EC published Regulation 2020/1434 on the IFRS 16 standard on leases. Regulation 2020/1434 amends Regulation 1126/2008 adopting certain international accounting standards in accordance with the Regulation 1606/2002. Annex to the Regulation 2020/1434 details amendments to IFRS 16 with respect to the rent concessions related to the COVID-19 event. Each company shall apply these amendments, at the latest, as from June 01, 2020 for financial years starting on or after January 01, 2020. Considering the urgency of this operational relief related to the COVID-19 event, Regulation 2020/1434 shall enter into force on the day following that of its publication in the Official Journal of the European Union.
In May 2020, IASB had published COVID-19-related rent concessions (amendment to IFRS 16). The amendment to IFRS 16 provides optional, temporary COVID-19-related operational relief for lessees benefitting from lease payments holidays without undermining the relevance and usefulness of financial information reported by companies. Following a consultation with the European Financial Reporting Advisory Group, EC concluded that the amendments to IFRS 16 meet the criteria for adoption set out in Article 3(2) of Regulation No 1606/2002. IASB set the effective date of the amendments to IFRS 16 from June 01, 2020. Therefore, the provisions of Regulation 2020/1434 shall apply retroactively to ensure legal certainty for the concerned issuers and to ensure consistency with other accounting standards laid down in Regulation No 1126/2008. Therefore, Regulation 1126/2008 has been amended accordingly.
Related Link: Regulation 2020/1434
Effective Date: October 13, 2020
Keywords: Europe, EU, Banking, Securities, COVID-19, IFRS 16, Leases, Payment Holiday, Regulation 2020/1434, Lease Concessions, IASB, EC
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.
The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).
The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.
The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."
The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.