Hans Hoogervorst, Chair of the IASB, delivered a speech at the Korean Accounting Review International Symposium in Seoul, Korea, on March 31, 2015, entitled "Mind the Gap (Between non-GAAP and GAAP)." In this presentation, he spoke of issues related to the IASB's disclosure initiative, particularly corporate reporting of non-GAAP measures and the need for professional judgement when making disclosure decisions.

Instructions

Access Mr. Hoogervorst's March 31, 2015 speech and IAS 1 Presentation of Financial Statements on the IASB website (www. ifrs.org).

(a) What is meant by "non-GAAP measures"? Explain Mr. Hoogervorst's position on such measures and why they are a concern to the IASB.

(b) What disclosure issues does Mr. Hoogervorst identify that require professional judgement? What does he mean by "boilerplate" disclosures? What is meant by professional judgement?