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13/07/2015 - EFRAG publishes a Bulletin on profit or loss versus OCI

EFRAG has published a Bulletin to contribute to the discussion on what items should be reported in profit or loss and what items should be reported as items of other comprehensive income. The Bulletin is published to help form European views that are influential in the debate on the IFRS Conceptual Framework.

EFRAG is running this public consultation in parallel with its public consultation on the IASB Exposure Draft Conceptual Framework for Financial Reporting.

The Exposure Draft includes a presumption that all items of income and expense should be included in profit or loss, however, it considers that in some cases different measurement bases might have to be selected for the statement of financial position and the statement of profit or loss. In these cases the IASB may decide that items should be reported in other comprehensive income (OCI).

The Exposure Draft lists some factors to consider when selecting measurement bases, but does not provide much guidance on how the measurement bases might be selected.

In the Bulletin Profit or loss versus OCI, EFRAG explores how to articulate the necessary guidance reflecting the role of the business model in the selection of measurement bases.

Comments on the Bulletin are requested by 26 October 2015.

Bulletin Getting a Better Framework - Profit or Loss versus OCI.pdf