28. June 2019

ASCG’s answer to the EFRAG questionnaire on alternative accounting treatments for equity instruments

Today, the ASCG has submitted to EFRAG its response to the current consultation, which addresses (potentially inappropriate) accounting requirements for equity and equity-type instruments that are held in a long-term business model. EFRAG effectively suggest that current measurement requirements under IFRS 9 might be inappropriate (we reported).

Our response comprises answers to the questions as well as additional comments. Above all, we have made some general comments on purpose and context of this consultation, stating that

  1. we are not convinced that the consultation is useful,
  2. considering potential alternatives for accounting treatments should preferably done by the IASB,
  3. any such consideration should not be restricted to equity instruments, and
  4. supporting or strengthening long-term financing in the EU should focus on areas and vehicles other than accounting requirements.