EFRAG proposes not to endorse IFRIC 3

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

23 Feb 2005

The Technical Expert Group of the European Financial Reporting Advisory Group (EFRAG) has invited comments on its draft letter to the European Commission recommending that the Commission not adopt IFRIC 3 'Emission Rights' for use in Europe.

The letter states the following:

"EFRAG has concerns about the overall effect of the accounting requirements in IFRIC 3, particularly in circumstances where entities have not acquired or sold allowances.

EFRAG believes that applying IFRIC 3 will not always result in economic reality being reflected and relevant information being provided.... EFRAG has concluded that the disadvantages that would arise from endorsing an interpretation constrained by the interplay of the current IFRSs/IASs are not outweighed by the advantages that would be gained by having guidance on the accounting on the emission right schemes."

Click to Download the Draft Letter on IFRIC 3. Comments are due 22 March 2005.


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