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CESR suggests that in order to develop a new unique principle more time is needed and calls on the IASB to issue a new discussion paper.
CESR notes that paragraph S11 implies that the IASB is seriously considering scope exemptions for financial instruments (and even non-financial instruments contracts), insurance contracts, and leasing contracts.
Also, many of the issues brought to IFRIC’s attention are not addressed in the current project. CESR is concerned that the scope of the current project seems only to address a limited number of the application issues, mainly eliminating the choice between IAS 11 and IAS 18, and providing new guidance on some multiple-element transactions.
Finally, owing to a lack of detail in the definitions of key elements such as control and revenue, CESR believes that that the current proposal is not refined enough to ensure its consistent application in areas such as long-term contracts