EFRAG requests comments on its draft endorsement advice on Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)

In order to help entities apply materiality judgements to accounting policy disclosure, in February 2021, the IASB issued amendments to IAS 1 Presentation of Financial Statements, IFRS Practice Statement 2 Making Materiality Judgements (the Amendments).

EFRAG has issued draft endorsement advice letter on the Amendments and has invited comments on its assessment against the technical criteria in the European Union and on its assessment of whether the Amendments are conducive to the European public good. EFRAG's overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore recommends its endorsement. The endorsement advice only addresses the changes in IAS 1 as the Practice Statement has not been endorsed for application in the European Union.

EFRAG’s draft endorsement advice may be accessed here. The invitation to comment and the link for comment submission may be accessed here. Comments are requested by 7 June 2021.