Featured Product

    IFRS Publishes Statement on Its Work During the COVID-19 Crisis

    March 27, 2020

    IFRS, in its statement, emphasized that it shares global concerns about the impact of COVID–19 and is supporting its stakeholders by reconsidering timelines of its meetings and publications, providing information on the application of IFRS 9 on financial instruments, and offering calendar updates on ongoing activities. IFRS published a document responding to questions about the application of IFRS 9 during the enhanced economic uncertainty arising from the COVID-19 pandemic. The document acknowledges that estimating expected credit losses on financial instruments is challenging in the current circumstances and highlights the importance of companies using all available reasonable and supportable information—historic, current, and forward-looking to the extent possible—when determining whether lifetime losses should be recognized on loans and in measuring expected credit losses. IASB will also postpone to May 2020 the publication of several narrow-scope amendments to IFRS standards originally planned for March and April 2020.

    The document regarding application of IFRS 9 is prepared for educational purposes, highlighting requirements within the standard that are relevant for companies considering how the pandemic affects their accounting for expected credit loss. This material is intended to support the consistent and robust application of IFRS 9. The document reinforces that IFRS 9 does not provide bright lines nor a mechanistic approach in accounting for expected credit loss. Accordingly, companies may need to adjust their approaches to forecasting and determining when lifetime losses should be recognized to reflect the current environment. The IFRS Foundation and IASB continue to work in close cooperation with regulators and others regarding the application of IFRS 9 and the document encourages companies to consider guidance provided by prudential and securities regulators. 

    Furthermore, despite the challenges arising from the COVID-19 pandemic, IASB and its technical staff continue to advance time-sensitive projects, such as the projects on interbank offered rate (IBOR) reform and amendments to IFRS 17 Insurance Contracts, in accordance with the original project plans. Recognizing the importance of giving the stakeholders enough time to respond effectively to its work, the Board will discuss specific measures during its April meeting.

    Keywords: International, Banking, Insurance, Securities, IFRS 9, COVID-19, Financial Instruments, Expected Credit Loss, IBOR Reform, IFRS 17, Insurance Contracts, IASB, IFRS

    Featured Experts
    Related Articles
    News

    UK Government to Set Out Rules on Wind-down of Critical Benchmarks

    HM Treasury notified that, after considering all responses, the government intends to bring forward further legislation, when the Parliamentary time allows, to address issues identified in the consultation on supporting the wind-down of critical benchmarks.

    May 07, 2021 WebPage Regulatory News
    News

    EIOPA Launches Stress Test for Insurance Sector in EU

    EIOPA launched the 2021 stress test for the insurance sector in EU.

    May 07, 2021 WebPage Regulatory News
    News

    UK Authorities Publish Third Edition of Regulatory Initiatives Grid

    UK authorities jointly published the third edition of Regulatory Initiatives Grid setting out the planned regulatory initiatives for the next 24 months.

    May 07, 2021 WebPage Regulatory News
    News

    EC Consults on Regulation on Non-Financial Sustainability Disclosures

    EC is requesting feedback on the proposed Commission Delegated Regulation on the content, methodology, and presentation of information that large financial and non-financial undertakings should disclose about their environmentally sustainable economic activities under the Taxonomy Regulation.

    May 07, 2021 WebPage Regulatory News
    News

    OSFI Outlines Prudential Policy Priorities for Coming Months

    OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.

    May 06, 2021 WebPage Regulatory News
    News

    BIS Announces TechSprint on Innovative Green Finance Solutions

    Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.

    May 06, 2021 WebPage Regulatory News
    News

    ACPR Publishes Version 1.0.0 of RUBA Taxonomy

    ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.

    May 06, 2021 WebPage Regulatory News
    News

    EBA Proposed Regulatory Standards for Central Database on AML/CFT

    EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.

    May 06, 2021 WebPage Regulatory News
    News

    ECB Responds to EC Consultation on Crisis Management Framework

    ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.

    May 06, 2021 WebPage Regulatory News
    News

    BCBS, CPMI, and IOSCO to Survey Market Participants on Margin Calls

    BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.

    May 05, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6942