26/05/2023 - SUMMARY REPORT - EFRAG BusinessEurope outreach event - Variable consideration – Alternatives to address current accounting challenges
EFRAG has issued a summary report of the joint webinar on EFRAG’s Discussion Paper Accounting for Variable Consideration – From a purchaser’s perspective held on 16 February 2023.
Following a presentation of EFRAG’s Discussion Paper, a panel discussion with representatives from different backgrounds (i.e., user, preparer, standard setter and academic) shared their perspectives on the two main issues addressed by the discussion paper, namely:
- Liability recognition issue: When to recognise a financial liability within the scope of IAS 32 Financial Instruments: Presentation/IFRS 9 Financial Instruments for variable consideration that will depend on the purchaser’s future actions.
- Asset measurement issue: Whether (and if so, when) changes in the estimate of a liability for variable consideration should either: (i) result in updating the cost of the acquired asset that is held by the purchaser; or (ii) be recognised in profit or loss.
EFRAG’s Discussion Paper was presented by Malgorzata Matusewicz, EFRAG FR TEG member and Partner at EY.
The panel included:
- Gary Berchowitz, Partner PwC’s Global Corporate Reporting Department
- Patrina Buchanan, IASB member
- Araceli Mora, EFRAG Academic Panel member, Professor in Accounting and Finance at the University of Valencia
- Serge Pattyn, EFRAG Financial Reporting Board Vice-President, financial analyst and member of the EFFAS Commission on Financial Reporting
- Michael Stewart, Senior Expert of Financial Reporting Group Accounting Policy and Financial Reporting, Huawei Global Finance (UK) Limited.
The panel discussions were held in two sessions respectively moderated by:
- Michael Fechner, EFRAG FRB member and Manager at Mercedes-Benz Group AG’s Accounting Department, who moderated the liability recognition issue discussion
- Claes Norberg, Chair BusinessEurope Sounding Board and EFRAG Administrative Board member, Director of Accountancy at the Confederation of Swedish Enterprise, who moderated the asset measurement issue discussion.
The audience contributed to the discussion through polling questions and during a Q&A session.
Read the summary report and access the event recordings.
