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EFRAG issued an invitation to comment on the revised IAS 1 - Presentation of Financial Statements and IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. The primary purpose is to request comments on EFRAG’s initial assessment of the costs and benefits involved.
The revised IAS 1 will:
● involve preparers incurring some year one costs - in order to read, understand and implement the new requirements - but that those costs will be insignificant;
● not involve preparers incurring significant incremental ongoing costs; and
● involve users incurring only insignificant incremental year one or ongoing costs.
IFRIC 14 will:
● involve preparers incurring some year one costs - in order to read, understand and implement the new requirements - but that those costs will not be significant;
● not involve preparers incurring significant incremental ongoing costs; and
● not involve users incurring any incremental year one or ongoing costs.
EFRAG has also been assessing IAS 1 (Revised) and IFRIC 14 against the criteria for endorsement set out in Regulation (EC) No 1606/2002. EFRAG’s near-final conclusion is that neither IAS 1 (Revised) nor IFRIC 14 is contrary to the true and fair principle and that both meet the criteria of understandability, relevance, reliability and comparability
Deadline for comments is
IAS 1 Revised and IFRIC 14 Effects Studies consultation (zip file)