This follows confirmation from the European Financial Reporting Advisory Group (EFRAG) that IFRIC Interpretation 21 meets the technical criteria for adoption set out in EU legislation.

IFRIC 21 is an interpretation of IAS 37, Provisions, Contingent Liabilities and Contingent Assets, which sets out criteria for the recognition of a liability, one of which is the requirement for the entity to have a present obligation as a result of a past event (known as an obligating event). The Interpretation clarifies that the obligating event that gives rise to a liability to pay a levy is the activity described in the relevant legislation that triggers the payment of the levy.

IFRIC 21 will be effective in the EU, at the latest, from the commencement date of a company’s first financial year starting on or after 17 June 2014.

The Commission Regulation is available at http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:JOL_2014_175_R_0003&from=EN