EFRAG publishes Discussion Paper “Non-Exchange Transfers”

EFRAG has published a discussion paper Non-exchange Transfers – A Role for Societal Benefits on 28 November 2018. The subject of discussion refers to transfers whereby entities do not directly receive (or give) equal value. The scope typically includes transfers with public authorities, e.g. payment of income taxes and levies and proceeds from government grants.

EFRAG propose a new approach that – compared to existing IFRS guidance – in many cases would not change the outcome of accounting but for some transfers would result in recognition of assets and liabilities at an earlier stage.

Comments on the proposals and questions included in the discussion paper can be submitted to EFRAG until 30 April 2019. The IFRS Technical Committee of the ASCG will debate the proposals of the discussion paper during its January meeting