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

    PRA Finalizes Supervisory Approach for Non-Systemic Banks in UK

    PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.

    April 15, 2021 WebPage Regulatory News
    News

    EBA Finalizes Standards on Methods of Prudential Consolidation

    EBA published a report that sets out the final draft regulatory technical standards specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR).

    April 15, 2021 WebPage Regulatory News
    News

    EBA Updates List of Other Systemically Important Institutions in EU

    EBA updated the list of other systemically important institutions (O-SIIs) in EU.

    April 15, 2021 WebPage Regulatory News
    News

    BCBS Report Concludes Basel Risk Categories Can Capture Climate Risks

    BCBS published two reports that discuss transmission channels of climate-related risks to the banking system and the measurement methodologies of climate-related financial risks.

    April 14, 2021 WebPage Regulatory News
    News

    UK Authorities Welcome FSB Review of their Remuneration Regime

    UK Authorities (FCA and PRA) welcomed the findings of FSB peer review on the implementation of financial sector remuneration reforms in the UK.

    April 14, 2021 WebPage Regulatory News
    News

    PRA and FCA Letter on Addressing Risks from Use of Deposit Aggregators

    PRA and FCA jointly issued a letter that highlights risks associated with the increasing volumes of deposits that are placed with banks and building societies via deposit aggregators and how to mitigate these risks.

    April 14, 2021 WebPage Regulatory News
    News

    MFSA to Amend Banking Act and Rules in Coming Months to Transpose CRD5

    MFSA announced that amendments to the Banking Act, Subsidiary Legislation, and Banking Rules will be issued in the coming months, to transpose the Capital Requirements Directive (CRD5) into the national regulatory framework.

    April 14, 2021 WebPage Regulatory News
    News

    EC Delegated Regulation on Specialized Lending Exposures Under CRR

    EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.

    April 14, 2021 WebPage Regulatory News
    News

    OSFI Proposes to Enhance Assurance Expectations for Basel Returns

    OSFI launched a consultation to explore ways to enhance the OSFI assurance over capital, leverage, and liquidity returns for banks and insurers, given the increasing complexity arising from the evolving regulatory reporting framework due to IFRS 17 (Insurance Contracts) standard and Basel III reforms.

    April 13, 2021 WebPage Regulatory News
    News

    ECB Issues Results of Benchmarking Analysis of Recovery Plans of Banks

    ECB published results of the benchmarking analysis of the recovery plan cycle for 2019.

    April 13, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6858