22/10/2015 - EFRAG's Comment Letter on the IASB's ED/2015/7 Effective Date of Amendments to IFRS 10 and IAS 28

On 10 August 2015, the IASB issued Exposure Draft Effective Date of Amendments to IFRS 10 and IAS 28 ("the ED"). In the ED the IASB proposes to defer indefinitely the effective date of the amendments to IFRS 10 and IAS 28, issued in September 2014, on Sale or Contribution of Assets between an Investor and its Associate or Joint Venture ("the 2014 Amendments").

The publication of the ED resulted from the IASB's decision in June 2015 that its ongoing research project Equity Method of Accounting should take over all the issues currently being considered by the Interpretations Committee on IAS 28 Investments in Associates and Joint Ventures, including the resolution of internal inconstancies that were identified by EFRAG on the 2014 Amendments.

In its comment letter, EFRAG supports the IASB's decision to defer ad hoc changes until the research on the Equity Method of Accounting is completed. However, EFRAG is opposed to early application remaining possible after the effective date of the 2014 Amendments has been postponed.

Further, EFRAG urges the IASB to progress the research project as a priority focusing on bringing solutions to the outstanding issues in a timely manner.