EFRAG requests an extension of the comment period on the Exposure Draft Provisions -Targeted Improvements
On 12 November 2024, the IASB issued the ED proposing targeted amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets. The amendments aim to clarify when an entity has a present obligation and propose some changes to the measurement of provisions.
EFRAG acknowledges that the proposed amendments are not intended to fundamentally change IAS 37. However, after having made an initial assessment of the proposals EFRAG considers that further analysis is needed to better assess whether the proposals are sufficiently clear and will not result in any unintended consequences. In this regard, EFRAG notes that the amendments do not seem urgent, and it is currently ‘busy season’ for the accounting profession in Europe. This means that it will be difficult for EFRAG (and national standard setters in EU member states) to collect sufficient information related to the proposals and their effects.
For these reasons, EFRAG believes that the comment period should be extended by 60 days in order to facilitate participation in outreach activities for all stakeholders for the benefit of any resulting amendments.