IASB published the exposure draft ED 2019/2 that proposes amendments to four IFRS standards, including IFRS 9 on Financial Instruments and IFRS 16 on Leases. This consultation is a part of the annual maintenance and improvements of the standards. Comments period on this consultation ends on August 20, 2019.
The draft includes a section for each IFRS standard or accompanying document for which an amendment is proposed. Each section includes an explanation of the proposed amendment, the paragraphs affected by the proposed amendment, and the basis for the Board’s conclusions in proposing the amendment. The proposed amendments to IFRS 9 clarifies the fees a company includes in assessing the terms of a new or modified financial liability to determine whether to "derecognize" a financial liability. The amendment to IFRS 16 removes the potential for confusion regarding lease incentives by amending an Illustrative Example accompanying IFRS 16.
The annual improvements process provides a mechanism for dealing efficiently with a collection of minor amendments to IFRS standards. The process is limited to changes that either clarify the wording in an IFRS standard or correct relatively minor unintended consequences, oversights, or conflicts between requirements in the standards.
Comment Due Date: August 20, 2019
Keywords: International, Banking, IFRS 9, IFRS 16, IFRS, Financial Instruments, Leases, IASB
Previous ArticleDenis Beau of BDF on Supervisory Priorities for Climate-Change Risks
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.