Featured Product

    IASB Publishes Summary of October 2019 Meeting of Advisory Forum

    November 18, 2019

    IASB published a summary of the meeting of the Accounting Standards Advisory Forum (ASAF), along with the agenda papers and recordings. The meeting was held on October 03, 2019 at the IFRS Foundation office in London. The key topics of discussion included financial instruments with characteristics of equity and interbank offered rate (IBOR) reform and its effects on financial reporting.

    The objective of the session on IBOR reform was to provide an update to the ASAF members on the IBOR Reform project and request further inputs from the ASAF members on potential accounting issues to be considered by IASB during Phase II of the project. A member of the European Financial Reporting Advisory Group (EFRAG) suggested that IASB should focus on the main Phase II issues by adopting a more principle-based approach and by solving the most prominent ones first (that is, modification and derecognition), which might also affect continuity in hedge accounting. The Financial Reporting Council, UK (FRC) member agreed with this view and highlighted the importance of prioritizing the issues that are more urgent. 

    A member of the Korea Accounting Standards Board (KASB) emphasized modification of financial assets as the most important issue, as timing for IBOR reform gets closer. The KASB member noted that it might be necessary to review whether the IFRS Interpretations Committee’s opinion on this issue should be maintained. Additionally, some members asked IASB to consider multiple exposure hedges for Phase II, where entities manage both foreign currency risk and interest rate risk at the same time. 

    Moreover, ASAF members discussed the range of project direction alternatives for the project on financial instruments with characteristics of equity; these are the alternatives that were discussed by IASB at its September 2019 meeting. Most ASAF members were supportive of the tentative project direction decided by IASB—that is, making clarifying amendments to IAS 32 on presentation of financial instruments. IASB is mindful of the interaction between presentation and disclosure requirements and its decisions on classification. For example, it would be more efficient for stakeholders and IASB to consult on a comprehensive package that considers both classification and disclosures. Furthermore, developing disclosures independently of the classification requirements may require IASB to revisit disclosures once amendments to classification requirements are developed.

     

    Keywords: International, Accounting, Banking, Securities, IBOR, Interest Rate Benchmarks, Financial Instruments, ASAF, IASB

    Related Articles
    News

    APRA Decides to Standardize Submission Date for Quarterly Reporting

    APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.

    May 11, 2021 WebPage Regulatory News
    News

    Bundesbank Publishes Supporting Documentation for Reporting by Banks

    Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.

    May 11, 2021 WebPage Regulatory News
    News

    ECB Working Group Publishes Recommendations on EURIBOR Fallbacks

    The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).

    May 11, 2021 WebPage Regulatory News
    News

    EBA Publishes Phase 1 of Reporting Framework 3.1

    EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).

    May 10, 2021 WebPage Regulatory News
    News

    APRA to Finalize Capital Adequacy Standard Revisions by January 2022

    Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA

    May 10, 2021 WebPage Regulatory News
    News

    ESMA Issues Guidelines on Outsourcing to Cloud Service Providers

    ESMA published the final guidelines on outsourcing to cloud service providers.

    May 10, 2021 WebPage Regulatory News
    News

    EBA Publishes Data on Deposit Guarantee Schemes

    EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.

    May 10, 2021 WebPage Regulatory News
    News

    OSFI Sets Out Plan for Future Guidance on Managing Technology Risk

    OSFI has set out the schedule for release of draft guidance on the management of technology risks by federally regulated financial institutions and private pension plans.

    May 10, 2021 WebPage Regulatory News
    News

    MAS Updates Housing Loan Rules, Proposes Corporate Governance Guidance

    MAS updated rules for new housing loans by banks and finance companies.

    May 10, 2021 WebPage Regulatory News
    News

    HKMA Publishes Guideline on Sustainable Finance Grant Scheme

    HKMA published a statement on the 100% Personal Loan Guarantee Scheme and a guideline on the Green and Sustainable Finance Grant Scheme (GSF Grant Scheme) as announced in the 2021-22 Budget.

    May 09, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6959