The IASB uses the annual improvements project to make necessary, but non-urgent, amendments to IFRSs that will not be included as part of another major project.  The ED proposes amendments to IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, IFRS 7 Financial Instruments: Disclosures, IAS 19 Employee Benefits and IAS 34 Interim Financial Reporting. 

ESMA’s main comments are: 

• That the International Accounting Standards Board (IASB) should ensure that the notions ‘held for distribution to owners’ and ‘cost for distribution’ are added/amended to all relevant parts of IFRS 5 to avoid potential diversity in practice and to achieve consistent application of the standard.
• That in relation to the proposed amendment to IAS 19, ESMA would like clarification “on whether the IAS 19 requirements for regional markets sharing the same currency also apply in the case where a currency is pegged to another currency”.
• That in relation to the proposed amendment to IAS 34, although ESMA are “broadly supportive” they believe that it is important that the interim financial report remains readable and understandable as a whole and that it should be safeguarded “from a potential excessive use of cross-referencing”.
• That the amendments in respect of IFRS 5 should be applied retrospectively, consistent with the comments made by the European Financial Reporting Advisory Group (EFRAG). 

The full comment letter can be downloaded from ESMA’s website below. 

Click for: 

• Full comment letter (link to ESMA website).
• Our UK Accounting Plus project page on the Annual Improvements to IFRSs 2012–2014 Cycle.
• Our previous story on the Exposure Draft ED/2013/11 Annual Improvements to IFRSs 2012–2014 Cycle. 
• Deloitte's 'Need to know' newsletter on the Annual Improvements exposure draft.