In its Green Paper on Long Term Investment, the European Commission questioned whether current financial reporting requirements – including the use of fair value – were having a possible adverse effect on long term investment in Europe.

As the European Commission’s technical advisor on financial reporting matters, EFRAG has decided earlier this year to run a specific consultation on how to best depict a long term business model and whether it would have features that accounting requirements should help best reflect. EFRAG's letter to the European Commission explains EFRAG's findings and conclusions reached to date. It also explains the recommendations that EFRAG has already made to the IASB, so that they can influence the finalisation of IFRS 9 classification and measurement requirements, and possibly other amendments to existing standards.

EFRAG_letter_to_the_EC_-_reflecting_long-term_investment_business_models_in_financial_reporting.pdf:
http://www.efrag.org/files/EFRAG%20Output/EFRAG_letter_to_the_EC_-_reflecting_long-term_investment_business_models_in_financial_reporting.pdf