From 8 to 10 June 2011, EFRAG held its monthly meeting. The first day of the meeting was held together with the European national standard setters in EFRAG's Consultative Forum of Standard Setters (CFSS). The following topics were discussed during the monthly meeting:

• IASB new and revised standards related to Consolidation project – IFRS 10 'Consolidation', IFRS 11 'Joint Arrangements', IFRS 12 'Disclosure of Interests in Other Entities', revised IAS 27 'Separate Financial Statements' and revised IAS 28 'Investments in Associates and Joint Ventures';

• IASB forthcoming Amendments to IAS 1 'Presentation of Items of Other Comprehensive Income';

• IASB forthcoming revised IAS 19 'Employee Benefits';

• European outreach on the IASB‟s projects on Revenue Recognition and Leases;

• IASB re-deliberations in the project Revenue from Contracts with Customers;

• IASB re-deliberations in the project Leases;

• IASB re-deliberations in the project Insurance Contracts;

• EFRAG Proactive project Business Combinations under Common Control;

• EFRAG Proactive project Disclosure Framework for the Notes to the Financial Statements;

• EFRAG Proactive project The Role of the Business Model in Financial Reporting;

• IFRS Foundation Report of the Trustees‟ Strategy Review;

• FEE Discussion Paper on Combined Financial Statements.

EFRAG considered the major changes introduced by IFRS12 in relation to the disclosure requirements. EFRAG noted that the disclosure requirements appeared voluminous at first; however, acknowledged that the main objective of the additional disclosures was to address concerns, by users of financial statements, about the lack of information on group structures and associated risks, including information about unconsolidated structured entities. EFRAG gave direction to the staff in relation to which issues to focus on. At its future meetings, EFRAG will proceed with its initial assessment of the full “package” of the new and revised standards related to Consolidation project against the technical criteria for the endorsement in the European Union.

EFRAG was pleased that, following its recommendation to IAS 1 'Presentation of Items of Other Comprehensive Income' (the Amendments), the IASB had decided to retain the option of presenting all non-owner's changes in equity in two statements. EFRAG did not raise any significant comments in relation to the Amendments. EFRAG will proceed with the initial assessment of the Amendments against the technical criteria for endorsement in the European Union, once the Amendments are finalised by the IASB.

EFRAG will proceed with the initial assessment of the revised IAS 19 against the technical criteria for endorsement in the European Union once it is finalised by the IASB.

EFRAG and CFSS members received an update on the feedback received from European constituents during the outreach, in relation to the IASB's re-deliberations of the proposals included in the Exposure Draft 'Revenue from Contract with Customers' (the ED), and considered recommendations to be made to the IASB.

Based on the feedback received during the outreach, EFRAG has decided to recommend the IASB to:

 

• consider revising the guidance in relation to the continuous recognition of revenue to address concerns that revenue could be recognised without an entity having an established right to receive consideration subject to continued performance;

• address outstanding concerns raised by some industries, including telecommunication and software companies;

• highlight in the feedback statement the improvements expected from the new single standard on revenue recognition;

• ensure sufficient and proper consultation period for the next document to be published.

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