EFRAG published its final comment letter to the IASB on its ED 'Recoverable Amount Disclosures for Non-Financial Assets (Proposed Amendments to IAS 36)'.
The IASB intends to amend the disclosure requirements in IAS 36 Impairment of Assets with regard to the measurement of the recoverable amount of impaired assets that were made as a consequence of issuing IFRS 13 Fair Value Measurement in May 2011.
The IASB acknowledged that some of the amendments made to IAS 36 had the effect of applying requirements more broadly than the IASB intended. In particular, instead of requiring the disclosure of the recoverable amount of an asset (including goodwill) or a cash generating unit with material impairment losses or impairment reversals during the period, one of the amendments made to IAS 36 required an entity to disclose the recoverable amount of each cash-generating unit for which the carrying amount of goodwill or intangible assets with indefinite useful lives allocated to that unit is significant in comparison with the entity’s total carrying amount of goodwill or intangible assets with indefinite useful lives.
In its final comment letter, EFRAG agrees with the proposal as it removes burdensome and unintended disclosures requirements without reducing the relevance and understandability of the financial information.
Press release
Comment letter
© EFRAG - European Financial Reporting Advisory Group
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