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In December 2011, the IASB issued the Exposure Draft 'Transition Guidance (Proposed amendments to IFRS 10)'. The objective of the proposed amendments is to clarify the transition guidance in IFRS 10 by confirming when an entity needs to apply IFRS 10 retrospectively.
EFRAG's letter is intended to contribute to the IASB’s due process and does not necessarily indicate the conclusions that would be reached by EFRAG in its capacity as advisor to the European Commission on endorsement of definitive IFRS in the European Union and European Economic Area.
EFRAG welcomes the IASB’s decision to clarify the transition guidance in IFRS 10. In addition, EFRAG also supports the Board’s decision to address this issue separately rather than through an annual improvement.
EFRAG supports the proposed amendments as they provide greater clarity and ensure consistent application of the transition requirements of IFRS 10. EFRAG agrees with the amendments as they provide an appropriate trade-off between the costs to preparers and benefits to users.