EFRAG Updates its Report on Endorsement Status
The EFRAG has recently updated its reports indicating the endorsement status, as per the European Union Accounting Regulation, of each every International Financial Reporting Standards, consisting of interpretations, amendments and standards. The report that has been updated shows that the ARC (Accounting Regulatory Committee) is willing to adopt the amendments to International Financial Reporting Standards 1 -Government Loans.
In the month of March 2012, the International Accounting Standards Board had issued amendments to IFRS 1. This particular amendment addressed the manner in which the entity that was adopting the standard for the first time would be accounting for a government sanctioned loan (with an interest rate which was below the prevailing market rate) at the time of shifting to International Financial Reporting Standards.
The amendment also made an exception to the retrospective application of the International Financial Reporting Standards that offers similar relief to the first time adopters of the IFRS. Organizations are expected to adopt the amendments for annual sessions starting after or on 1st of January 2013. In fact, entities can also apply them early, if required.
The European Financial Reporting Advisory Group’s report that has been updated consist of endorsement related letters that contain advice on disclosure and joint arrangements of interests in other organizations: transition related guidance (consisting of amendments made to IFRS 10, 11 and 12) and consolidated statements. The letter also contains advice on the improvements made to IFRSs 2009-11cycle on the 29th of August 2011.
The EFRAG was set up in the month of June in the year 2011. The EFRAG was established by a number of entities that represented the profession of accounting in Europe including users, national principle/standard setters and users. The primary aim of the European Financial Reporting Advisory Group is to offer technical advice to the EU on matters related to the utilization of International Accounting Standards within Europe. The board was also set up with an intention to participate in the International Accounting Standard Boards standard creation procedure and to cooperate as well as coordinate with the European Union in developing of the views that are related to IAS.