EFRAG has published its draft comment letter in response to the IFRS Foundation's Exposure Draft Proposed amendments to the IFRS Foundation Due Process Handbook and seeks constituents' views on the proposals. Responses to the draft comment letter are requested by 12 July 2019.

The main proposed amendments to the Handbook are to:

  • clarify the scope and role of the effect analysis throughout the standard-setting process;
  • clarify the status of agenda decisions published by the IFRS IC and the nature of explanatory material contained therein;
  • provide the IASB with the ability to publish its own agenda decisions;
  • reflect that entities should be entitled to sufficient time to consider an agenda decision and if necessary, implement an accounting policy change;
  • refine the categorisation? and review of educational material produced by the IFRS Foundation;
  • refine the consultation required before adding major projects to the IASB’s work plan;
  • clarify the DPOC’s oversight of the IFRS Taxonomy due process; and
  • highlight the role of the IFRS Advisory Council as a strategic advisory body. 

In its draft comment letter EFRAG acknowledges that most of the proposals provide necessary clarifications to the existing processes, reflect recent developments in working practices and improve internal consistency and understandability of the Due Process Handbook. 

However, EFRAG suggests that for major projects, detailed effect analysis reports should be issued at each stage when key due process documents are issued.

EFRAG is also concerned about the ambiguity of the status and objectives of IFRS IC agenda decisions. EFRAG considers that the IASB should ensure in its due process that agenda decisions only contain explanatory material and references to the mandatory content of IFRS Standards and that diversity in practice and IFRS-like guidance is addressed through standard-setting such as through the annual improvements process. EFRAG also raises concerns about the proposed Board agenda decisions.

EFRAG requests comments on its draft responses to the questions raised in the ED by 12 July 2019.