29 August 2012

EFRAG's report on Annual Improvements to IFRSs 2009–2011 Cycle

On 17 May 2012, the IASB issued Annual Improvements to IFRSs 2009–2011 Cycle (the Amendments), a collection of amendments to IFRSs, in response to six issues addressed during the 2009-2011 cycle. The Amendments reflect issues discussed by the IASB during the project cycle that began in 2009, and that were published in June 2011 as Exposure Draft ED/2011/2 Improvements to IFRSs. The amendments are effective for annual periods beginning on or after 1 January 2013, although entities are permitted to apply them earlier.

EFRAG has carried out an evaluation of the Amendments. As part of that process, EFRAG issued its initial assessment for public comment and, when finalising its advice and the content of this letter, it took the comments received in response into account.

EFRAG’s evaluation is based on input from standard-setters, market participants and other interested parties, and its discussions of technical matters are open to the public.

EFRAG supports the Amendments and has concluded that they meet the requirements of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council on the application of international accounting standards in that they:

• are not contrary to the principle of ‘true and fair view’ set out in Article 16(3) of Council Directive 83/349/EEC and Article 2(3) of Council Directive 78/660/EEC; and
• meet the criteria of understandability, relevance, reliability and comparability required of the financial information needed for making economic decisions and assessing the stewardship of management.

For the reasons given above, EFRAG is not aware of any reason to believe that it is not conducive to the European public good to adopt the Amendments and, accordingly, EFRAG recommends their adoption.

Press release

© EFRAG - European Financial Reporting Advisory Group