Further to our prior report: “EFRAG: ESRS Revisions Work Plan Released,” in response to a letter from EU Commissioner Maria Luis Albuquerque on its June 20 progress report, EFRAG announced that it will extend its next consultation on the ESRS simplification that is planned to launch at the end of July to 60 days rather than 30 – 45 days, as previously contemplated.
EU Commissioner Albuquerque’s letter outlines several principles that the Commission expects EFRAG to take into account in its simplification efforts, including a reporting focus on “strategically important information” and interoperability with the ISSB standards. Notably, with regard to the latter, the letter further indicates that in the event EFRAG uncovers instances where interoperability would hamper simplification of the ESRS, it “might explore with the ISSB the possibility that the IFRS S1 and S2 standards could be simplified in a corresponding manner.”
In early May, the Society submitted a letter and responses to an online questionnaire to EFRAG in response to its initial public consultation on the ESRS revisions, which we then summarized and incorporated into an updated and refined position paper submitted in June to numerous members of the European Parliament, Commission, and Council in advance of the European Parliament’s internal deadline to submit its proposed amendments on the European Commission’s Omnibus Simplification Proposal.
If you are interested in joining the Society’s 70+-member EU Omnibus Simplification working group aimed at mitigating the compliance burdens and costs associated with these regulatory mandates, please contact Randi Morrison.