Annual Improvements to IFRS Accounting Standards - Volume 11
- Completed
- Endorsement consultation
- Monica Franceschini, Galina Borisova, Didrik Thrane-Nielsen, Kathrin Schoene
Description
In accordance with the IASB’s due process as described in the IFRS Foundation Due Process Handbook, proposed amendments to Accounting Standards that are sufficiently minor or narrow in scope can be packaged together and exposed in one document, even though the amendments are unrelated. Such amendments are called ‘annual improvements’. Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements of the Accounting Standards.
The following IFRS Accounting Standards and accompanying guidance would be affected by the proposed amendments:
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
Guidance on implementing IFRS 7 Financial Instruments: Disclosures
Introduction;
Disclosure of deferred difference between fair value and transaction price;
Credit risk disclosures
IFRS 9 Financial Instruments
Derecognition of lease liabilities;
Transaction price
IFRS 10 Consolidated Financial Statements - Determination of a ‘de facto agent’
IAS 7 Statement of Cash Flows - Cost method.
The IASB proposes to apply the amendments retrospectively with an earlier application permitted.
IASB Exposure Draft Consultation
In September 2023 the IASB published the Exposure Draft of proposed amendments to IFRS Accounting Standards as part of its annual improvements process with a deadline for comments of 11 December 2023.
EFRAG Draft Comment Letter
EFRAG published its Draft Comment Letter ("DCL") on 3 November 2023 with a comment period ended on 28 November 2023.
In its draft comment letter, EFRAG welcomed the package of the annual improvements included in the ED and agreed with the majority of the proposed amendments. In EFRAG's view, they would improve consistent application and understandability of the IFRS Accounting Standards.
However, EFRAG disagreed with the IASB's proposed amendment to IFRS 9 on derecognition of lease liabilities and recommended the IASB to clarify the interaction between IFRS 9 and IFRS 16 as part of a narrow-scope standard-setting project.
Regarding the proposed amendment to IFRS 10 on de facto agents, EFRAG recommended the IASB reconsider whether a look-up approach (i.e., including those that direct the activities of the investor) could ever be used for assessing if a party is a de facto agent for the purposes of the entity's consolidated financial statements.
EFRAG Final Comment Letter
Based on the feedback received from constituents in response to the DCL, EFRAG published its Final Comment Letter on 8 December 2023.
Endorsement Advice
In July 2024 the IASB published the amendments (here).
In August 2024 EFRAG received a request for an endorsement advice from the European Commission.
In October 2024 EFRAG issued a draft endorsement advice ('DEA').
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.
In December 2024 EFRAG issued its endorsement advice.
Documents
Project news
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11/12/2024 - EFRAG Endorsement of Annual Improvements to IFRS Accounting Standards—Volume 11
EFRAG completed its due process and submitted its Endorsement Advice to the European Commission.
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18/11/2024 - REMINDER: EFRAG seeks your input on its Draft Endorsement Advice on the Annual Improvements to IFRS Accounting Standards—Volume 11 by 22 November 2024
EFRAG is consulting on its assessment of the Annual Improvements to IFRS Accounting Standards—Volume 11 (‘the Amendments’) against the technical criteria for endorsement in the EU, and on its assessment on whether the Amendments are conducive to the European public good.
Comments are requested by 22 November 2024 COB.
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11/10/2024 - EFRAG Seeks Comments on Draft Endorsement Advice on Annual Improvements - Volume 11
EFRAG is seeking feedback on its assessment of the Annual Improvements to IFRS Accounting Standards—Volume 11 (‘the Amendments’) based on the EU's technical endorsement criteria and their alignment with the European public good.
Deadline for comments: 22 November 2024. Have a look at the draft endorsement advice letter here.
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07/12/2023 - EFRAG Final Comment Letter on the IASB's Exposure Draft Annual Improvements - Volume 11
EFRAG has published its Final Comment Letter in response to the in response to the IASB's Exposure Draft IASB/AI/ED/2023/1 Annual Improvements—Volume 11 ('the ED').
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23/11/2023 - Reminder – Please respond to the EFRAG Draft Comment Letter on the IASB's Exposure Draft Annual Improvements - Volume 11 by 28 November
Constituents have until 28 November 2023 to respond to the EFRAG Draft Comment Letter ('the DCL’) in response to the IASB's Exposure Draft IASB/AI/ED/2023/1 Annual Improvements—Volume 11 ('the ED').
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03/11/2023 - EFRAG Draft Comment Letter on the IASB's Exposure Draft Annual Improvements - Volume 11
EFRAG has published its Draft Comment Letter in response to the IASB's Exposure Draft IASB/AI/ED/2023/1 Annual Improvements—Volume 11 ('the ED'). Comments can be submitted until 28 November 2023.
