|
|
The focus of the IASB’s work on derecognition should be to address the crisis-related issues arising from the existing derecognition model. Improving disclosure requirements should be the priority for now, EFRAG argues.
EFRAG has significant reservations about the proposals for a new derecognition model. EFRAG notes that while that approach has conceptual merits, it goes far beyond the crisis-related issues and incremental changes needed. EFRAG is therefore strongly against the Alternative Approach being implemented at this time.
EFRAG points out that a more comprehensive piece of work on derecognition needs to be done that would need to address at a conceptual level such issues as the asset definition, the unit of account, the role of risks and rewards and the purpose of the balance sheet employing a comprehensive debate and field testing.
Deadline for comments is
The document can be downloaded below.