IASB Publishes Summary of October 2019 Meeting of Advisory Forum
IASB published a summary of the meeting of the Accounting Standards Advisory Forum (ASAF), along with the agenda papers and recordings. The meeting was held on October 03, 2019 at the IFRS Foundation office in London. The key topics of discussion included financial instruments with characteristics of equity and interbank offered rate (IBOR) reform and its effects on financial reporting.
The objective of the session on IBOR reform was to provide an update to the ASAF members on the IBOR Reform project and request further inputs from the ASAF members on potential accounting issues to be considered by IASB during Phase II of the project. A member of the European Financial Reporting Advisory Group (EFRAG) suggested that IASB should focus on the main Phase II issues by adopting a more principle-based approach and by solving the most prominent ones first (that is, modification and derecognition), which might also affect continuity in hedge accounting. The Financial Reporting Council, UK (FRC) member agreed with this view and highlighted the importance of prioritizing the issues that are more urgent.
A member of the Korea Accounting Standards Board (KASB) emphasized modification of financial assets as the most important issue, as timing for IBOR reform gets closer. The KASB member noted that it might be necessary to review whether the IFRS Interpretations Committee’s opinion on this issue should be maintained. Additionally, some members asked IASB to consider multiple exposure hedges for Phase II, where entities manage both foreign currency risk and interest rate risk at the same time.
Moreover, ASAF members discussed the range of project direction alternatives for the project on financial instruments with characteristics of equity; these are the alternatives that were discussed by IASB at its September 2019 meeting. Most ASAF members were supportive of the tentative project direction decided by IASB—that is, making clarifying amendments to IAS 32 on presentation of financial instruments. IASB is mindful of the interaction between presentation and disclosure requirements and its decisions on classification. For example, it would be more efficient for stakeholders and IASB to consult on a comprehensive package that considers both classification and disclosures. Furthermore, developing disclosures independently of the classification requirements may require IASB to revisit disclosures once amendments to classification requirements are developed.
Keywords: International, Accounting, Banking, Securities, IBOR, Interest Rate Benchmarks, Financial Instruments, ASAF, IASB
Previous Article
EU Finalizes Rules on Sustainability-Related DisclosuresRelated Articles
BoE Seeks Information Before Migrating Statistical Reporting to BEEDS
The Bank of England (BoE) published the Statistical Notice 2021/09 requiring additional information from firms and software vendors to assist in the onboarding and testing phases for migrating statistical reporting to the BEEDS portal.
CFRF Publishes Guides to Manage Financial Risks from Climate Change
The working groups of the Climate Financial Risk Forum (CFRF) published a second round of guides (or Session 2 guides), written by the industry for the industry, to help financial firms manage climate-related financial risks.
EBA Updates Filing Rules for Supervisory Reporting
The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
EBA Publishes Standards on Disclosure of Investment Policy Under IFR
The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).
APRA Finalizes Guidance for New Prudential Standard on Remuneration
The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.
ESAs Report on Supervisory Independence of Competent Authorities
The European Supervisory Authorities (ESAs) published individual reports on the supervisory independence of competent authorities in their respective sectors.
FED Updates FR Y-9C Form and Instructions, Proposes to Extend FR 2510
The Board of Governors of the Federal Reserve System (FED) updated reporting form and instructions, along with the associated supplemental instructions, for the information collection on consolidated financial statements for holding companies (FR Y-9C).
OCC Updated LIBOR Self-Assessment Tool for Banks
The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).
