

On December 18, 2014, as part of its Disclosure Initiative,28 the IASB issued amendments to IAS No. 1 to encourage companies to apply professional judgment in determining what information to disclose and how to structure it in their financial statements. What are the key aspects of this proposal?

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Definitions:

Cumulative

Refers to something increasing in quantity, degree, or force by successive additions, often used in the context of cumulative dividends or interest.

Non-cumulative

A term, often referring to preferred shares or dividends, indicating that if a dividend is not declared, it does not accumulate and is not owed in future periods.

Participating

In the context of financial securities, participating refers to the characteristic of a security that allows its holder to receive additional dividends or profits beyond a specified amount.

Non-cumulative Preferred Stock

A type of preferred stock where dividends are not accumulated if they are not declared.