EC Amends Regulation to Include Improvements to IFRS 9
EC published Regulation 2021/1080, which amends Regulation 1126/2008 and adopts certain international accounting standards in accordance with the Regulation 1606/2002 on IFRS 9 on financial instruments. The amendments relate to the annual improvements to IFRS 9, which IASB has issued. This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
IASB issued, on May 14, 2020, the Annual Improvements to IFRS Standards 2018–2020 Cycle in the framework of its regular improvement process. The annual improvements aim to streamline and clarify the existing standards. The objective of the annual improvements is to address non-urgent but necessary issues discussed by IASB during the project cycle on areas of inconsistency in the International Financial Reporting Standards, or where clarification of wording is required. The annual improvements contain amendments to IFRS 9 and other standards. Following a consultation with the European Financial Reporting Advisory Group, EC concluded that the amendments to IFRS 9 meet the criteria for adoption set out in Article 3(2) of Regulation 1606/2002. Therefore, Regulation 1126/2008 has been amended, as set out in the Annex to Regulation 2021/1080. Each company shall apply the amendments to IFRS 9, at the latest, from the commencement date of its first financial year starting on or after January 01, 2022.
Effective Date: July 22, 2021
Keywords: Europe, EU, Banking, Accounting, IFRS 9, Financial Instruments, Annual Improvements, Regulation 1126/2008, IASB, EC
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
CECL, IFRS 9, and IFRS 17 expert; credit risk and insurance risk specialist; strategic planning and credit analytics solutions consultant
CECL adoption expert; engagement manager for loss estimation, internal risk capability enhancement, and counterparty credit risk management
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