This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

EFRAG Outreach on Financial Statement Presentation – feedback report

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

16 Feb 2011

Between September and December 2010, the European Financial Reporting Advisory Group (EFRAG) and the European National Standard Setters jointly organised meetings in ten European cities to assist the IASB in gathering the views of European constituents on the tentative decisions included in the IASB staff draft of the Exposure Draft Financial Statement Presentation.

Overall, 484 constituents participated in these meetings. European constituents were also invited to provide their feedback on the Draft ED using an online questionnaire. Overall, 133 constituents completed the questionnaire, including 24 constituents who did not participate in the meetings.

EFRAG has now issued a feedback report summarising the views expressed by European constituents. Some of the results were the following (quotes from the report's executive summary):

"The European constituents in all locations consistently questioned whether a new presentation model was really needed, especially considering the costs involved. [...] The European constituents in several locations mentioned that their preliminary assessment of costs to implement certain aspects of the proposals and the costs to maintain the new presentation model would be comparable to the effort associated with the initial adoption of IFRSs in Europe."

"European constituents in all locations consistently expressed a very strong view that, prior to proceeding with the presentation matters, the IASB should address the fundamental issues related to performance reporting, namely, what constitutes performance and what is the impact of the business model on it; where and how should the line be drawn between profit and other comprehensive income (OCI), and whether reclassification of OCI items (recycling) is needed."

"The European constituents were generally split in views as to whether or not the IASB should develop one generic presentation model for all industries or consider developing industry-specific models."

"The European constituents generally believed that the proposals in the Draft ED would result in too much detail on the face of primary statements. This would obscure key messages and would complicate rather than improve the communication between an entity and its stakeholders."

"The majority of European constituents participating in the outreach meetings were against mandating the direct method for presenting operating cash flows."

Please click for EFRAG press release (link to EFRAG website) and the full report (PDF 732k).

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.