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EFRAG issues draft endorsement advice and effects study report on the Annual Improvements to IFRSs 2010 – 2012 and 2011 – 2013 cycles.

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

31 Jan 2014

The European Financial Reporting Advisory Group (EFRAG) has issued for comment its draft endorsement advice for the use of the Annual Improvements to International Financial Reporting Standards (IFRSs) 2010 – 2012 Cycle and Annual Improvements to IFRSs 2011 – 2013 Cycle in the European Union (EU). EFRAG has also issued their Effects Study Report for both.

The Annual Improvements to IFRSs 2010-2012 Cycle incorporate eight amendments to seven standards being IFRS 2 Share-based Payment, IFRS 3 Business Combinations, IFRS 8 Operating Segments, IFRS 13 Fair Value Measurement, IAS 16 Property, Plant and Equipment, IAS 24 Related Party Disclosures and IAS 38 Intangible Assets. 

The Annual Improvements to IFRSs 2011-2013 Cycle incorporate four amendments to four standards being IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 3 Business Combinations, IFRS 13 Fair Value Measurement and IAS 40 Investment Property

The majority of the amendments are in the nature of clarifications rather than substantive changes to existing requirements. 

EFRAG supports the adoption of the Annual improvements for both cycles and recommends their endorsement.  EFRAG’s initial assessment is that the Annual Improvements for both cycles meet the technical requirements of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council on the application of international accounting standards.     

EFRAG’s conclusion is supported by an Effects Study Report which considers the costs and benefits of implementing the Annual Improvements. EFRAG’s assessment is that the benefits for preparers and users in implementing the Annual Improvements for both cycles outweigh the costs.

Comments are requested by 3 March 2014. 

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