IFRS Emerging Economies Group Discusses IFRS 9 Implementation in China
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
Featured Experts
Janet Zhao
Leads RiskCalc™ model development and R&D of new products, actively advises clients on best practices in credit risk management, and provides thought leadership
Previous Article
ESMA Updates Lists of Guidelines and Standards Under Its MandateRelated Articles
EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB Begins First Phase of Post-Implementation Review of IFRS 9
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB Report Examines Progress in Resolvability of Systemic Institutions
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA Benchmarks National Insolvency Frameworks Across EU
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB Reports Assess Impact of Pandemic on Financial Stability
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ Consults on Implementation of Capital Review Changes
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
IASB Announces Andreas Barckow as the New Chair from July 2021
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA Consults on Capital Rules for Bank Equity Investments in Funds
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).
