Research paper by EFRAG, ANC and FRC on the role of the business model in financial statements

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

18 Dec, 2013

The European Financial Reporting Advisory Group (EFRAG), the French Autorité des Normes Comptables (ANC), and the UK Financial Reporting Council (FRC) have published a research paper on 'The Role of the Business Model in Financial Statements'. The paper is the result of one of the projects on EFRAG's proactive agenda

The paper leads through the chapters

    1. Background
    2. The business model in IFRS
    3. Assumed meaning and examples of business models
    4. The conceptual discussion and
    5. Implications of the business model for financial statements

to the conclusions that the business model should continue to play a role in financial reporting, that it is time for a change to the current ad-hoc use and that the concept of the business model should be included in the Conceptual Framework with appropriate guidance for standard-setting.

A Conceptual Framework bulletin on the role of the business model in financial reporting published in July 2013 also considered whether financial reporting based on the business model notion provides useful information.

The following information is available on the EFRAG website:

The research paper is open for comment until 31 May 2014.

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