Status: Will be live at 11/24/2015 00:00
IIF Response Letter - ED Conceptual Framework
Tuesday, November 24, 2015
The IIF Senior Accounting Group (SAG) submitted its response letter to the IASB's Exposure Draft (ED) revising the existing Conceptual Framework for Financial Reporting (CF). One of the key issues discussed in the letter are concerns regarding the potential implications of the new definition of a "liability", which is based on the broad concept of having "no practical ability to avoid a transfer", the condition of which is much more subjective and open to interpretation than the current definition. As such, the SAG believes that it would be more relevant, more easily understandable, and more practical to consider whether there is an expectation of outflows of economic benefits from the entity in settlement of the obligation, as laid down in the current definition.'