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
Previous ArticleHKMA Publishes Banking Exposure Limits Code Under Banking Ordinance
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
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 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 published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
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 hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.