Following consultation with members of the PwC network of firms, this response summarizes the views of member firms who commented on the tentative agenda decision, published in the January 2013 edition of IFRIC Update.
Mr Michael Stewart
Director of Implementation Activities
International Accounting Standards Board
30 Cannon Street
19 March 2013
Dear Mr Stewart
Tentative agenda decision: IAS 10 Events after the reporting period—Reissuing previously issued financial statements
We are responding to your invitation to comment on the above tentative agenda decision, published in the January 2013 edition of IFRIC Update, on behalf of PricewaterhouseCoopers. Following consultation with members of the PricewaterhouseCoopers network of firms, this response summarises the views of member firms who commented on the tentative agenda decision. ‘PricewaterhouseCoopers’ refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
We agree with the committee’s decision not to take this question onto the agenda and that the guidance in IAS 10 is clear that financial statements prepared in accordance with IFRSs should reflect adjusting events and disclose all non-adjusting events up to the date that the financial statements are authorised for issue.
We note, however, that the committee observes in the tentative agenda decision that ‘if financial statements reflect transactions and events after the balance sheet date that IFRSs do not permit to be reflected, or fail to reflect transactions or events after the balance sheet date that IFRSs require to be reflected, then those financial statements are not in compliance with IFRSs’. We believe that this statement addresses a question that was not asked in the submission and is an issue for which clarification was not requested. We are also concerned that the statement could be interpreted to prohibit the inclusion of supplementary financial information about the impact of post balance sheet events alongside IFRS financial statements, for example, in an offering document.
We suggest to the committee that this statement is deleted as it is unnecessary and does not address the request for clarification.
If you have any questions in relation to this letter please do not hesitate to contact John Hitchins (020 7804 2497) or Tony de Bell (020 7213 5336).