Featured Product

    EC Amends Regulation on IFRS 16 in Response to COVID-19 Crisis

    October 12, 2020

    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

    Featured Experts
    Related Articles
    News

    HKMA Finalizes Policy Modules on Group-Wide Approach and Remuneration

    The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.

    July 29, 2021 WebPage Regulatory News
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    ECB Study Assesses Impact of Basel III Finalization Package

    The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.

    July 26, 2021 WebPage Regulatory News
    News

    ISDA Finds FRTB Results in Higher Capital Charges for Carbon Trading

    The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.

    July 26, 2021 WebPage Regulatory News
    News

    PRA Updates Remuneration Policy Statement Templates and Tables

    The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.

    July 26, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7311