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IFRS Foundation: Review of the IFRS Interpretations Committee


The IFRS Interpretations Committee (formerly the IFRIC) is responsible for providing interpretative guidance of accounting issues that are likely to give rise to divergent or unacceptable treatments in the absence of authoritative IFRS guidance.

In November 2010, the IFRS Foundation Trustees' Due Process Oversight Committee issued a request for views to assess the operational effectiveness of the Interpretations Committee. The review is being conducted by means of a questionnaire.

EFRAG issued its Draft Comment Letter responding to this request on 17 December 2010 and requested comments by 31 January 2011.

EFRAG finalised its comment letter on 23 February 2011. EFRAG's main concern relates to the application of the Committee's agenda criteria and the assessment of some of the requests it receives, particularly when the issues are complex. Furthermore, it is not always clear to us when an issue ought to be resolved through an amendment to an IFRS or an Interpretation.

EFRAG is also concerned with some of the wordings for rejection used by the Committee in its publication of the 'IFRIC Update' to explain its tentative agenda decisions.

In addition, we believe that a 30-day comment period for tentative agenda decisions does not always provide sufficient time to allow constituents to appropriately analyse the issues, respect their own due process and respond to the Committee on a timely manner.

EFRAG has issued a comment letter to the IASB and the project is now closed.
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