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30/03/2015 - EFRAG publishes a feedback statement of the responses to the Discussion Paper 'Classification of Claims'.

EFRAG published today a feedback statement summarising the main messages from respondents to EFRAG's Discussion Paper which discusses the credit side of the balance sheet and the classification of the claims on an entity.

In July 2014, EFRAG published a Discussion Paper aimed at assisting the IASB in the development of its project on distinguishing between equity and liabilities and supporting European constituents in engaging with the discussion. The paper addresses wider questions than just the distinction between equity and liabilities, including how many elements the claims on an entity should be classified into, the objective of classification requirements and how dilution can be depicted.

EFRAG received eleven comment letters. Respondents to the Discussion Paper generally supported the identified framework but most respondents to and participants in the outreach meetings on the DP Classification of Claims considered that current binary classification model in IFRS should be retained, with a negative definition of equity and refinement of the positive definition of a liability.