EFRAG Seeks Comments on Draft Endorsement Advice on Annual Improvements - Volume 11
EFRAG has issued a draft endorsement advice letter and a separate invitation to comment on to the endorsement for use in the EU of the Amendments, issued by the IASB on 18 July 2024.
The objective of the Amendments is to provide limited changes that either clarify the wording in the amended IFRS Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements of the IFRS Accounting Standards. The draft endorsement advice refers to the amendments to the following IFRS Accounting Standards:
IFRS 1 First-time Adoption of International Financial Reporting Standards - Hedge accounting by a first-time adopter;
IFRS 7 Financial Instruments: Disclosures - gain or loss on derecognition;
IFRS 9 Financial Instruments - Derecognition of lease liabilities and transaction price;
IFRS 10 Consolidated Financial Statements - determination of a ‘de facto agent’; and
IAS 7 Statement of Cash Flows - cost method.
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 analysis supporting the preliminary conclusions, including whether and to which extent the amendment to IFRS 9 related to the derecognition of lease liabilities would impair the European public good.
You are asked to provide your comments on the draft endorsement advice letter by downloading the invitation to comment, filling in the comments and submitting the response by clicking on the 'Submit your comment letter here' link below.
Comments are requested by 22 November 2024 COB.
EFRAG has also updated its Endorsement Status Report.