Disclosures of the Effect of Material TrDisclosures of the Effect of Material Transactions and Events on the Information Conveyed in the Financial Report (Ref: Para. 13(e))

Disclosures of the Effect of Material Transactions and Events on the Information Conveyed in the Financial Report (Ref: Para. 13(e))

1. It is common for a financial report prepared in accordance with a general purpose framework to present an entity’s financial position, financial performance and cash flows. Evaluating whether, in view of the applicable financial reporting framework, the financial report provides adequate disclosures to enable the intended users to understand the effect of material transactions and events on the entity’s financial position, financial performance and cash flows includes consideration of such matters as:
   • The extent to which the information in the financial report is relevant and specific to the circumstances of the entity; and
   • Whether the disclosures are adequate to assist the intended users to understand:
     • The nature and extent of the entity’s potential assets and liabilities arising from transactions or events that do not meet the criteria for recognition (or the criteria for de‑recognition) established by the applicable financial reporting framework.
     • The nature and extent of risks of material misstatement arising from transactions and events.
     • The methods used and the assumptions and judgements made, and changes to them, that affect amounts presented or otherwise disclosed, including relevant sensitivity analyses.