EFRAG commented on the operational efficiency of the IFRS Interpretations Committee
24 February 2011
EFRAG published its final comment letter on the request from the IFRS Foundation for comments on the operational efficiency of the IFRS Interpretations Committee.
In November 2010, the IFRS Foundation Trustees’ Due Process Oversight Committee issued a request for views to assess the operational effectiveness of the Interpretations Committee (the Committee – formerly known as IFRIC). The review is being conducted by means of a “confidential” questionnaire.
EFRAG believes that efforts have been made over the years to improve the operational effectiveness and transparent manner in which the Committee presently operates. However, EFRAG still has some concerns and therefore welcomes the opportunity to comment.
EFRAG´s main concern relates to the application of the Committee´s agenda criteria and the assessment of some of the requests it receives, particularly when the issues are complex. Furthermore, it is not always clear to us when an issue ought to be resolved through an amendment to an IFRS or an Interpretation.
EFRAG is also concerned with some of the wording for rejection notices used by the Committee in its publication of the ‘IFRIC Update’ to explain its tentative agenda decisions. In addition, EFRAG believes that a 30-day comment period for tentative agenda decisions does not always provide sufficient time to allow constituents to appropriately analyse the issues, respect their own due process and respond to the Committee on a timely manner.
Press release
© EFRAG - European Financial Reporting Advisory Group
