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

    NGFS Seeks Public Feedback on Climate Risk Assessment Scenarios

    The Network for Greening the Financial System (NGFS) launched its first user feedback survey on climate scenarios, with the feedback period ending on February 27, 2023.

    February 06, 2023 WebPage Regulatory News
    News

    EBA Launches Stress Tests for Banks, Issues Other Updates

    The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.

    January 31, 2023 WebPage Regulatory News
    News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News
    News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8702