OIC and the National Standard Setters of France, Germany and the UK jointly with EFRAG publish the Bulletin Complexity

The national standard setters of France, Germany, Italy and the UK jointly with EFRAG have published the Bulletin Complexity to promote discussion, and to help form European views that are influential in the debate on the IFRS Conceptual Framework.

Many recent reports have expressed concern that financial statements have become too complex, to the detriment of users’ understanding. These reports acknowledge that some of this complexity arises because transactions are becoming increasingly complex. However, they also note other possible causes, including the degree of complexity in IFRSs.

Despite this common concern about complexity in financial statements and the criticism of IFRS as being too complex, neither the existing Conceptual Framework nor the IASB’s discussion paper on the review of the Conceptual Framework include or propose much guidance on the issue.

The Bulletin reflects in detail on the causes of complexity in accounting and suggests that additional guidance in the Conceptual Framework could be of help to minimise complexity.

Comments are invited by 30 April 2014. The comments received will be considered in developing views so as to best express European views in the IASB consultation process.

For information about the project, please refer to the relative page.