Featured Product

    IFRS Publishes Statement on Its Work During the COVID-19 Crisis

    March 27, 2020

    IFRS, in its statement, emphasized that it shares global concerns about the impact of COVID–19 and is supporting its stakeholders by reconsidering timelines of its meetings and publications, providing information on the application of IFRS 9 on financial instruments, and offering calendar updates on ongoing activities. IFRS published a document responding to questions about the application of IFRS 9 during the enhanced economic uncertainty arising from the COVID-19 pandemic. The document acknowledges that estimating expected credit losses on financial instruments is challenging in the current circumstances and highlights the importance of companies using all available reasonable and supportable information—historic, current, and forward-looking to the extent possible—when determining whether lifetime losses should be recognized on loans and in measuring expected credit losses. IASB will also postpone to May 2020 the publication of several narrow-scope amendments to IFRS standards originally planned for March and April 2020.

    The document regarding application of IFRS 9 is prepared for educational purposes, highlighting requirements within the standard that are relevant for companies considering how the pandemic affects their accounting for expected credit loss. This material is intended to support the consistent and robust application of IFRS 9. The document reinforces that IFRS 9 does not provide bright lines nor a mechanistic approach in accounting for expected credit loss. Accordingly, companies may need to adjust their approaches to forecasting and determining when lifetime losses should be recognized to reflect the current environment. The IFRS Foundation and IASB continue to work in close cooperation with regulators and others regarding the application of IFRS 9 and the document encourages companies to consider guidance provided by prudential and securities regulators. 

    Furthermore, despite the challenges arising from the COVID-19 pandemic, IASB and its technical staff continue to advance time-sensitive projects, such as the projects on interbank offered rate (IBOR) reform and amendments to IFRS 17 Insurance Contracts, in accordance with the original project plans. Recognizing the importance of giving the stakeholders enough time to respond effectively to its work, the Board will discuss specific measures during its April meeting.

    Keywords: International, Banking, Insurance, Securities, IFRS 9, COVID-19, Financial Instruments, Expected Credit Loss, IBOR Reform, IFRS 17, Insurance Contracts, IASB, IFRS

    Featured Experts
    Related Articles
    News

    ISSB Sustainability Standards Expected to Become Global Baseline

    The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.

    September 18, 2023 WebPage Regulatory News
    News

    IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance

    Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.

    September 18, 2023 WebPage Regulatory News
    News

    BCBS Assesses NSFR and Large Exposures Rules in US

    The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.

    September 14, 2023 WebPage Regulatory News
    News

    Global Agencies Focus on ESG Data, Climate Litigation and Nature Risks

    At the global level, supervisory efforts are increasingly focused on addressing climate risks via better quality data and innovative use of technologies such as generative artificial intelligence (AI) and blockchain.

    September 14, 2023 WebPage Regulatory News
    News

    ISSB Standards Shine Spotlight on Comparability of ESG Disclosures

    The finalization of the IFRS sustainability disclosure standards in late June 2023 has brought to the forefront the themes of the harmonization of sustainability disclosures

    August 22, 2023 WebPage Regulatory News
    News

    EBA Issues Several Regulatory and Reporting Updates for Banks

    The European Banking Authority (EBA) recently issued several regulatory publications impacting the banking sector.

    August 10, 2023 WebPage Regulatory News
    News

    BCBS Proposes to Revise Core Principles for Banking Supervision

    The Basel Committee on Banking Supervision (BCBS) launched a consultation on revisions to the core principles for effective banking supervision, with the comment period ending on October 06, 2023.

    August 04, 2023 WebPage Regulatory News
    News

    US Proposes Final Basel Rules, Transition Period to Start in July 2025

    The U.S. banking agencies (FDIC, FED, and OCC) recently proposed rules implementing the final Basel III reforms, also known as the Basel III Endgame.

    August 04, 2023 WebPage Regulatory News
    News

    FSB Report Outlines Next Steps for Climate Risk Roadmap

    The Financial Stability Board (FSB) recently published the second annual progress report on the July 2021 roadmap to address climate-related financial risks.

    August 04, 2023 WebPage Regulatory News
    News

    EBA Plans on Ad-hoc ESG Data Collection and Climate Scenario Exercise

    The recognition of climate change as a systemic risk to the global economy has further intensified regulatory and supervisory focus on monitoring of the environmental, social, and governance (ESG) risks.

    July 31, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8931