IFRS published the IFRS Interpretations Committee (IFRIC) update for the meeting in June 2019. The update offers a summary of the tentative decisions of IFRIC, with the discussions largely focusing on the financial instruments (IFRS 9) standard, the leases (IFRS 16) standard, and holdings of crypto-currencies. IFRIC invites comments on the tentative agenda decisions by August 20, 2019.
IFRIC discussed certain matters and tentatively decided not to add them to its standard-setting agenda, including the following:
- Fair Value Hedge of Foreign Currency Risk on Non-Financial Assets (IFRS 9 on financial instruments)—IFRIC received two requests about fair value hedge accounting applying IFRS 9. Both requests asked whether foreign currency risk can be a separately identifiable and reliably measurable risk component of a non-financial asset held for consumption that an entity can designate as the hedged item in a fair value hedge accounting relationship.
- Lessee’s Incremental Borrowing Rate (IFRS 16 on leases)—IFRIC received a request about the definition of a lessee’s incremental borrowing rate in IFRS 16. The request asked whether a lessee’s incremental borrowing rate is required to reflect the interest rate in a loan with both a similar maturity to the lease and a similar payment profile to the lease payments.
- Lease Term and Useful Life of Leasehold Improvements (IFRS 16 and IAS 16 Property, Plant and Equipment)—IFRIC received a request about cancellable or renewable leases. The cancellable lease described in the request is one that does not specify a particular contractual term but continues indefinitely until either party to the contract gives notice to terminate. The contract includes a notice period of, for example, less than 12 months and the contract does not oblige either party to make a payment on termination. The renewable lease described in the request is one that specifies an initial period and renews indefinitely at the end of the initial period, unless terminated by either of the parties to the contract.
Comment Due Date: August 20, 2019
Keywords: International, Accounting, Banking, IFRS 9, IFRS 16, Financial Instruments, Cryptocurrencies, Leases, Hedge Accounting, IFRIC, IFRS
Previous ArticleBDF Publishes Supporting Documents for AnaCredit Reporting
Next ArticleEBA Single Rulebook Q&A: Third Update for June 2019
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.
FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.
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.
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.