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.
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
EBA published the annual report on asset encumbrance of banks in EU.
FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
ECB published a letter from Andrea Enria, the Chair of the Supervisory Board of ECB, answering questions raised by the President of the Bundestag (the German federal parliament) on how ECB assesses the financial stability of the euro area in the context of the significant level of nonperforming loans.