It now unlikely IFRSs, IFRICs 12-14, IAS 23 (Revised) and IAS 1 (Revised) will be endorsed by the European Financial Reporting Advisory Group (EFRAG) before the end of 2007, after the October meeting of the European Financial Reporting Advisory Group (EFRAG) agreed to conduct more extensive work on the costs and benefits of individual IFRSs and interpretations.

Deloitte noted in its IAS Plus report IASB had apparently agreed to carry out such work when developing proposals for new standards and interpretations, but that commitment would not cover projects already well-advanced and material already issued but not yet endorsed. The EU is discussing with EFRAG the need for some form of cost-benefit study to be carried out as part of the endorsement process.

This work would cover standards and interpretations still to be released and standards and interpretations on which EFRAG has yet to issue final endorsement advice; including IFRIC 13 ‘Customer Loyalty Programmes’; IFRIC 14 ‘The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction’; and IAS 1 (Revised) ‘Presentation of Financial Statements’.

It was noted in the meeting further work was also needed, possibly by the European Commission, covering the material on which EFRAG had already issued its endorsement advice, IFRIC 12 ‘Service Concession Arrangements’; and IAS 23 (Revised) ‘Borrowing Costs’.

Further reading:

FASB wants 'national plan' for accounting standards

Zalm lays down the law on European carve-outs