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Responding to the IASB proposals to amend IFRS 5 Discontinued Operations, the FEE is not supporting the amendments made and shares most of the significant concerns presented by EFRAG
The convergence efforts should lead to the highest quality accounting solutions, FEE states. “We doubt whether the proposals provide a better solution than the current accounting as laid down in IFRS 5 and fear that the changes may have some unintended consequences”, the Federation says.
The current accounting does not pose major problems, FEE says and underlines it prefers a principles-based solution. “We do not agree with the proposals in the ED and would prefer if IFRS 5 were not changed”, FEE says.
FEE also disagrees with the proposal in the ED that the definition of discontinued operations should focus on ‘operating segments’. “If the IASB were to continue the proposed amendments to IFRS 5, we are of the opinion that the definition of a discontinued operation should not be related to a ‘strategic shift’”, FEE notes.