EFRAG’s Response to the IFRS Foundation Trustees’ Invitation to Comment IFRS Taxonomy Due Process

​EFRAG has published its response to the IFRS Foundation’s Invitation to
Comment IFRS Taxonomy Due Process and the related feedback statement addressing
the comment letters EFRAG received.

The Invitation to Comment, as published by the Trustees of the
IFRS Foundation  in November 2015, addresses the proposed enhanced due process
for the development and maintenance of the IFRS Taxonomy. Proposed changes
entail giving the IASB a role in reviewing and approving the content of the IFRS
Taxonomy.

EFRAG received five comment letters on its draft comment letter
which have been carefully considered in arriving at the final EFRAG letter.
EFRAG has published together with its letter a feedback statement on the
comments received.

EFRAG’s comment letter on the Invitation to Comment IFRS
Taxonomy Due Process acknowledges the importance of the IFRS Foundation itself
in continuing to develop and maintain an IFRS Taxonomy in order to control the
quality of the Taxonomy and the use of the 'IFRS' brand name.  EFRAG is very
much supportive of the Trustees’ statement that Taxonomy considerations should
not dictate the standard-setting process.

Jurisdictions that would adopt the IFRS Taxonomy as the
mandatory electronic reporting format for the IFRS financial statements for
their jurisdiction expect and require a robust due process and governance that
gives legitimacy to the IFRS Taxonomy. EFRAG therefore proposes the
establishment of a specialised committee similar to the IFRS Interpretations
Committee with specific rights and obligations. The IASB would discuss and
approve the strategic directions including the governing principles how to
present financial statements in a structured format and considerations about the
boundaries of the IFRS Taxonomy. The specialised committee composed of IFRS
financial reporting experts with knowledge and expertise of taxonomies,
supported by the relevant technical staff and operating within the strategic
directions set by the IASB and under the oversight of the IASB, would prepare
the Proposed Taxonomy Updates.

EFRAG’s Letter can be accessed here.

EFRAG’s feedback statement can be accessed here.

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