EFRAG submits its Endorsement Advice on amendment to IAS 1 and IFRS Practice Statement 2 to European Commission
16 July 2021
EFRAG has submitted its Endorsement Advice on Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) to the European Commission.
In February 2021, the IASB issued Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) (the Amendments). The Amendments to IAS 1 Presentation of Financial Statements require entities to disclose their material accounting policy information rather than their significant accounting policies. Amendments to IFRS Practice Statement 2 Making Materiality Judgements explain the application of the materiality concept to accounting policy disclosures.
EFRAG’s endorsement advice only addresses the changes to IAS 1 as the Practice Statement has not been endorsed for application in the European Union.
EFRAG has assessed that the Amendments meet the technical endorsement criteria of the IAS Regulation and are conducive to the European public good and has recommended its endorsement.
The Endorsement Advice Letter may be accessed here.