Reply to the IASB’s surveys on Accounting Requirements for Intangibles by 30 November 2024

EFRAG urges European stakeholders to complete the IASB's surveys on intangibles accounting by 30 November 2024!

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The IASB has recently launched a survey for investors and another for companies and other stakeholders on the accounting requirements for reporting on intangibles in the financial statements.

Purpose of the Surveys

The surveys, which should take no more than 20 minutes to complete, will help the IASB to determine:

  • the problem that the IASB needs to solve;
  • the scope of the project; and
  • how the IASB should best stage the work to deliver timely improvements

Clarification on Different Categories of Intangibles

The surveys do not explicitly contemplate that different approaches may be considered to different categories of intangibles. Based on the received feedback for EFRAG's research on intangibles, the conclusion might differ depending on the type of intangibles. EFRAG encourages you if your response does not apply to all intangibles but to a certain category, to explain this in the comment box, where applicable.

EFRAG’s Work on Intangibles

As the topic is a key project for European constituents, EFRAG published in 2021 the Discussion Paper Better information on intangibles - which is the best way to go which analysed different approaches to obtain better information on intangibles. Based on the feedback received, in April 2023, EFRAG published the Recommendations and Feedback Statement where, among other recommendations, EFRAG tentatively recommended the IASB to:

  • Consider and clarify the scope of IAS 38;
  • Consider a combination of different approaches (recognition and measurement, information on future-oriented expenses and information on specific intangibles that are key to an entity) to obtain better information on intangibles;
  • Allow to recognise in the statement of financial position only those intangibles that meet the definition of an asset and certain recognition criteria;
  • Review the recognition criteria of IAS 38, including whether the rationales for prohibiting certain intangible assets being recognised still apply;
  • Consider providing an exemption to entities so they do not disclose information that is commercially sensitive.

Take the survey

The surveys are open until 30 November 2024. The survey results will be discussed at an IASB meeting in early 2025.

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