EFRAG has completed its due process regarding Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12), and has submitted its Endorsement Advice Letter and Effects Study Report to the EC.
The IASB issued the Amendments on 28 June, 2012. The relief provided by the Amendments is limited to the period when IFRS 10, IFRS 11 and IFRS 12 are first applied.
The objective of the Amendments is to clarify the IASB’s intention when first issuing the transition guidance in IFRS 10 Consolidated Financial Statements. The Amendments also provide additional transition relief in IFRS 10, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities, limiting the requirement to provide adjusted comparative information to only the preceding comparative period. Furthermore, for disclosures related to unconsolidated structured entities, the amendments will remove the requirement to present comparative information for periods before IFRS 12 is first applied. The Amendments are effective for annual periods beginning on or after 1 January 2013, with earlier application permitted.
EFRAG has issued its Endorsement Advice and Effects Study Report relating to the Amendments for use in the European Union and European Economic Area. EFRAG supports the adoption of the Amendments and recommends their endorsement. Notwithstanding the positive recommendation that the Amendments meet the endorsement criteria, and in order to align the mandatory effective date of the Amendments with the effective date of IFRS 10, IFRS11 and IFRS 12, EFRAG’s recommendation is to defer the mandatory effective date of the Amendments from 1 January 2013 to 1 January 2014, with early adoption permitted.
Press release
© EFRAG - European Financial Reporting Advisory Group
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