EU published Regulation 2020/34 regarding the International Accounting Standard (IAS) 39 and International Financial Reporting Standards (IFRS) 7 and 9. Regulation 2020/34 amends Regulation (EC) No 1126/2008, which adopts certain international accounting standards in accordance with the Regulation (EC) No 1606/2002. The amendments relate to the financial reporting consequences of the interest rate benchmark reform. Regulation 2020/34 shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
IASB had published, on September 26, 2019, the interest rate benchmark reform related amendments to IFRS 9, IAS 39, and IFRS 7. These amendments were intended to address the financial reporting consequences of the interest rate benchmark reform in the period before the replacement of an existing interest rate benchmark with an alternative reference rate. The amendments provided temporary and narrow exemptions to the hedge accounting requirements of IAS 39 and IFRS 9 to enable companies to continue to meet the requirements, assuming that the existing interest rate benchmarks are not altered because of the interbank offered rate, or IBOR, reform. Following a consultation with the European Financial Reporting Advisory Group (EFRAG), EC concluded that the amendments to IAS 39, IFRS 7, and IFRS 9 meet the criteria for adoption set out in Article 3(2) of Regulation (EC) 1606/2002. Accordingly, this amending regulation has been issued.
The amendments for the accounting standards of IAS 39, IFRS 9, and IFRS 7 relate to the respective chapters in the regulation (No 1126/2008) on hedge accounting and on effective date and transition. The amendments have been described in Article 1 and detailed in Annex to the Regulation 2020/34. Each company shall apply the amendments at the latest, as from the commencement date of its first financial year starting on or after January 01, 2020.
Related Link: Regulation 2020/34
Effective Date: February 05, 2020
Keywords: Europe, EU, IAS 39, IFRS 9, IFRS 7, Financial Instruments, Interest Rate Benchmarks, Reporting, European Council, Interest Rate Risk, Hedging, EC, European Parliament
Previous ArticleFASB Issues Update on Interactions Among Topics 321, 323, and 815
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.