Featured Product

    EU Amends IFRS 9 Rule, Changes Concern Interest Rate Benchmark Reforms

    January 16, 2020

    EU published Regulation 2020/34 regarding the International Accounting Standard (IAS) 39 and International Financial Reporting Standards (IFRS) 7 and 9. Regulation 2020/34 amends Regulation (EC) No 1126/2008, which adopts certain international accounting standards in accordance with the Regulation (EC) No 1606/2002. The amendments relate to the financial reporting consequences of the interest rate benchmark reform. Regulation 2020/34 shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

    IASB had published, on September 26, 2019, the interest rate benchmark reform related amendments to IFRS 9, IAS 39, and IFRS 7. These amendments were intended to address the financial reporting consequences of the interest rate benchmark reform in the period before the replacement of an existing interest rate benchmark with an alternative reference rate. The amendments provided temporary and narrow exemptions to the hedge accounting requirements of IAS 39 and IFRS 9 to enable companies to continue to meet the requirements, assuming that the existing interest rate benchmarks are not altered because of the interbank offered rate, or IBOR, reform. Following a consultation with the European Financial Reporting Advisory Group (EFRAG), EC concluded that the amendments to IAS 39, IFRS 7, and IFRS 9 meet the criteria for adoption set out in Article 3(2) of Regulation (EC) 1606/2002. Accordingly, this amending regulation has been issued. 

    The amendments for the accounting standards of IAS 39, IFRS 9, and IFRS 7 relate to the respective chapters in the regulation (No 1126/2008) on hedge accounting and on effective date and transition. The amendments have been described in Article 1 and detailed in Annex to the Regulation 2020/34. Each company shall apply the amendments at the latest, as from the commencement date of its first financial year starting on or after January 01, 2020.


    Related Link: Regulation 2020/34

    Effective Date: February 05, 2020

    Keywords: Europe, EU, IAS 39, IFRS 9, IFRS 7, Financial Instruments, Interest Rate Benchmarks, Reporting, European Council, Interest Rate Risk, Hedging, EC, European Parliament

    Featured Experts
    Related Articles
    News

    BIS Bulletin Examines Cognitive Limits of Large Language Models

    The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.

    January 25, 2024 WebPage Regulatory News
    News

    ECB is Conducting First Cyber Risk Stress Test for Banks

    As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.

    January 24, 2024 WebPage Regulatory News
    News

    EBA Continues Momentum Toward Strengthening Prudential Rules for Banks

    A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.

    January 24, 2024 WebPage Regulatory News
    News

    EU and UK Agencies Issue Updates on Final Basel III Rules

    The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards

    December 19, 2023 WebPage Regulatory News
    News

    Industry Agency Expects Considerable Uptake for Swiss Climate Scores

    The Swiss Federal Council recently decided to further develop the Swiss Climate Scores, which it had first launched in June 2022.

    December 18, 2023 WebPage Regulatory News
    News

    BCBS Consults on Disclosure of Climate Risks, Issues Other Updates

    The Basel Committee on Banking Supervision (BCBS) launched consultation on a Pillar 3 disclosure framework for climate-related financial risks, with the comment period ending on February 29, 2024.

    December 18, 2023 WebPage Regulatory News
    News

    US Government Moves to Regulate Development and Use of AI Models

    The U.S. President Joe Biden signed an Executive Order, dated October 30, 2023, to ensure safe, secure, and trustworthy development and use of artificial intelligence (AI).

    December 18, 2023 WebPage Regulatory News
    News

    MAS Launches Gprnt Digital Platform for ESG Reporting for SMEs

    The Monetary Authority of Singapore (MAS) launched an integrated digital platform, Gprnt, also known as “Greenprint.”

    November 29, 2023 WebPage Regulatory News
    News

    EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis

    The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.

    November 28, 2023 WebPage Regulatory News
    News

    NGFS Publishes Phase IV Long-term Climate Scenarios for Banks

    The Network for Greening the Financial System (NGFS) published its latest set of long-term climate macro-financial scenarios (Phase IV) for assessing forward-looking climate risks.

    November 28, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8947