EFRAG Issues Advice Letters to European Commission
The EFRAG has served letters containing advice as well as reports based on the studies conducted by it on Annual improvements to IFRSs 2009-2011 Cycle as well as Consolidated Financial Statements, Joint Arrangements and Disclosures of Interests in Other Entities: Transition Guidance’ (Amendments to IFRS 10, 11 and 12) to European Commission.
As far as its evaluation of Annual Improvements to IFRSs 2009-2011 Cycle is concerned, the EFRAG has supported the amendments that were made to it and has further recommended that it should be adopted. The European Financial Reporting Advisory Group also pointed out that the advantages associated with adoption of the amendments makes up for the costs.
In their endorsement letter that also carried advice from the Group, the EFRAG mentioned that it is supportive of Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12) for endorsement.
The EFRAG also recommended that the compulsory date on which the IFRS 10, IFRS 11, IFRS 12 and International Accounting Standard 7 (2011) as well as International Accounting Standard 28 (2011) will become effective should be deferred from 1st of January in 2013 to 1st of January in 2014. The Group also mentioned that adoption of the accounting standards should also be permitted earlier than that.
On the 17th of May in 2012, the International Accounting Standards Board had released amendment to the Annual Improvements to IFRSs 2009–2011 Cycle. The IASB had provided a number of amendments to International Financial Reporting Standards in its response to the 6 issues that were discussed during the 2009-11 cycle.
These amendments are basically a reflection of the matters that were addressed by the International Accounting Standards Board at the time of the project cycle, which started in the year 2009, and further were issued in the month of June 2011 as Exposure Draft ED/2011/2 Improvements to IFRSs.
The EFRAG has issued the letter so that it can be used in European Economic Area as well as European Union. According to the EFRAG the amendments easily meets the technical needs of the endorsement.