EFRAG comment letter and feedback statement on the proposed amended IFRS Taxonomy due process
24 Feb, 2016
The European Financial Reporting Advisory Group (EFRAG) has issued its final comment letter on the IFRS Foundation's invitation to comment on proposed amendments to the due process for the development and maintenance of the IFRS Taxonomy, which would give the IASB greater involvement and responsibility. EFRAG has also issued the related feedback statement summarising the main comments received from constituents invited to respond to its draft comment letter.
In its comment letter on the November 2015 proposals, EFRAG acknowledges that it is important to continue to develop and maintain an IFRS Taxonomy in order to control the quality of the taxonomy and the use of the 'IFRS' brand name.
However, EFRAG is worried that the proposed amendments might give the IFRS Taxonomy too much prominence in the IASB's activities. It also comments that the IASB “should ensure that the IFRS Taxonomy does not drive the disclosure requirements in the standard-setting process and thereby risk moving away from a principles-based approach”.
EFRAG also warns against additional tasks for Board members as these could only come at the cost of spending less time on the tasks they already have.
Finally EFRAG “proposes the establishment of a specialised committee similar to the IFRS Interpretations Committee with specific rights and obligations” in order to provide “a robust due process and governance that gives legitimacy to the IFRS Taxonomy”.
The press release, comment letter and feedback statement are available on the EFRAG website.
