|
|
EFRAG has issued an Invitation to Comment relating to the endorsement for use in the EU of Amendments to IFRIC 14 Prepayments of a Minimum Funding Requirement. It is consulting both on its assessment of the amendments against the EU endorsement criteria and on its initial assessment of the costs and benefits that would arise from its application in the EU.
An unintended consequence of IFRIC 14 was identified when an entity subject to a minimum funding requirement made an early payment of contributions. Under certain circumstances, the entity making such a prepayment of a minimum funding requirement would be required to recognise an expense. Amendments to IFRIC 14 Prepayments of a Minimum Funding Requirement eliminates this unintended consequence and treats this prepayment, like any other prepayment, as an asset (because making such a prepayment should reduce the amount of minimum funding requirement contributions that would otherwise need to be made in the future).
Deadline for comments are requested by