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 Updates List of Validation Rules for Reporting by Banks
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA Responds to EC Call for Advice to Strengthen AML/CFT Framework
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS Advocates Environmental Risk Analysis for Financial Sector
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS Issues Guidelines to Promote Senior Management Accountability
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA Formalizes Capital Treatment and Reporting of COVID-19 Loans
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB Chair Discusses Path to Harmonized Liquidation Regime for Banks
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB Workshop Discusses Preliminary Findings of Too-Big-To-Fail Reforms
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB Updates List of Supervised Entities in EU in September 2020
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI Identifies Focus Areas to Strengthen Third-Party Risk Management
OSFI published the key findings of a study on third-party risk management.
FSB Extends Implementation Timeline for Framework on SFTs
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.
