The Financial Reporting Council (FRC) - together with the European Financial Reporting Advisory Group (EFRAG), the French Autorité des Normes Comptables (ANC), the Accounting Standards Committee of Germany (ASCG), and the Italian standard-setter, Organismo Italiano di Contabilité (OIC) - has published for consultation a bulletin, The Role of the Business Model in Financial Reporting.

The bulletin - one way in which EFRAG stimulates debate in Europe while keeping members abreast of developments with the Conceptual Framework of the International Accounting Standards Board - presents an assumed meaning of the term 'business model' which currently remains undefined in IFRS literature.

The document also provides a conceptual discussion as to whether financial statements based on the business model meet the qualitative characteristics in the IASB Conceptual Framework.

EFRAG's tentative view is that this is the case and within the document, discusses the distinction between the business model and management intent, presenting its view that a valid distinction exists.

The bulletin concludes by considering the implications of the business model for financial reporting under IFRS.

EFRAG invites comments by no later than 30 September 2013.