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EFRAG publishes its final comment letter on the IASB exposure draft ED/2019/6 disclosure of accounting policies

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

07 Jan 2020

EFRAG has published its Comment Letter in response to the IASB's Exposure Draft ED/2019/6 Disclosure of Accounting Policies (Proposed Amendments to IAS 1 and IFRS Practice Statement 2) (the ED).

  • EFRAG supports the proposal to replace the undefined reference to 'significance' with the defined concept of 'materiality'.
  • EFRAG suggests that the IASB further clarifies that, in applying the principle of materiality, an entity needs also to consider the accounting policies that are relevant to an understanding of its financial statements taken as a whole, consistently with Step 4 of the Materiality assessment process developed by the IASB.
  • EFRAG also notes the possible inconsistencies of the proposed guidance with the existing disclosure requirements in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors regarding accounting policies choices and changes.
  • Lastly, EFRAG welcomes the proposed guidance and examples to help entities determine when an accounting policy is material and suggests some improvements.

See the press release and the comment letter on EFRAG website.

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