ARC okays endorsement of 5 IFRSs, defers on IFRIC 12
20 Jul 2008
The European Commission's Accounting Regulatory Committee (ARC) met on 11 July 2008. Here are meeting highlights: By formal votes, it agreed to recommend endorsement of the following pronouncements for use in the European Union: IAS 1 (revised 2007), IAS 23 (revised 2007), IFRS 2 (revised 2008), IFRIC 13, and IFRIC 14. EFRAG has also recommended that those pronouncements be adopted.
They will now continue through the next step in the adoption process – the European Parliament's Regulatory Procedure with Scrutiny Committee. IFRIC 14 is effective for calendar 2008 financial years, IFRIC 13 for years beginning 1 July 2008, and the others starting in 2009.
IFRIC 12, which is effective for annual periods beginning on or after 1 January 2008, was discussed, but discussions will continue at the ARC's October meeting.
The ARC discussed the equivalence of third country GAAPs and EU-endorsed IFRSs, IASB governance, and EFRAG enhancement, but no decisions or recommendations were made.
Draft proposals for reorganising EFRAG were agreed and will be issued as a consultation document in third quarter 2008.