November 09, 2017

EC published Regulations (EU) 2017/1986 to 1990, which adopt certain international accounting standards in accordance with Regulation (EC) No 1606/2002 with regard to the International Financial Reporting Standards (IFRS) 16, 15, and 4, along with the International Accounting Standards (IAS) 12 and 7. EU Regulations 2017/1986 to 1990 amend the Regulation No 1126/2008. The Commission Regulations (EU) 2017/1986 to 1988 and (EU) 2017/1990 shall enter into force on the twentieth day following that of their publication in the Official Journal of the European Union. The Regulation (EU) 2017/1989 shall enter into force on the third day following that of its publication in the Official Journal of the European Union.

The measures provided for in these regulations are in accordance with the opinion of the Accounting Regulatory Committee and these cover the following:

  • Adoption of IFRS 16: Leases, by IASB, implied consequential amendments to certain standards or interpretation of standards. The consultation with the European Financial Reporting Advisory Group confirms that IFRS 16 meets the criteria for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002. Regulation (EC) No 1126/2008 should therefore be amended accordingly in terms of IFRS 16.
  • Amendments published by IASB related to IFRS 15: Revenue from Contracts with Customers aim to clarify some requirements and provide additional transitional relief for companies that are implementing the standard. The consultation with the European Financial Reporting Advisory Group confirms that the amendments to IFRS 15 meet the criteria for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002. Regulation (EC) No 1126/2008 should therefore be amended accordingly.
  • On September 12, 2016, IASB published amendments to IFRS 4: Insurance Contracts, applying IFRS 9: Financial Instruments with IFRS 4. The amendments to IFRS 4 aim to address the temporary accounting consequences of the different effective dates of IFRS 9 and the new standard for insurance contracts replacing IFRS 4 (IFRS 17). Regulation (EC) No 1126/2008 should therefore be amended accordingly. Amendments to IFRS 4 include amendments to Paragraph 3 and Paragraph 5. New headings have been added for Paragraphs 20, 20K, and 20N. New paragraphs 20A–20Q, 35A–35N, 39B–39M, and 46–49 have been added. Additionally, new headings have been added for Paragraphs 35A, 35K, 35M, 39A, 39J, 45, and 47.
  • On January 19, 2016, IASB published amendments to IAS 12: Income Taxes, which aim to clarify how to account for deferred tax assets related to debt instruments measured at fair value. The consultation with the European Financial Reporting Advisory Group confirms that the amendments to IAS 12 meet the criteria for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002. Regulation (EC) No 1126/2008 should therefore be amended accordingly. Amendments to IAS 12 include amendments to Paragraph 29 and addition of paragraphs 27A, 29A, and 98G.
  • On January 29, 2016, IASB published amendments to IAS 7: Statement of Cash Flows, which are intended to clarify IAS 7 to improve information provided to users of financial statements about an entity's financing activities. The consultation with the European Financial Reporting Advisory Group confirms that the amendments to IAS 7 meet the criteria for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002. Regulation (EC) No 1126/2008 should therefore be amended accordingly. Amendments to IAS 7 include addition of Paragraphs 44A–44E and the related heading. Paragraph 60 was also added.

 

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Effective Date: November 29, 2017, except November 12, 2017 for Regulation 2017/1989

Keywords: Europe, EU, Banking, Insurance, Accounting, IFRS 16, IFRS 15, IFRS 4, IFRS 9, IAS 12, IAS 7, EC