The European Financial Reporting Advisory Group (EFRAG) on October 11 recommended to the International Accounting Standards Board (IASB) what it considers to be the highest priority projects for it to focus on.
Topping the list is intangibles. EFRAG suggests that IASB should undertake a comprehensive review of the accounting standard on intangible assets, including recognition and measurement requirements. Changes are needed, EFRAG states, to better reflect the increasing importance of intangibles in current business models, to improve comparability between companies that grow organically versus through acquisitions, and to address emerging types of transactions and assets.
Addressing sustainability in financial reporting is the next most urgent item, according to EFRAG. With sustainability reporting developments in Europe and globally, more attention needs to be paid to the connections between sustainability reporting and financial reporting.
Crypto assets and liabilities ranked third on the list. Other identified high-priority projects included discontinued operations and disposal groups, the statement of cash flows, and variable and contingent consideration.
Income tax accounting projects – including a comprehensive review of income tax accounting – were considered medium priority by EFRAG. Other specific income tax projects listed included developing enhanced income tax disclosures and developing accounting requirements for emerging types of taxes.
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