EFRAG requests comments on its draft endorsement advice on Disclosure of Accounting Policies

​​​EFRAG is ​​consulting on both its assessment of Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) (‘the Amendments’) against the technical criteria in the EU and on its assessment of whether the Amendments are conducive to the European public good. Comments are requested by 7 June 2021.

​​​EFRAG has issued a draft endorsement advice letter and separate invitations to comment relating to the endorsement for use in the EU of the Amendments.

The objective of the Amendments is to ​develop​ guidance and examples to help entities apply materiality judgments to accounting policy disclosures. To support this Amendments, the IASB also amended IFRS Practice Statement 2 Making Materiality Judgements​ to explain the application of the materiality concept to accounting policy disclosures. EFRAG's endorsement advice, in line with the letter requesting advice received from the European Commission, only addresses the changes to IAS 1 as the Practice Statement has not been endorsed for application in the European Union.
The Amendments become effective for annual periods beginning on or after 1 January 2023, with earlier application permitted.
EFRAG's overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore recommends its endorsement. EFRAG is seeking comments on all aspects of its analyses supporting its preliminary conclusions.
EFRAG's draft endorsement advice letter is available here​.

You are asked to provide your comments on the draft endorsement advice letter by downloading the invitation to comment here filling in the comments, and submitting the response by clicking on the ‘Comment publication’ link below​
​Comments are requested by 7 June 2021. ​​​

For your information, EFRAG has also updated its Endorsement Status Report, which is available on EFRAG's website​.

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