23 October 2015

EFRAG: Comment letter on the IASB's ED/2015/7 Effective Date of Amendments to IFRS 10 and IAS 28

EFRAG has issued its final comment letter on the IASB's ED/2015/7 Effective Date of Amendments to IFRS 10 and IAS 28. EFRAG urges the IASB to progress the research project as a priority focusing on bringing solutions to the outstanding issues in a timely manner.

On 10 August 2015, the IASB issued Exposure Draft Effective Date of Amendments to IFRS 10 and IAS 28 (“the ED”). In the ED the IASB proposes to defer indefinitely the effective date of the amendments to IFRS 10 and IAS 28, issued in September 2014, on Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (“the 2014 Amendments”).

EFRAG agrees with the IASB’s proposal to defer the effective date of the 2014 amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture indefinitely.

EFRAG considers that the IASB’s proposal will give the IASB the opportunity to address the application problems arising from the equity method requirements set out in IAS 28 Investments in Associates and Joint Ventures in a comprehensive way and in a single project. It would also give the IASB the opportunity to reconsider the issues and challenges identified by EFRAG. EFRAG also considers that deferring the effective date of the 2014 Amendments indefinitely would also reduce the risk of requiring successive rounds of changes to IAS 28 in a short period of time.

EFRAG therefore supports the IASB’s decision to defer ad hoc changes to IAS 28 Investments in Associates and Joint Ventures until the Equity Method of Accounting project is completed.

However, EFRAG is opposed to early application remaining possible after the standard postponing the effective date of the amendments has been issued. 

Full press release

Full comment letter

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