23/03/2020 - EFRAG extends the application period for the field-tests on Primary Financial Statements
In light of the recent concerns surrounding COVID-19 and the restrictive measures from European Governments, recognising the economic implications for companies and financial institutions, EFRAG has extended the application period for the field-tests on the IASB's Exposure Draft ED/2019/7 General Presentation and Disclosures (ED) until the end of April 2020. Expression of
interest received at a later date will be considered by EFRAG. EFRAG encourages companies and financial institutions to, despite the circumstances, participate in the field-tests on the IASB's ED. EFRAG will allow flexibility in terms of communication and timing. Close coordination with the IASB is ensured.
EFRAG invites companies to participate in the field-testing on the IASB's project Primary Financial Statements
EFRAG, in close coordination with European National Standard Setters and the IASB, will conduct field-testing of the IASB proposals included in the Exposure Draft ED/2019/7 General Presentation and Disclosures (ED), which was published in December 2019.
The purpose of the field-testing is to identify potential implementation and application concerns, to determine whether there is a need for additional guidance, and to estimate the effort required to implement and apply the proposals.
What is field-testing and what will participants be expected to do?
Field-testing involves testing the IASB's proposals by participants applying the IASB's proposals to their financial statements. Participants are asked to follow the IASB's fieldwork instructions and EFRAG's additional fieldwork instructions.
More specifically, participants will be asked to prepare/complete:
the statement of profit or loss and the statement of cash flows before and after applying the IASB proposals to simulate the application of the proposals in the Exposure Draft ('recasting');
selected note disclosures affected by the proposals;
the IASB's questionnaire covering the recasting, including questions regarding the application of specific aspects of the proposals; and
EFRAG's questionnaire/additional fieldwork instructions covering specific areas of European interest.
When and how will the field-testing be conducted?
If you would like to participate in the field-testing, please contact Cristina Rodriguez at firstname.lastname@example.org by the end of April 2020. Expression of interest received at a later date will still be considered by EFRAG. The participants selected for the field-testing will be invited to run the simulation exercise and prepare the detailed answers to the questionnaires throughout in April 2020 (or another timing agreed with individual participants adapted to their circumstances). The findings of the participants will be discussed in workshops in May 2020 or later. The workshops will be run by the EFRAG Secretariat in cooperation with the representatives of the European National Standard Setters and the IASB. Participants will be asked to share their key findings and the completed questionnaires with the EFRAG Secretariat 5 days in advance of the workshops. These workshops may, depending on the circumstances, take the form of webcast meetings. EFRAG Secretariat will closely communicate with field-testing participants during the whole process.
In the end, EFRAG will prepare feedback statements from the workshops and publish them on its website. The feedback statements will also be discussed by EFRAG in public meetings. Any information about the results of the fieldwork, that we release publicly, will not allow readers to identify data about individual participants unless specific permission is given.
Would you like to participate?
The field-testing offers an opportunity to put the proposals to the test and to influence them based on your own experience.
All companies are welcome to participate, including:
Corporates (e.g. Energy, Industrials, Healthcare, Technology, Telecoms, Utilities, etc)
Corporates that conduct investing or financing activities as part or in the course of their main business activities (e.g. manufacturer providing financing to customers)
Financial Institutions (e.g. banks and insurance companies)
Investment property companies.
If you would like to participate in the field-testing, please contact Cristina Rodriguez at email@example.com. Please respond if feasible by the end of April 2020.
If you have a technical question or would like to receive more information about the field-testing, please contact Kathrin Schöne (firstname.lastname@example.org) and Filipe Alves (email@example.com).