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EFRAG supports the IASB's proposals to present an operating, investing and financing category in the statement of profit or loss to improve comparability and reduce diversity in practice. However, EFRAG has reservations over some of the proposals in the ED:
EFRAG is also seeking views from constituents on the IASB's approach to consider as part of the financing category the income and expenses that arise from:
EFRAG considers that separate presentation of integral and non-integral associates and joint ventures will result in relevant information for users of financial statements and enhance comparability. EFRAG highlights that such presentation will involve significant judgement and needs to be tested in practice.
EFRAG welcomes the IASB's efforts to provide guidance on management performance measures (MPMs) which are often used in practice and additional guidance on non-IFRS measures could bring more transparency and consistency on their use. However, EFRAG highlights a number of challenges in regard to the ED proposals and is seeking views of its constituents on a possible alternative narrower scope. EFRAG also suggests that the IASB further articulates the link between MPMs and IFRS 8 Operating Segments.
19/06/2020