The International Accounting Standards Board (IASB) is proposing changes to the IFRS Taxonomy 2021 to reflect changes made from amendment to the transition requirements in IFRS 17 on insurance contracts, which was issued in December 2021. The amendment to IFRS 17 stipulates that if an entity applies classification overlay, the entity shall disclose qualitative information that enables users of financial statements to understand the extent to which the classification overlay has been applied as well as whether, and to what extent, the impairment requirements in Section 5.5 of IFRS 9 have been applied. IASB proposes to add one text block element to the IFRS Taxonomy to reflect this new disclosure requirement. The deadline for submitting comments is January 17, 2022. Additionally, the U.S. Financial Accounting Standards Board (FASB) announced the availability of the 2022 GAAP Financial Reporting Taxonomy and the 2022 SEC Reporting Taxonomy.
As communicated by FASB, the 2022 GAAP Financial Reporting Taxonomy contains updates for accounting standards and other recommended improvements. The 2022 SEC Reporting Taxonomy contains improvements for removing references for superseded guidance, adding references to improve selection of the appropriate element for the disclosure requirement, and adding new abstract elements to provide a complete organizational structure. Both the taxonomies are expected to be accepted as final by SEC in early 2022. FASB is also making available the 2022 Data Quality Committee (DQC) Rules Taxonomy. The DQC Rules Taxonomy is uniquely structured from the typical design of XBRL taxonomies because it is narrowly focused on conveying the XBRL US DQC validation rules, predominantly for regulator use. It is not intended to be used in SEC filers’ extension taxonomies, the way that the GAAP Financial Reporting Taxonomy or the SEC’s Document and Entity Information Taxonomy is used. The DQC Rules Taxonomy contains a subset of the DQC rules. The FASB Taxonomy staff evaluated the validation rules for inclusion in the DQC Rules Taxonomy that have been available for use for more than a year, with consideration for how the DQC addressed any feedback received on a validation rule.
Comment Due Date: January 17, 2022 (IFRS Taxonomy 2021)
Keywords: International, Americas, US, Banking, Insurance, IFRS Taxonomy, IFRS 17, IFRS 9, Insurance Contracts, Financial Instruments, Disclosures, GAAP Taxonomy, DQCRT, SEC Reporting Taxonomy, Accounting, IASB, FASB
Previous ArticleHKMA Publishes Multiple Regulatory Updates in December 2021
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.
The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.
Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)
The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)