FASB published the tentative decisions taken at its Board meeting in June 2020. Among other issues, FASB discussed agenda requests regarding the effective date of Accounting Standards Update No. 2018-12 on the targeted improvements to accounting for long-duration insurance contracts (Topic 944). FASB voted to issue a proposed Accounting Standard Update that would grant insurance companies that issue long-duration contracts an additional year to implement the Accounting Standards Update No. 2018-12. Stakeholders will have 45 days to review and provide comment on the proposed Accounting Standard Update, which FASB expects to issue in the coming weeks. FASB directed the staff to draft a proposed Update for vote by written ballot.
At the June meeting, FASB also decided against adding a project to the technical agenda to introduce an alternative effective date of the amendments in Update 2018-12 for certain reinsurance arrangements. Additional decisions were to
- Add a project to the technical agenda to amend the effective date of the amendments in Update 2018-12
- Propose a one-year deferral of the effective date of the amendments in Update 2018-12 for all insurance entities
- Propose a change to the early application provisions of Update 2018-12, whereby the early application transition date would be the beginning of the prior period
Keywords: Americas, US, Insurance, Accounting, Tentative Decisions, Insurance Contracts, Topic 944, IFRS 17, Implementation Timeline
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.
ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
EC adopted a decision determining, for a limited period of time, that the regulatory framework applicable to central counterparties, or CCPs, in the UK and Northern Ireland is equivalent to the requirements laid down in the European Market Infrastructure Regulation (EMIR or Regulation 648/2012).
EBA has decided to phase out the guidelines on legislative and non-legislative moratoria of loan repayments, in accordance with the earlier specified end of September deadline.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.