EFRAG Advisory Panel on Intangibles: Call for candidates

How does an entity create, maintain and
enhance value? What information about intangibles do investors need but cannot find
in the financial statements? EFRAG calls for experts to its Advisory
Panel on Intangibles by 21 February 2020.

How could an entity improve
the information provided to investors about how it creates, maintains or
enhances value? 

  • Is it confusing that acquired intangibles are
    recognised on the statement of financial position whilst the
    non-acquired intangibles are not?
  • Should internally generated intangibles be
    recognised in the statement of financial position?
  • Would a statement of core intangibles measured at
    fair value in the notes be useful? To what extent is this usefulness impacted
    by the embedded assumptions, potential management bias, lack of
    independent challenge and inconsistencies across businesses?
  • Should the cost of developing unrecognised intangible
    assets be separately disclosed?
  • Would KPIs on core intangibles, following the
    business plan, and a link with financial performance measures be useful?
  • What other information regarding intangibles could be useful?

EFRAG is researching suggested
disclosures and current best practice in this area whilst
considering the related costs and effort. The Advisory Panel will discuss real-life examples
based on information reported in the financial statements as well as tailored
examples developed for the purpose of discussion on how an entity
creates, maintains and enhances value. Joint dialogue between users and preparers
will enhance the understanding of both perspectives. Based on
these discussions, proposals will be tested on other industries (to the
extent they are not industry specific) and be published in an EFRAG discussion
paper for public consultation.

The Advisory Panel will initially focus
on the following sectors:

  • Biotech, pharmaceuticals and health care
    equipment & supplies;
  • Interactive media and software;
  • Household products, personal products, textiles
    and apparel & luxury goods.

EFRAG is therefore calling for
candidates for its Advisory Panel such as users (including valuators) and preparers of IFRS financial statements to provide
their views on what information is useful for investors.  When selecting members, a geographical balance
will be pursued. If you are interested in becoming a member of the Panel,
please send a short application, including a CV to nominations@efrag.org by 21 February 2020.

The first meeting is expected to take place on 27 March 2020 in EFRAG's offices.

 

To
obtain more information about the Advisory Panel see the Terms of Reference
that can be downloaded here​.​

If
you require further information or have any questions about the project, please
contact: intangibles@efrag.org​.​​

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