EFRAG has completed its due process regarding Annual Improvements to IFRS Standards 2014-2016 Cycle and has submitted its Endorsement Advice Letter to the EC.
The objective of the Amendments is to address non-urgent but necessary issues discussed by the IASB during the project cycle that began in 2014 on areas of inconsistency in IFRS Standards or where clarification of wording is required.
EFRAG has concluded that the Amendments meet the qualitative characteristics of relevance, reliability, comparability and understandability required to support economic decisions and the assessment of stewardship, raises no issues regarding prudent accounting, and that they are not contrary to the true and fair view principle. EFRAG has also concluded that the Amendments are conducive to the European public good. Therefore, EFRAG recommends the Amendments for endorsement without further delay.
EFRAG notes that the amendment to IFRS 12 Disclosure of Interests in Other Entities applies retrospectively for annual periods beginning on or after 1 January 2017, despite being issued only in December 2016. The IASB determined that this very short implementation period is reasonable in this case because the amendment is clarifying in nature and entities would typically be required to apply it for the year ended 31 December 2017 at the earliest. EFRAG considers that the approach required by the amendment to IFRS 12 is already followed by many entities. EFRAG also agrees that entities that do not already follow this approach should have no particular difficulty in doing so by 31 December 2017 even if it is endorsed in the EU only shortly before that date.
Full press release
Full Endorsement Advice Letter
© EFRAG - European Financial Reporting Advisory Group
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