EFRAG comments on IASB ED/2017/1 improvements to IFRS Standards 2015-2017 Cycle
Released 19 April 2017
The European Financial Reporting Advisory Group (EFRAG) has published its comment letter and feedback statement in response to the International Accounting Standards Board’s (IASB) Exposure Draft ED/2017/1 Annual Improvements to IFRS Standards 2015-2017 Cycle, which was issued in January 2017.
The IASB proposed amendments on IAS 12 Income Taxes, IAS 23 Borrowing Costs and IAS 28 Investments in Associates and Joint Ventures. The EFRAG is in broad agreement with most of the proposed amendments, but is concerned that amending IAS 12 without providing guidance on how to determine whether the payments are distributions of profits may not lead to a significant improvement in consistent application compared to the current situation.
The EFRAG supports the IASB's decision to address issues with IAS 28 before IFRS 9 becomes effective, considering the proposed amendments to be a practical solution, in that they codify an acceptable interpretation of existing guidance and do not involve extensive changes to that guidance. The EFRAG also understands the benefits from aligning the effective date of the amendments to IAS 28 with the effective date of IFRS 9, but is concerned about the short time period between the expected date of issuing the amendments and the proposed effective date of 1 January 2018, which it considers will create difficulties for all jurisdictions with a translation or endorsement process, including the EU.
More details are available here.