EC Amends IFRS 9 on Prepayment Features with Negative Compensation

By Regulatory News

March 26, 2018

EC published Regulation (EU) 2018/498, which amends Regulation (EC) No 1126/2008, adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 as regards International Financial Reporting Standard (IFRS) 9. In the Annex to Regulation (EC) No 1126/2008, IFRS 9 Financial Instruments is being amended as set out in the Annex to this Regulation. Each company shall apply the amendments from the commencement date of its first financial year starting on or after January 01, 2019. This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.

IASB, on October 12, 2017, published amendments to the IFRS 9 Financial Instruments Prepayment features with Negative Compensation. The amendments are intended to clarify the classification of particular prepayable financial assets when applying IFRS 9. IASB set the effective date of the amendments as 1 January 2019 with earlier application permitted. Following consultations with the European Financial Reporting Advisory Group, EC concludes that the amendments to IFRS 9 meet the criteria for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002. Regulation (EC) No 1126/2008 is, therefore, being amended accordingly.

Related Link: Regulation (EU) 2018/498

Effective Date: March 29, 2018

Keywords: Europe, EU, Banking, Accounting, IFRS 9, Prepayment Features, Regulation 2018/498, Reporting, EC

Featured Experts

EBA Revises List of ITS Validation Rules in March 2017


News APRA Updates Lists of Validation and Derivation Rules in December 2019 APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities. December 13, 2019 WebPage Regulatory News
News APRA Finalizes Prudential Standard for Credit Risk Management of Banks APRA updated the prudential standard on credit risk management requirements (APS 220) for authorized deposit-taking institutions, post a public consultation. December 12, 2019 WebPage Regulatory News
News EIOPA Consults on Guidelines on ICT Security and Governance EIOPA issued a consultation on guidelines on the Information and Communication Technology (ICT) security and governance by insurers. December 12, 2019 WebPage Regulatory News
News BCBS Consults on Design of Prudential Treatment for Crypto-Assets BCBS published a discussion paper on the design of prudential treatment for crypto-asset exposures of banks. December 12, 2019 WebPage Regulatory News
News NCUA Approves Delay of Risk-Based Capital Rules Until January 2022 The NCUA Board held its eleventh open meeting of 2019 and approved a final rule to delay the effective date of the risk-based capital rules for credit unions to January 01, 2022. December 12, 2019 WebPage Regulatory News
News APRA Issues Operational Risk Rules, Consults on Reporting Requirements APRA published an updated prudential standard APS 115 that sets out operational risk requirements for authorized deposit-taking institutions in Australia. December 11, 2019 WebPage Regulatory News
News ESMA Updates Q&A on European Benchmarks Regulation in December 2019 ESMA updated the question and answers (Q&A) document on the European Benchmarks Regulation. December 11, 2019 WebPage Regulatory News
News APRA Decides to Keep Countercyclical Capital Buffer for Banks at 0% APRA announced its decision to keep the countercyclical capital buffer (CCyB) for authorized deposit-taking institutions on hold at zero percent. December 11, 2019 WebPage Regulatory News
News ESMA on Draft Amendments to Indices and Recognized Exchanges Under CRR ESMA issued the final report on draft amendments to the Implementing Regulation (EU) 2016/1646, which specifies the main indices and recognized exchanges, under the Capital Requirements Regulation (CRR), that are relevant to credit institutions and investment firms subject to prudential requirements and trading venues. December 11, 2019 WebPage Regulatory News
News FED Extends Consultation Period for Capital Requirements for Insurers FED is extending comment period for the proposed rule establishing risk-based capital requirements for depository institution holding companies that are significantly engaged in insurance activities. December 10, 2019 WebPage Regulatory News

RESULTS 1 - 10 OF 4316