28-7-2009 | EFRAG requests comments on its initial technical assessment of the Improvements to IFRS 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 4 September 2009.
	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 some or all of the individual 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 be insignificant. 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 therefore that the benefits arising from the implementation of the Amendments in the EU are likely to outweigh the costs involved. EFRAG is inviting comments on all aspects of this initial assessment by no later than 4 September 2009. The complete Invitation to Comment can be downloaded here and constituents are encouraged to respond electronically by using the questionnaire in word document format from the Invitation to comment.
Document : EFRAGs Invitation to Comment on Annual Improvements standard dated April 2009.doc
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