EFRAG extends the period to participate to its field testing (25 October) and to respond to its draft comment letter (4 January 2022) on the New disclosure approach for IAS 19 and IFRS 13

​At its July 2021 meeting, the IASB decided to exceptionally extend the comment period for its Exposure Draft Disclosure Requirements in IFRS Standards—A Pilot Approach   (the 'ED') to 290 days until 12 January 2022. Consequently, EFRAG is: ​​Extending its period to conduct its field-testing with preparers until 25 October 2021. Interested corporates, banks or insurers can register to partake in the field test by emailing disclosureinitiative-pilot@efrag.org by 10 September 2021. ​Extending the comment period of its Draft Comment Letter until 4 January 2022. The draft comment letter can be found here.

The Exposure Draft Disclosure Requirements in IFRS Standards—A Pilot Approach ED/2021/3 ​​(the 'ED') published in March 2021 seeks feedback on a proposed new approach to developing disclosure requirements in IFRS Standards and proposed new disclosure requirements for IFRS 13 Fair Value Measurement and IAS 19 Employee Benefits.

The ED seeks feedback on a proposed new approach to developing disclosure requirements in IFRS Standards and proposed new disclosure requirements for IFRS 13 and IAS 19.

As its July meeting, the IASB decided to extend the comment deadline to 290 days ​​on the 'ED' to 12 January 2022. One important reason for the extended and unusually long comment period, is the unique nature of, and significant new thinking in, the ED and the importance to provide sufficient time for preparers to conduct proper fieldwork and provide feedback on the practical application of the proposals. ​

Following the IASB's decision to extend the comment period for the ED until 12 January 2021, EFRAG is: 

  • ​​Extending its period to conduct its field-testing with preparers until 25 October 2021. Interests​ted corporates, banks or insurers can register to partake in the field-test by emailing disclosureinitiative-pilot@efrag.org by 10 Septemberr 2021. All companies are welcome to participate (bigger and smaller).

  • Extending the comment period to its Draft Comment Letter until 4 January 2022. EFRAG's Draft Comment Letter can be found here​.​​​

EFRAG, in close coordination with the IASB, is conducting field-testing of the IASB's proposals included in the ED.

The field-testing aims at  identifying potential implementation and application concerns of the proposed disclosures in IFRS 13 Fair Value Measurement and IAS 19 Employee benefits, to determine whether there is a need for additional guidance, and to estimate the effort and cost required to implement and apply the proposals. Smaller and larger entities have different perspectives on the practical application of the proposals and it is important to hear different views across industries. We are also interested in hearing from preparers with a range of sizes of employee benefit arrangements and fair value measurements.

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What is field-testing and what will participants be expected to do?
Field-testing involves testing the IASB's proposals by participants applying the IASB's proposals to their financial statements. Participants will be provided with field work instructions. In general, participants will be asked to:

  • Prepare mock disclosures by applying the proposed requirements and summary information about the process of developing those disclosures; and/or
  • Identify individuals to discuss the process around preparing the mock disclosures or the impact of the proposals.

Participants can choose whether they would like to apply the proposals for IFRS 13 and/or IAS 19.

EFRAG will prepare feedback based on the field testing and this will be discussed by EFRAG in public meetings. Any information about the results of the fieldwork released publicly, will not allow readers to identify data about individual participants. EFRAG will use the input collected to prepare its Final Comment Letter. 
For further information see our policy on field testing.

​When will the field testing be conducted?The intention is to finalise any follow-up discussions on the field work by 25 October but we are happy to discuss time arrangements more specifically with each volunteer preparers. 

Would you like to participate?The field testing offers an opportunity to put the proposals to the test and to influence them based on your own experience.
All companies are welcome to participate (bigger and smaller), specifically those with significant employee benefits or items carried at fair value including real estate and financial institutions such as banks and insurers.

Please contact disclosureinitiative-pilot@efrag.org if you are willing to participate. Confirmations of participation should be received by 10 September to allow sufficient time to proceed with the field test. However, EFRAG is flexible in obtaining input through outreaches, recognising the availability and individual circumstances of stakeholders and is open to discuss any specific arrangement and timeline.The commitment of preparers will extend beyond October 2021 as there may be discussions on the field test output and experience with participants in November.

You can contact Fredré Ferreira or Kathrin Schoene for further questions by using the same address mentioned before.​
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