he European Financial Reporting Advisory Group (EFRAG) has formally requested the International Accounting Standards Board (IASB) to extend the comment period for its recently issued Exposure Draft (ED) Provisions – Targeted Improvements to May 12, 2025.
The IASB released the ED on November 12, 2024, proposing targeted amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets. The suggested changes aim to clarify the criteria for determining a present obligation and propose modifications to the measurement of provisions.
EFRAG’s Perspective
EFRAG acknowledges that the proposed amendments are intended to refine, not overhaul, IAS 37. However, following an initial evaluation, the organization highlights several concerns:
- Need for Clarity: Further analysis is required to ensure the proposals are sufficiently clear and do not lead to unintended consequences.
- Timing Challenges: The amendments are not deemed urgent, and the current period marks the ‘busy season’ for the accounting profession across Europe, complicating efforts to gather comprehensive feedback.
- Stakeholder Engagement: An extended comment period would enable EFRAG, alongside national standard setters in EU member states, to collect and assess information on the potential impacts of the proposed changes.
Request for Extension
EFRAG has proposed a 60-day extension to the original deadline, emphasizing that this additional time would allow for more thorough stakeholder participation in outreach activities. Such an extension, EFRAG argues, would ultimately improve the quality and relevance of the resulting amendments.
What’s Next
Stakeholders are encouraged to continue reviewing the Exposure Draft and providing feedback while awaiting a decision from the IASB on the requested extension.