IASB published a summary of its October meeting. The discussions covered key topics such as amendments to the insurance contracts standard, impact of interest rate benchmark (IBOR) reform on financial reporting, review of IFRS for small and medium enterprises (SMEs) standard, and certain issues on financial instruments with characteristics of equity.
With respect to the IFRS 17 on insurance contracts, the Board received a summary of the feedback from outreach on the Exposure Draft on amendments to IFRS 17. At the November 2019 meeting, the staff plans to provide the Board with a summary of feedback from comment letters on the Exposure Draft and a plan for redeliberating topics. The Board’s objective remains to issue any amendments to IFRS 17 in mid-2020. Additionally, the Board discussed and took decisions on potential IBOR reform-related accounting issues with respect to the classification and measurement of financial instruments, specifically:
- The assessment of whether a change in the contractual cash flows or terms of a financial instrument is a substantial modification and the accounting requirements for modifications that are not substantial (that is, modifications that do not result in the derecognition of a financial instrument when IFRS 9 on financial instruments is applied)
- Modifications that result in the derecognition of existing financial instruments and the accounting implications of recognizing modified financial instruments as new financial instruments
The Board also discussed its plan to consult stakeholders on the core elements of the Dynamic Risk Management accounting model. After that consultation, the Board will decide how best to pursue the next phase of the project. Also discussed was the 2019 Comprehensive Review of the IFRS for SMEs standard.
Keywords: International, Accounting, Banking, Insurance, Securities, IBOR, IFRS 9, Financial Instruments, Interest Rate Benchmark, IFRS 17, Insurance Contracts, IFRS for SMEs, IASB
Previous ArticleMNB Publishes Fintech Strategy
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.
BCBS and FSB published a report on supervisory issues associated with benchmark transition.
IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.
ESMA updated the reporting manual on the European Single Electronic Format (ESEF).
EBA published a statement on resolution planning in light of the COVID-19 pandemic.
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.
FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.