IASB Proposes Updates to IFRS Taxonomy for 2019
IASB proposed to update the IFRS taxonomy for 2019 in the context of the interest rate benchmark reform. The proposed update includes IFRS taxonomy elements to reflect the new disclosure requirements introduced by the amendments to IFRS 7, IFRS 9, and IAS 39. IASB issued these new disclosure requirements September 2019. IAS 39 is the old standard on financial instruments, IFRS 9 is the new standard of financial instruments, and IFRS 7 is the standard on disclosures of financial instruments. The deadline for submitting comments is December 13, 2019. The amendments apply to annual periods beginning on or after January 01, 2020. Earlier application of the amendments, and therefore earlier use of the IFRS taxonomy elements, is permitted.
The amendments, which IASB issued in September 2019, require qualitative and quantitative disclosures to enable users of financial statements to understand how an entity’s hedging relationships are affected by the uncertainty arising from interest rate benchmark reform. IASB proposes to add six new elements to the IFRS taxonomy, as described in paragraph 3 of the proposed update. In addition, the Board proposes to add documentation labels for all the new elements and an implementation note for one new monetary element, as described in paragraphs 8–10 of the proposed update. The IFRS taxonomy files are not being provided for this proposed update because the changes are narrow in scope. However, a final IFRS taxonomy update will be released after the IASB approval.
Comment Due Date: December 13, 2019
Keywords: International, Accounting, Banking, IFRS 9, IAS 39, Financial Instruments, Disclosures, Interest Rate Benchmarks, IBOR, IFRS 7, IFRS Taxonomy, Reporting, IASB
Featured Experts
Metin Epözdemir
Metin Epözdemir helps European and African banks with design and implementation of credit risk, stress testing, capital management, and credit loss accounting solutions.
Masha Muzyka
CECL, IFRS 9, and IFRS 17 expert; credit risk and insurance risk specialist; strategic planning and credit analytics solutions consultant
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Previous Article
HKMA Reduces Countercyclical Capital Buffer in Hong Kong to 2.0%Related Articles
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.
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).
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.
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.
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.
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.
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.
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.
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.
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.
