07/11/2015 - EFRAG provides its preliminary views on the IASB Exposure Draft Conceptual Framework for Financial Reporting

EFRAG issued its Document for Public Consultation on the IASB Exposure Draft Conceptual Framework for Financial Reporting ('the ED') in July 2015. EFRAG has now formed preliminary views on the ED. These views are largely identical to the views expressed in the Document for Public Consultation. On the following two issues, the preliminary views are, however, slightly different from those expressed in the Document for Public Consultation.

Stewardship
In the Document for Public Consultation two possible amendments to the ED were foreseen for making the objective of assessing the management's stewardship as prominent as the objective of serving 'buy, hold or sell decisions'. The preliminary views of EFRAG only support one of these possibilities.

Users of general purpose financial reports
The preliminary views of EFRAG support the IASB proposals that financial reporting is intended to fulfil the needs of external users. The entity's management should accordingly not be considered users of general purpose financial reports. However, EFRAG considers that where preparers tend to converge and oppose to some IASB proposals because, in their view, the outcome would not be a meaningful depiction of the entities' financial position and/or performance, the IASB should, if it would confirm its preliminary decisions, explain how and why meaningful information will be provided.

The changes to the Document for Public Consultation resulting from the two issues above are shown in this document.

Constituents are invited to provide their comments on EFRAG's Document for Public consultation and on the two preliminary views explained above by 18 November 2015 (as has previously been announced).