EFRAG seeks to extend business combinations deadline
01 Oct 2005
The European Financial Reporting Advisory Group (EFRAG) has written to the IASB asking that the IASB extend "probably by two months" the comment period for the Exposure Drafts of proposed amendments to IFRS 3 'Business Combinations' and related amendments to IAS 19, IAS 27 and IAS 37.
An extract from the letter follows:
The exposure drafts contain a number of proposals that will have a fundamental effect on the financial statements and/or have potentially widespread implications for other aspects of accounting. For that reason it is vitally important that the IASB's constituents study the proposals carefully before responding to them....
The nature of the drafts themselves compounds this problem because it is often not clear from the text why a particular proposal had been made. For example, faced with radical proposals for change it is reasonable to start by asking what is wrong with what we have now and how will the changes proposed benefit users of the financial statements. However, in the main the Basis for Conclusions as drafted does not help in answering those questions. This makes it more difficult to evaluate the proposals.
Click to download EFRAG's Letter to the IASB (PDF 24k).