EFRAG final comment letter on the IASB’s exposure draft proposing to defer the effective date of amendments to IFRS 10 and IAS 28

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

26 Oct 2015

The European Financial Reporting Advisory Group (EFRAG) has published its final comment letter on the International Accounting Standards Board’s (IASB’s) exposure draft ED/2015/7 'Effective Date of Amendments to IFRS 10 and IAS 28'.

In August 2015, the IASB published ED/1015/7 with proposed amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures. The amendments aim at deferring the effective date of the September 2014 amendments to these standards indefinitely until the research project on the equity method has been concluded.
 
In its final comment letter, EFRAG agrees with the proposed amendments as EFRAG believes that this deferral will give the IASB the opportunity to address the application problems arising from the equity method requirements comprehensively, will give the IASB the opportunity to reconsider subsequently identified issues and challenges, and will reduce the risk of requiring successive rounds of changes to IAS 28 in a short period of time.

EFRAG, however, does not agree to early application remaining possible after the effective date of the 2014 amendments has been postponed.

The press release and full comment letter are available on the EFRAG website.

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