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EFRAG PREPARATORY WORK FOR ENDORSEMENT ADVICE —REGULATORY ASSETS AND REGULATORY LIABILITIES—PREPARATORY SURVEY

BACKGROUND AND SURVEY INSTRUCTIONS

Background

In July 2024, the IASB completed its redeliberations of the proposals in the Exposure Draft Regulatory Assets and Regulatory Liabilities and a final Standard (IFRS X) is expected in the H2 2025. EFRAG anticipates a request from the European Commission for endorsement advice to be issued thereafter. Correspondingly, to facilitate EFRAG’s timely issuance of an endorsement advice after the issuance of IFRS X, EFRAG has commenced related preparatory work including assessing the practicability and conducting a cost-benefit assessment of IFRS X in the European Economic Area (EFRAG’s preparatory work for endorsement advice).

As part of EFRAG’s preparatory work for endorsement advice, this survey, which is targeted at preparers of European entities that are likely to be in the scope of IFRS X, aims to gather information on how IFRS X is likely to affect entities applying it. The survey focuses on critical areas identified by EFRAG’s consultative and decision-making bodies including the EFRAG Rate-regulated Activities Working Group, the EFRAG Financial Reporting Technical Expert Group and the EFRAG Financial Reporting Board. To ensure complementarity of this survey and IASB’s outreach conducted via two surveys in the first half of 2023 and the second half of 2024, the survey builds on the questions included in the most recent IASB survey. In addition, this survey has been designed to allow respondents to skip questions that they have already responded to in the IASB survey. This survey is only a part of EFRAG’s activities for its potential endorsement advice to the European Commission on IFRS X.

Individual responses to this survey will be treated with the strictest confidence and will only be accessible to the EFRAG project team and, with your permission, may be shared with the IASB project team. Completed surveys will not be posted on the EFRAG website and reporting on the survey findings will only be in summarised and anonymised format.
 
Objective

This survey aims to allow EFRAG to gain a better understanding in the following topics:
  • Topic 1: Information on the regulatory agreements currently in place including expected changes in future years.
  • Topic 2: Practicability of applying IFRS X and the likely effects on the information reported in financial statements.
  • Topic 3: Likely costs of implementing IFRS X.
  • Topic 4: Likely effects of entities applying IFRS X will have on the quality of financial reporting.

Survey instructions

The survey consists of general questions (Questions 1–5) and topic-specific questions (Questions 6–34) relating to the four areas listed above. Please select the answer of your choice or mark the survey scale (when provided), and include comments in the boxes provided where needed. Please note that you are:
  • only asked to respond to applicable questions, and
  • some questions will only pop up depending on your responses to the preceding questions.
To help guide your responses to the survey questions, please consider the following:
  • the information in the appendix to this survey relating to Topic 2 (Practicability of applying IFRS X) questions.
  • the ‘Background information’ document.  This document includes information on the main requirements of IFRS X to help guide your responses to topic-specific questions.

If your company is subject to different regulatory schemes (for example, because it operates in more than one industry or jurisdiction), you can either:
  • respond to the survey by considering your most significant regulatory scheme without addressing every regulatory scheme; or 
  • complete separate survey responses for each regulatory scheme that you would like to provide information about.

Should you need to pause or take a break at any time while completing the survey, you can save your responses and continue later by clicking the "save and continue later" banner at the top of each page.

If you have any question/s related to the contents of the survey, please contact Juan Jose Gomez (juanjose.gomez@efrag.org) or Isabel Batista (Isabel.batista@efrag.org).