IASB Publishes Work Plan and Meeting Updates for June 2019
IASB published an updated work plan and a summary of its June meeting, which presents preliminary decisions of the Board. The topics discussed at the June meeting included primary financial statements, rate-regulated activities, goodwill and impairment, small and medium-size entities (SMEs) standard review and update (covering IFRS 9 and 16), and financial instruments with characteristics of equity.
IASB discussed the 2019 comprehensive review of the IFRS for SMEs Standard. In particular, IASB discussed whether the Request for Information to be published as part of the 2019 Review should seek views on whether and how to align the IFRS for SMEs Standard with standards and amendments not incorporated in the IFRS for SMEs Standard. IASB decided to seek views in the Request for Information on aligning the IFRS for SMEs Standard with IFRS 9, in particular, on:
- Introducing principles for the classification and measurement of financial assets based on contractual cash flows
- Not amending the requirements of the IFRS for SMEs Standard in certain areas
- The need for requirements on hedge accounting for entities applying the IFRS for SMEs Standard and, subject to clarifying those needs, on retaining the current requirements for hedge accounting in Section 12
- Aligning the IFRS for SMEs Standard with the simplified approach in IFRS 9 for the impairment of financial assets
- Changing the fallback to IAS 39 on recognition and measurement of financial instruments to fallback to IFRS 9, if the requirements of the IFRS for SMEs Standard are aligned with IFRS 9
Additionally, IASB decided to seek views in the Request for Information on aligning the IFRS for SMEs Standard with IFRS 16 on leases and, in particular, on:
- Requiring a single lease accounting model to be applied to all leases, other than short-term or low-value asset leases
- Incorporating simplifications and practical expedients already permitted by IFRS 16
- Introducing additional simplifications
Keywords: International, Accounting, Banking, Work Plan, IFRS 16, IFRS 9, Financial Instruments, Hedging, Leases, IAS 39, IASB
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Scott Dietz
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
Masha Muzyka
CECL, IFRS 9, and IFRS 17 expert; credit risk and insurance risk specialist; strategic planning and credit analytics solutions consultant
Previous Article
EC Amends Regulation on Supervisory Disclosures Under CRD IVRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
