The European Financial Reporting Advisory Group (EFRAG) has released its Feedback Statement on the IASB’s Exposure Draft IASB/ED/2024/5, which proposes amendments to IFRS 19: Subsidiaries without Public Accountability: Disclosures. The statement summarizes stakeholder feedback and explains how it influenced EFRAG’s Final Comment Letter, issued on 28 November 2024.
Key Takeaways from EFRAG’s Response:
Support for IASB’s Approach – EFRAG backed the proposed updates incorporating all new IFRS disclosure requirements issued between February 2021 and May 2024.
Concerns Over Disclosure Principles – EFRAG noted that the criteria for reducing disclosure requirements need greater transparency and alignment with the needs of financial statement users.
Call for Greater Engagement – EFRAG recommended that the IASB establish a consultative group with users, particularly lenders, to ensure financial disclosures meet their needs.
Review Process for Future Amendments – To enhance clarity, EFRAG suggested implementing a three-year review period for future IFRS 19 amendments.
EFRAG’s feedback highlights the importance of transparent, practical, and effective financial disclosure requirements to support entities without public accountability.
To find out more details please visit : https://www.efrag.org/