Amendments to References to the Conceptual Framework in IFRS Standards

Objective

The aim of this project is to update, in existing Standards, references to, and quotes from, the existing version of the Conceptual Framework or the version that was replaced in 2010 so that they refer to the revised Conceptual Framework.

Project History

On 28 May 2015 the IASB published for public comment the Exposure Draft ED/2015/4 Updating References to the Conceptual Framework (Proposed amendments to IFRS 2, IFRS 3, IFRS 4, IFRS 6, IAS 1, IAS 8, IAS 34, SIC-27 and SIC-32) at the same time as the Exposure Draft ED/2015/3 Conceptual Framework for Financial Reporting.

The purpose of this Exposure Draft was to update the references to, and quotes from, the existing version of the Conceptual Framework or the version that was replaced in 2010. In addition, the IASB proposes to remove a number of footnotes that refer to changes made to the Conceptual Framework in 2010.

On 10 August 2015, EFRAG published a draft comment letter with its preliminary response to the IASB Exposure Draft.

On 23 December 2015 EFRAG published its comment letter. In its comment letter in response to the proposals on how to update references to the Conceptual Framework, EFRAG expressed its concerns about possible unintended effects resulting from the proposed amendments – other than amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors - and considers that the amendments should remain editorial in nature and therefore not require any transition provision. EFRAG further questioned the feasibility and the enforceability of the amendment to IAS 8 as many different factors may have influenced the design of accounting policies, i.e. analogy to existing IFRS or other GAAP, and the exclusive link to the Conceptual Framework may be difficult to establish. It therefore recommended that the IASB perform an effects analysis before making any changes as a result of the revised Conceptual Framework. Furthermore, EFRAG could not support retrospective application without the possibility of assessing the practicality of the requirement.

On 29 March 2018, the IASB issued Amendments to References to the Conceptual Framework in IFRS Standards ('the Amendments').

On 6 July 2018, EFRAG published its draft endorsement advice on the Amendments in which EFRAG recommeded endorsement. EFRAG requested comments on its draft assessment by 14 September 2018.

On 12 October 2018 EFRAG submitted its endorsement advice to the European Commission. EFRAG recommended endorsement.

On 6 December 2019 the endorsement was published in the Official Journal of the European Union.