EFRAG comments on IASB Request for Views on Effective Dates and Transition Methods
23 November 2010
EFRAG published its draft comment letter on the IASB Request for Views on Effective Dates and Transition Methods. Comments are invited by 21 January 2011.
In October 2010, the IASB issued the Request for Views on Effective Dates and Transition Methods. The Request for Views asks constituents’ views on the proposed transition methods and effective dates of the projects that the IASB is currently working on.
To maintain comparability between financial statements, EFRAG believes that the standards resulting from the projects on Revenue from Contracts with Customers, Leases, Insurance Contracts, Financial Instruments (IFRS 9) and Fair Value Measurement should have a single effective date of 1 January 2015 at the earliest.
Early adoption of the standards resulting from the projects on Post-employment benefits – Defined benefit plans, Presentation of items of Other Comprehensive Income, Consolidation and Joint Arrangements should be permitted. The effective dates of these standards could be considered on a case-by-case basis.
EFRAG notes that for some projects that are subject to the IASB‟s Request for Views, the deliberations have not been completed yet and that the corresponding transition methods have not been decided upon. In particular, we believe that in its deliberations the IASB should specifically consider the needs of those companies that want to adopt the final standard on financial instruments in its entirety rather than in phases.
EFRAG believes that different effective dates and permitting earlier adoption for first-time adopters might be considered for purely pragmatic reasons.
Full paper
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