Disclosing the impact of an accounting standard that you have not yet adopted - an oxymoron?
Our private lives require each of us to continually make choices. Having chosen to take a local beach holiday this year and an overseas resort holiday in two years time we typically do not concern ourselves with the overseas holiday until much closer to its occurrence.
Accounting standards are different. Having made a decision not to apply a new accounting standard that has been issued but is not yet effective there is a requirement to report on the possible impact it will have when it is applied (AASB 108 paragraphs 30 and 31).
Reporting against accounting standards adopted presents immediate challenges. The principle underlying disclosure is the provision of useful information.
We don't fixate on a holiday two years away because so much can change, particularly the myriad of events that are outside of our control (hurricanes, military coup and currency crash come to mind). Is reporting the impact of an accounting standard requirement not yet adopted adding the quality of information - or an oxymoron?