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The ED proposes to amend IAS 8 to lower the threshold for relief from retrospective application of such changes by allowing an assessment based on costs to the entity and expected benefits to users. Applying the amendment, an entity would be required to apply voluntary changes in accounting policies resulting from agenda decisions either:
In its draft comment letter, EFRAG does not support the proposals in the ED insofar as EFRAG disagrees with introducing a distinction between voluntary changes in accounting policies resulting from agenda decisions and other voluntary changes. EFRAG considers that the proposals in the ED raise broader questions about the status and the objectives of agenda decisions.
EFRAG also considers that the proposals in the ED may give rise to practical challenges if finalised in their current form and that further guidance will be needed to:
Lastly, EFRAG reiterates its suggestions to the IASB to reconsider whether some additional clarification on the distinction between a change in accounting policy and correction of an error would be useful in finalising the amendments contained in this ED and in the one issued in September 2017.
Comments no later than: 13/07/2018