EFRAG’s first year of operation has seen significant activities in each of the two main fields of its mandate:
- to advise the EU Commission on the acceptability of IASB standards for adoption in Europe, and
- to stimulate a European debate on IASB’s invitations to comment and itself respond to IASB.
In March, the Commission asked EFRAG to advise on whether the extant IAS and SIC Interpretations should be endorsed en bloc. In June EFRAG replied that they should, while noting that many of the standards - and particularly IAS 39 Financial Instruments - were under review and promising that it would take a keen interest in the extent of any improvements.
In September, EFRAG provided a 23 page comment letter to IASB on the Improvements exposure draft. In October, it was also due to finalise its comments on the Proposed Amendments to IAS 32 and 39 and the exposure draft on First-time Application of IFRS.
EFRAG follows a due process under which it places on its website in draft form both its comment letters to IASB and its endorsement advice to the Commission. Reactions to these from organisations and individuals are analysed and considered before finalising the EFRAG comment or endorsement letter.
Copies of the above and further details on EFRAG can be found at www.efrag.org
