EFRAG supports deferral of IFRS 10/IAS 28 amendments, recommends postponing the endorsement process

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09 Sep 2015

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on IASB exposure draft ED/2015/7 'Effective Date of Amendments to IFRS 10 and IAS 28'. It has also recommended to the European Commission to further postpone the endorsement process on these amendments.

In August 2015, the IASB published ED/1015/7 with proposed amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures. The amendments aim at deferring the effective date of the September 2014 amendments to these standards indefinitely until the research project on the equity method has been concluded.

In its draft comment letter, EFRAG supports the proposed amendments as EFRAG believes that this deferral will give the IASB the opportunity to address the application problems arising from the equity method requirements comprehensively, will give the IASB the opportunity to reconsider subsequently identified issues and challenges, and will  reduce the risk of requiring successive rounds of changes to IAS 28 in a short period of time.

EFRAG has also written to the European Commission to further postpone the endorsement of the September 2014 amendments. The endorsement process on these amendments is currently on hold following a February 2015 recommendation by EFRAG.

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