EFRAG submits to the European Commission its Endorsement Advice on IFRS 18 - Presentation and Disclosure in Financial Statements
Responding to the request from the European Commission, EFRAG has submitted its endorsement advice on IFRS 18 Presentation and Disclosure in Financial Statements.
IFRS 18 aims to enhance the usefulness of information presented and disclosed in the financial statements, addressing stakeholder feedback, especially from users requesting better information about companies’ financial performance. IFRS 18 impacts the presentation of financial information of each entity. It aims to improve the way companies communicate information in their financial statements, providing investors with a better basis for analysing and comparing companies’ performance.
In its endorsement advice, EFRAG concluded that IFRS 18 meets the technical criteria for endorsement, is not contrary to the principle of true and fair view and that its adoption would be conducive to the European public good. EFRAG therefore recommends its endorsement.
In reaching this conclusion, EFRAG considered feedback from various stakeholders (including users and preparers of financial statements) received during the endorsement advice consultation period and provided throughout the consultation and redeliberation phase of the IFRS standard.
EFRAG's full recommendation can be found in the letter to the European Commission and the accompanying appendices:
Appendix 1: Understanding the changes brought about by IFRS 18
Appendix 2: EFRAG’s technical assessment of IFRS 18 against the endorsement criteria
Appendix 3: Assessing whether IFRS 18 is conducive to the European public good
EFRAG has also updated its Endorsement Status Report to reflect the submission of this Endorsement Advice.