| EFRAG has issued a consolidated feedback statement summarising the input received from the five European events held from March to May 2012. Locations included Amsterdam, London, Milan, Vienna, and Warsaw.
In December EFRAG issued the discussion paper ‘Improving the Financial Reporting of Income Tax’’ (the ‘DP’) in order to solicit input and views from constituents, prior to publication of the final discussion paper.
This publication has been issued together with the UK Accounting Standards Board (UK ASB).
The Discussion Paper on Income tax represents the first step to gain input on whether IAS 12 Income Taxes should be improved, or whether there should be a fundamental rethinking and a new approach to be pursued.
Several commentators argued that IAS 12 is a difficult standard to understand and apply, and users do not find the information reported on income tax useful. Others argued that income tax represents one of the most significant single costs to most businesses and the accounting for it remains relevant.
EFRAG and the UK ASB involved in this proactive project were keen to hear what practitioners and others think about the topics considered in the DP and therefore organised outreach events in four different venues in Europe.
The meetings with constituents were held in Milan, London, Amsterdam, Vienna, and Warsaw.
It is expected that the input from these events will be beneficial to EFRAG and the UK Financial Reporting Council (FRC) in their deliberations on the discussion paper.
Accordingly, EFRAG’s secretariat prepared a separate feedback statement reflecting input received on each event.
EFRAG staff also prepared a consolidated feedback statement summarising the key messages received during the European outreach events.
This consolidated feedback statement will form part of the formal constituent feedback to be considered by EFRAG and the FRC in their evaluation of comments on the discussion paper.
A further feedback statement, reflecting the responses received in writing, is in the course of preparation.
The consolidated feedback statement has been prepared by EFRAG’s secretariat and can be accessed here.
Note for readers:
Following consultation by the FRC and the UK Department for Business, the FRC announced plans earlier this year to streamline its governance and structure. The changes took effect on 2 July 2012. As part of this process, the powers previously delegated to the Accounting Standards Board are delegated to the FRC which is advised by its Accounting Council.