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EFRAG submitted to the IASB its comment letter on the ED of proposed amendments to IFRS 7 'Investments in Debt Instruments'
EFRAG does not believe the proposed disclosures are as urgently needed as the timetable implies.
The issues underlying the proposals are complex, EFRAG states. As a result, it is questionable whether it is possible to enhance comparability between investments in debt instruments held within a single entity and also by different entities through what is essentially a ‘patch’ of existing IFRS.
EFRAG is therefore not convinced that the stated objective of the proposals has been met and calls on the IASB to undertake further analysis.
Should the IASB decide to proceed with the amendments in one way or the other we recommend that they are not made mandatory for implementation in 2008 financial statements, EFRAG recommends. It could be problematic for some entities to gather and analyse the information necessary to implement the proposed new disclosures in 2008 financial statements. Furthermore, backdating an effective date is problematic for jurisdictions that require legal endorsement of any changes to IFRS before they can be applied.