ASCG comment letter to EFRAG as regards the Discussion Paper “Accounting for variable cosiderations”

Today, the ASCG has submitted to EFRAG its comment letter on the EFRAG Discussion Paper “Accounting for variable cosiderations” (Avacon).

We concede that the ‘Avacon’ issue is of great impact and the aspects to be considered are complex. Although EFRAG sets out many details, we consider the DP to not being exhaustive. It appears incomplete that for liabilities only the (timing of) recognition, but not measurement questions are brought up for discussion. Also, it seems that for assets mainly the measurement issue is addressed, but not the (timing of) recognition.

Due to the complexity – and bearing in mind previous debates of the IFRS IC, which highlighted that this topic is broad and requires intensive discussion – we consider a public discussion on the “Avacon” topic currently not being appropriate. Rather, the crucial factor is whether and when the IASB itself takes up this issue. As the IASB does not (or no longer) have this topic on its agenda as a result of the 2021 agenda consultation, and as currently other topics have a higher priority for many stakeholders, we consider intensifying the discussion about “Avacon” to not being appropriate at the moment.

For this reason, the ASCG has early finalised its deliberation and the resulting short comment letter on this issue. However, EFRAG’s comment period – which has recently been extended – ends by 30 November 2023.