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EFRAG issues final endorsement advice and effects study report on the amendments to IAS 36 and IAS 39

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

15 Jul 2013

The European Financial Reporting Advisory Group (EFRAG) has submitted to the European Commission its endorsement advice letter and effects study report on the amendments to IAS 36 regarding recoverable amount disclosures for non-financial assets and the amendments to IAS 39 regarding novations of derivatives.

In its first report, EFRAG supports the amendments to IAS 36, which correct an unintended consequence that would have resulted into a requirement to disclose financial information not relevant to users. The EFRAG’s assessment is that benefits for preparers and users implementing the amendments to IAS 36 outweigh the costs and is endorsing the amendments to the European Commission (EC).

In its second report, EFRAG supports the amendments to IAS 39, which remove the need to discontinue hedge accounting if a hedging derivative is novated, provided certain criteria are met. Again, the EFRAG’s assessment is that benefits for preparers and users implementing the amendments to IAS 39 outweigh the costs and is endorsing the amendments to the European Commission (EC).

As consequence of a request from the European Commission (EC) aimed at accelerating the endorsement process, EFRAG published draft endorsement advice on the amendments on 5 July 2013 and finalised the advice during the meeting of the Technical Experts Group (TEG) currently held in Brussels. The endorsement of the amendments regarding the novation of derivatives was seen as especially urgent.

Concurrently, EFRAG has updated its report showing the status of endorsement to reflects the final EFRAG endorsement advice of the amendments to IAS 36 and the amendments to IAS 39.

Click for the following information on the EFRAG website:

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