EFRAG publishes Discussion Paper: Better Information on Intangibles

EFRAG has published a Discussion Paper: ‘Better Information on Intangibles – which is the best way to go’.

Based on input from the EFRAG Advisory Panel on Intangibles, the Discussion Paper presents different possible approaches to improve information on intangibles together with the related advantages and disadvantages. The Discussion Paper considers information on intangible sources of possible economic benefits other than financial assets. Thus, the scope of ‘intangibles’ considered in the Discussion Paper is broader than intangible assets and covers sources of possible economic benefits that would not be controlled by an entity.

The Discussion Paper considers following three approaches for better information on intangibles:

1. Recognition and measurement in the primary financial statements;
2. Information on specific intangibles in the notes to the financial statements or in the management report; and
3. Information on future-oriented expenses and risk/opportunity factors that may affect future performance in the notes to the financial statements or in the management report.

The Discussion Paper may be accessed here. Comments on the Discussion Paper may be submitted by 30 June 2022.