22-5-2008 | EFRAG requests comments on its initial technical assessment of the Improvements to IFRSs and on its initial assessment of the costs and benefits that would arise from its application in the EU

EFRAG is today issuing an Invitation to Comment relating to the endorsement for use in the EU of the Improvements to IFRSs (Amendments). It is consulting both on its assessment of the Amendments against the EU endorsement criteria and on its initial assessment of the costs and benefits that would arise from its application in the EU. Comments are requested by 23 June 2008.
	EFRAG had not previously carried out and consulted on its initial assessment of the Amendments against the technical criteria for endorsement in the EU set out in the Regulation. As a result, EFRAG is inviting comments on all aspects of its initial technical assessment, the tentative conclusion of which is that the Amendments meet the endorsement criteria and that EFRAG should recommend its endorsement for use in the EU. EFRAG has also carried out an initial assessment of the costs and benefits expected to arise from the implementation of the Improvements to IFRSs in the EU and has tentatively concluded that: The Amendments are likely to involve some preparers in some additional year one and ongoing costs. Taken individually those costs will, EFRAG believes, generally be insignificant (although for a few companies the costs could be more significant); indeed, some entities will already be applying some IFRSs in a way that is identical or very similar to that required by the amendments and for those entities it is likely that there will be little if any incremental cost involved in implementing those particular amendments. As a result, EFRAG’s assessment is that when considered in aggregate, those costs will still not be significant. The Amendments are likely to involve users in no year one or ongoing incremental costs. The Amendments are likely to result in improvements in the quality of the information provided. Taken individually, most of these improvements are likely to be relatively small; however, EFRAG believes that a handful of the amendments will have a noticeable effect on the quality of the information provided. EFRAG’s initial assessment is that these benefits are likely to outweigh the costs involved. EFRAG is inviting comments on all aspects of this initial assessment by no later than 23 June 2008. The complete Invitation to Comment can be downloaded here as single PDF document. However, constituents are encouraged to use the attached Word document of the questionnaire from the Invitation to respond electronically.
Document : ItC Effect Study Proposed Improvements to IFRS (22.05.08).zip
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