In May 2008 the IASB issued the discussion paper Preliminary Views on an improved Conceptual Framework for Financial Reporting – The Reporting Entity (DP). EFRAG issued its comment letter on the DP on 22 October 2008.
In March 2010, the IASB issued its exposure draft (ED) on Phase D of the Conceptual Framework project. Key points are:
1) Descrption of a reporting entity
2) Control and consolidated financial statements
3) Relation with standards on consolidation
4) Other: parent-only financial statements, combined financial statements, proportionate consolidation
On 15 July 2010, EFRAG issued its final comment letter. EFRAG agreed with the proposed description of reporting entity and supported that 'control' should be defined in the Conceptual Framework but believed that this definition should not be developed in the chapter dealing with the Reporting Entity. EFRAG agreed that completion of the Reporting Entity chapter of the Conceptual Framework should not be delayed until the completion of the standards dealing with consolidation and considered that the perspective from which financial statements are presented as critical and should be discussed in the Conceptual Framework.
In November 2010, IASB and FASB discussed some of the issues raised in comment letters on the Exposure Draft, and concluded that significant time will be required to satisfactorily address those issues. Because of the priority placed on other projects, the Boards concluded that they cannot devote the time necessary to properly address those issues in the near future.