Aggregation, Disaggregation, And Materiality – FAQ | IFRS

Aggregation, disaggregation, and materiality

Aggregation, disaggregation, and materiality are cornerstones of financial reporting using IFRS. Here is a summary of the financial reporting items that include (mostly) disclosure requirements that relate to these cornerstones. See also Aggregation for an overview of general financial reporting rules in that respect.

Fair value measurement

Present additional line items (including by disaggregating the line items listed in IAS 1 54), headings and subtotals in the statement of financial position when such presentation is relevant to an understanding of the entity’s financial position. This may require additional line items when the size, nature or function of an item or aggregation of similar items is such that separate presentation is relevant to an understanding of the entity’s financial position. [IAS 1 55, IAS 1 57(a)]

Valuation techniques, inputs and valuation measurements using unobservable (Level 3) inputs

If the disclosures provided in accordance with IFRS 13 91 and other IFRSs are insufficient to meet the objectives in IFRS 13 91, then disclose additional information necessary to meet those objectives. Consider how much aggregation or disaggregation to undertake. [IFRS 13 92(c)]

Classes of assets and liabilities

Determining appropriate classes of assets and liabilities for which disclosures about fair value measurements should be provided requires judgement. A class of assets and liabilities will often require greater disaggregation than the line items presented in the statement of financial position. However, the entity provides information sufficient to permit reconciliation to the line items presented in the statement of financial position. If another IFRS specifies the class for an asset or a liability, then the entity may use that class in providing the disclosures required in IFRS 13 if that class meets the requirements in IFRS 13 94.

Hedge accounting

The effect hedge accounting has on the financial position, profit or loss, other comprehensive income and changes in equity

To meet the objectives in IFRS 7 21A, an entity (except as otherwise specified below) determines how much detail to disclose, how much emphasis to place on different aspects of the disclosure requirements, the appropriate level of aggregation or disaggregation, and whether users of financial statements need additional explanations to evaluate the quantitative information disclosed.

However, an entity uses the same level of aggregation or disaggregation it uses for disclosure requirements of related information in this IFRS and IFRS 13 Fair Value Measurement. [IFRS 7 21D]

Financial instruments

Reconciliation of each component of equity and analysis of OCI

Disclose the information required in IFRS 7 24E separately by risk category. This disaggregation by risk may be provided in the notes to the financial statements. [IFRS 7 24F]

Revenue

Aggregate or disaggregate disclosures so that useful information is not obscured by either the inclusion of a large amount of insignificant detail or the aggregation of items that have substantially different characteristics. [IFRS 15 111]

Insurance contracts

Aggregate or disaggregate information so that useful information is not obscured either by the inclusion of a large amount of insignificant detail or by the aggregation of items that have different characteristics. Examples of aggregation bases that might be appropriate for disclosure purposes including the following:

  1. type of contract (e.g. major product lines);
  2. geographical area (e.g. country or region); or
  3. reportable segment, as defined in IFRS 8. [IAS 1 29 – 31, IFRS 17 95 – 96]

Insurance finance income or expenses

For direct participating contracts if the basis of disaggregation of insurance finance income or expenses between profit or loss and OCI changes (applying IFRS 17 B135) – in the period when the change in approach occurred, disclose the reason why the change to the basis of disaggregation was required. [IFRS 17 113 (a)]

Impairment of a cash-generating unit

Disclose for a cash-generating unit, for which an impairment loss has been recognised or reversed during the period if the aggregation of assets for identifying the cash-generating unit has changed since the previous estimate of the cash-generating unit’s recoverable amount (if any), describe the current and former way of aggregating assets and the reasons for changing the way the cash-generating unit is identified. [IAS 36 130(d)(iii)]

Associates and joint arrangements

Aggregate or disaggregate disclosures so that useful information is not obscured by either the inclusion of a large amount of insignificant detail or the aggregation of items that have different characteristics (see IFRS 12 B2–B6). [IFRS 12 4]

Defined benefit plans

Disclosures of characteristics, risks, identification of amounts in the financial statements and effects on amount, timing and uncertainty of defined benefit plans

To meet the objectives in IAS 19 135, consider how much aggregation or disaggregation to undertake. [IAS 19 136(c)]

Operating segments

Disclose general information regarding judgements made by management in applying the aggregation criteria in IFRS 8 12. This includes a brief description of the operating segments that have been aggregated in this way and the economic indicators that have been assessed in determining that the aggregated operating segments share similar economic characteristics. [IFRS 8 22(aa)]

Related party transactions

Disclose items of similar nature in aggregate except when separate disclosure is necessary to understand the effects of related party transactions on the financial statements. [IAS 24 24]

Regular deferral accounts

To meet the objectives in IFRS 14 27, consider how much aggregation or disaggregation to undertake. [IFRS 14 29(c)]

Disclosure – aggregation and materiality

Disclosure – aggregation and materiality Disclosure – aggregation and materiality Disclosure – aggregation and materiality

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