IFRS published a report containing summary of the 18th meeting of the Emerging Economies Group or EEG, which was held in Xiamen, China, during December 02-04, 2019. The meeting was hosted by the Ministry of Finance of PBC and the China Accounting Standards Committee. Key topics discussed at the December meeting included the interest rate benchmark reforms (IBOR), a comprehensive review of the IFRS for SMEs Standard, the 2020 Agenda Consultation, and the experience of China on implementation of IFRS 9 on financial instruments.
Jianqiao Lu, an IASB member, presented an overview of the IASB project to resolve the accounting issues arising from interest rate benchmark reform. Members of the Emerging Economies Group supported the IASB plan to address the issues in two phases. In relation to Phase 2:
- The members of Emerging Economies Group proposed that IASB should not only restrict its consideration to financial instruments in the scope of IFRS 9 but should also consider contracts that can be linked to IBOR—leases, insurance, and revenue contracts. Members of the Emerging Economies Group said they hoped that IASB could provide consistency across the IFRS standards.
- Members of the Emerging Economies Group asked whether IASB would address the modification of financial assets that the IFRS Interpretations Committee had considered in 2016.
It was noted that IASB intends to issue an IBOR Exposure Draft on the proposed amendments during 2020 and may request the Due Process Oversight Committee to consider a comment period of less than 90 days. Additionally, the Emerging Economies Group member from China provided an overview of the implementation of IFRS 9, as adopted in China. The member said that challenges included obtaining the data required to build the models for expected credit losses and the application of judgment to determine assumptions in those models. The next meeting of the Emerging Economies Group will be held in South Africa during May 11–13, 2020.
Keywords: International, Asia Pacific, China, Accounting, Banking, Securities, Interest Rate Benchmarks, IBOR, IFRS 9, Financial Instruments, IFRS for SMEs, Leases, Emerging Economies Group, IFRS 16, IFRS
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