EC Amends Regulations Related to IAS 12 and 7 Plus IFRS 16, 15, and 4
EC published Regulations (EU) 2017/1986 to 1990, which adopt certain international accounting standards in accordance with Regulation (EC) No 1606/2002 with regard to the International Financial Reporting Standards (IFRS) 16, 15, and 4, along with the International Accounting Standards (IAS) 12 and 7. EU Regulations 2017/1986 to 1990 amend the Regulation No 1126/2008. The Commission Regulations (EU) 2017/1986 to 1988 and (EU) 2017/1990 shall enter into force on the twentieth day following that of their publication in the Official Journal of the European Union. The Regulation (EU) 2017/1989 shall enter into force on the third day following that of its publication in the Official Journal of the European Union.
The measures provided for in these regulations are in accordance with the opinion of the Accounting Regulatory Committee and these cover the following:
- Adoption of IFRS 16: Leases, by IASB, implied consequential amendments to certain standards or interpretation of standards. The consultation with the European Financial Reporting Advisory Group confirms that IFRS 16 meets the criteria for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002. Regulation (EC) No 1126/2008 should therefore be amended accordingly in terms of IFRS 16.
- Amendments published by IASB related to IFRS 15: Revenue from Contracts with Customers aim to clarify some requirements and provide additional transitional relief for companies that are implementing the standard. The consultation with the European Financial Reporting Advisory Group confirms that the amendments to IFRS 15 meet the criteria for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002. Regulation (EC) No 1126/2008 should therefore be amended accordingly.
- On September 12, 2016, IASB published amendments to IFRS 4: Insurance Contracts, applying IFRS 9: Financial Instruments with IFRS 4. The amendments to IFRS 4 aim to address the temporary accounting consequences of the different effective dates of IFRS 9 and the new standard for insurance contracts replacing IFRS 4 (IFRS 17). Regulation (EC) No 1126/2008 should therefore be amended accordingly. Amendments to IFRS 4 include amendments to Paragraph 3 and Paragraph 5. New headings have been added for Paragraphs 20, 20K, and 20N. New paragraphs 20A–20Q, 35A–35N, 39B–39M, and 46–49 have been added. Additionally, new headings have been added for Paragraphs 35A, 35K, 35M, 39A, 39J, 45, and 47.
- On January 19, 2016, IASB published amendments to IAS 12: Income Taxes, which aim to clarify how to account for deferred tax assets related to debt instruments measured at fair value. The consultation with the European Financial Reporting Advisory Group confirms that the amendments to IAS 12 meet the criteria for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002. Regulation (EC) No 1126/2008 should therefore be amended accordingly. Amendments to IAS 12 include amendments to Paragraph 29 and addition of paragraphs 27A, 29A, and 98G.
- On January 29, 2016, IASB published amendments to IAS 7: Statement of Cash Flows, which are intended to clarify IAS 7 to improve information provided to users of financial statements about an entity's financing activities. The consultation with the European Financial Reporting Advisory Group confirms that the amendments to IAS 7 meet the criteria for adoption set out in Article 3(2) of Regulation (EC) No 1606/2002. Regulation (EC) No 1126/2008 should therefore be amended accordingly. Amendments to IAS 7 include addition of Paragraphs 44A–44E and the related heading. Paragraph 60 was also added.
Related Links (in PDF)
- Commission Regulation (EU) 2017/1986
- Commission Regulation (EU) 2017/1987
- Commission Regulation (EU) 2017/1988
- Commission Regulation (EU) 2017/1989
- Commission Regulation (EU) 2017/1990
- Commission Regulation (EC) No 1126/2008
Effective Date: November 29, 2017, except November 12, 2017 for Regulation 2017/1989
Keywords: Europe, EU, Banking, Insurance, Accounting, IFRS 16, IFRS 15, IFRS 4, IFRS 9, IAS 12, IAS 7, EC
Previous Article
BCBS Proposes Alternative to Market Risk Standardized ApproachRelated Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards