The European Financial Reporting Advisory Group (EFRAG) has issued a call to action for European stakeholders to contribute to the IASB’s surveys on intangibles accounting by 30 November 2024. These surveys are critical to shaping the future of financial reporting for intangible assets, a growing area of focus in modern accounting.
Purpose of the IASB Surveys
The surveys are designed to collect insights from investors, companies, and other stakeholders to address key aspects of intangibles accounting, including:
- Defining the problem areas the IASB should tackle.
- Determining the scope and focus of the project.
- Developing a staged approach to deliver impactful and timely improvements.
The surveys are user-friendly, requiring no more than 20 minutes to complete.
EFRAG’s Commitment to Intangibles Reporting
EFRAG has been at the forefront of advocating for enhanced financial reporting of intangibles:
- In 2021, it published the Discussion Paper: Better Information on Intangibles, which examined potential strategies for improved reporting.
- In April 2023, it released a Recommendations and Feedback Statement, advising the IASB to:
- Clarify and potentially expand the scope of IAS 38.
- Explore a hybrid approach that includes recognition, future-oriented expense information, and detailed data on key intangibles.
- Allow recognition only for assets that meet strict criteria while providing exemptions for commercially sensitive disclosures.
Call for Stakeholder Feedback
EFRAG emphasizes the importance of stakeholder input to ensure the project reflects diverse perspectives. Participants are encouraged to clarify if their responses apply only to specific categories of intangibles. This nuance will help guide IASB in adopting targeted and effective reforms.
Why This Matters
Intangible assets, such as intellectual property and brand value, are increasingly vital to global businesses. Standardizing their reporting will enhance transparency, comparability, and decision-making for investors and stakeholders.