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IASB Annual Improvements Project 2009-2011 cycle


The Annual Improvements Project considers the narrow in scope amendements to IFRSs in areas which needs clarifying or correcting. Those amandements does not propose a new principle or a change to the existing pronciple.Issues submitted by constituents for consideration within the annual improvements process are considered and discussed by the IFRS Interpretations Committee and by the IASB. The IASB intends to publish an omnibus ED once a year.

In June 2011 IASB published the Exposure Draft Improvements to IFRSs with amandements proposed to IFRS 1 First-time Adoption of IFRSs, IAS 1 Presentation of Financial Statements, IAS 16 Property, Plant and Equipment, IAS 32 Financial Instruments: Presentation and IAS 34 Interim Financial Reporting.

EFRAG issued its Draft Comment Letter to the ED on 20 July 2011. EFRAG agrees with all proposals in the ED. However, regarding the amendment relating to accounting for taxes on distributions to owners, EFRAG believes that the IASB should also address the internal inconsistency in IAS 12 Income Tax rather than just amending IAS 32 Financial Instruments: Presentation. The comment period is 30 September 2011.

EFRAG has issued its Final Comment Letter to the IASB on the Exposure Draft 'Improvements to IFRSs'.

EFRAG agrees with most proposals in the ED, except for the amendment to:

  • IAS 1 to reflect the Conceptual Framework for Financial Reporting 2010
  • IAS 32 relating to distributions to holders of equity instruments

EFRAG is concerned about the increasing complexity of IFRS 1 and recommends the Board to consider the longer term development of IFRS 1.

In May 2012, the IASB has issued 'Annual Improvements 2009-2011 Cycle' which contains a collection of amendments to IFRSs, in response to six issues addressed during the 2009-2011 cycle.

In June 2012, EFRAG has issued an invitation to comment relating to the endorsement of the Annual Improvements to IFRSs 2009-2011 Cycle for use in the European Union and European Economic Area. EFRAG is consulting both on its assessment of the Annual Improvements to IFRSs 2009-2011 Cycle against the technical criteria for the endorsement in the EU and on its initial assessment of the costs and benefits that would arise from the implementation and application of Annual Improvements to IFRSs 2009-2011 in the EU.
EFRAG's initial assessment is that the Annual Improvements to IFRSs 2009-2011 satisfy the technical criteria for EU endorsement and EFRAG should therefore recommend their endorsement.
Comments are invited on the draft endorsement advice and effects study report by 25 July 2012.

After having consulted with its Costituents, in August EFRAG agreed to issue to the European Commission both the positive endorsement advice and the effective study report. On 27 March 2013 the Amendments to IFRSs were endorsed. The official text was published in the Official Journal on 28 March 2013.

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