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EFRAG issues feedback statement on IASB's expected credit losses ED

  • EFRAG (European Financial Reporting Advisory Group) (dk green) Image

19 Jul 2013

The European Financial Reporting Advisory Group (EFRAG) has published a feedback statement summarising the main comments received from constituents invited to respond to their draft comment letter in relation to the International Accounting Standards Board (IASB) draft ED/2013/3.

In March 2013 the IASB published Exposure Draft ED/2013/3 Financial Instruments: Expected Credit Losses.  In the Exposure Draft the IASB proposes a model according to which credit losses are no longer recognised if incurred; rather, entities would recognise expected credit losses on financial assets and on commitments to extend credit based upon current estimates of expected shortfalls in contractual cash flows as at the reporting date.

EFRAG published their draft comment letter in April 2013 and the final comment letter was published in July 2013. 

The feedback statement provides an analysis of the EFRAG tentative position expressed in the draft comment letter, describes the comments received from constituents and then highlight how these comments were considered by the EFRAG Technical Group (EFRAG TEG) in reaching their final position on the IASB ED set out in their final comment letter to the International Accounting Standards Board (IASB).  The feedback statement also provides an overview of the results of the field test, conducted in April 2013, on the ED conducted by EFRAG together with the National Standard Setters of France, Germany, UK and Italy.

Click for:

EFRAG press release (link to EFRAG website)

Feedback statement in full (link to EFRAG website)

Click here for our story on the results of the EFRAG field test 

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