IASB Publishes Meeting Updates for August 2019
IASB published a summary of its August meeting presenting the preliminary decisions of the Board. IASB met on August 28, 2019 to discuss certain identified issues and reviewed the feedback that was received on the exposure draft on interest rate benchmark reform at the July 2019 Board meeting. IASB also discussed specifics regarding the permission for balloting amendments to the new and old standards on financial instruments—IFRS 9 and IAS 39.
The key tentative decisions include the following:
- The scope of the exceptions proposed in the exposure draft should be clarified so the exceptions apply only to the hedging relationships directly affected by uncertainties about the timing or amount of interest rate benchmark-based cash flows of the hedged item or hedging instrument arising from the reform.
- Entities should be exempt from the disclosure requirements in paragraph 28(f) of IAS 8 on "Accounting Policies, Changes in Accounting Estimates and Errors," on the initial application of the amendments. The disclosure requirements accompanying the exceptions proposed in the exposure draft should also be simplified so that only certain specific information is required in the notes to the financial statements for hedging relationships directly affected by interest rate benchmark reform. This includes information regarding description of the significant interest rate benchmarks to which the entity’s hedging relationships are exposed and an explanation of how the entity is managing its transition to using an alternative interest rate benchmark.
IASB agreed that the amendments to IFRS 9 and IAS 39 should not be re-exposed. All Board members confirmed they were satisfied the Board has complied with the applicable due process and has undertaken sufficient consultation and analysis to begin the balloting process for the amendments to IFRS 9 and IAS 39.
Keywords: International, Accounting, Banking, Securities, IBOR, Interest Rate Benchmarks, Financial Instruments, IFRS 9, IAS 39, Disclosure Requirements, Hedging, IASB
Featured Experts

Metin Epözdemir
Metin Epözdemir helps European and African banks with design and implementation of credit risk, stress testing, capital management, and credit loss accounting solutions.

Anna Krayn
CECL adoption expert; engagement manager for loss estimation, internal risk capability enhancement, and counterparty credit risk management

Masha Muzyka
CECL, IFRS 9, and IFRS 17 expert; credit risk and insurance risk specialist; strategic planning and credit analytics solutions consultant
Next Article
MAS to Accept Applications for Digital Bank LicensesRelated Articles
FED Revises Capital Planning and Stress Testing Requirements for Banks
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB Releases Results of Bank Lending Survey for Fourth Quarter of 2020
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.
ESAs Publish Reporting Templates for Financial Conglomerates
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
EBA Publishes Report on Asset Encumbrance of Banks in EU
EBA published the annual report on asset encumbrance of banks in EU.
MAS Revises Guidelines on Technology Risk Management
MAS revised the guidelines that address technology and cyber risks of financial institutions, in an environment of growing use of cloud technologies, application programming interfaces, and rapid software development.
US Agencies Publish Updates for Call Reports, FFIEC 101, and FR Y-9C
FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.
EBA Proposes Guidelines for Establishing Intermediate Parent Entities
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
EC Adopts Financial Reporting Changes Arising from Benchmark Reforms
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HMT Updates List of Post-Brexit Equivalence Decisions in UK
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.