IASB proposed to update the IFRS taxonomy for 2019 in the context of the interest rate benchmark reform. The proposed update includes IFRS taxonomy elements to reflect the new disclosure requirements introduced by the amendments to IFRS 7, IFRS 9, and IAS 39. IASB issued these new disclosure requirements September 2019. IAS 39 is the old standard on financial instruments, IFRS 9 is the new standard of financial instruments, and IFRS 7 is the standard on disclosures of financial instruments. The deadline for submitting comments is December 13, 2019. The amendments apply to annual periods beginning on or after January 01, 2020. Earlier application of the amendments, and therefore earlier use of the IFRS taxonomy elements, is permitted.
The amendments, which IASB issued in September 2019, require qualitative and quantitative disclosures to enable users of financial statements to understand how an entity’s hedging relationships are affected by the uncertainty arising from interest rate benchmark reform. IASB proposes to add six new elements to the IFRS taxonomy, as described in paragraph 3 of the proposed update. In addition, the Board proposes to add documentation labels for all the new elements and an implementation note for one new monetary element, as described in paragraphs 8–10 of the proposed update. The IFRS taxonomy files are not being provided for this proposed update because the changes are narrow in scope. However, a final IFRS taxonomy update will be released after the IASB approval.
Comment Due Date: December 13, 2019
Keywords: International, Accounting, Banking, IFRS 9, IAS 39, Financial Instruments, Disclosures, Interest Rate Benchmarks, IBOR, IFRS 7, IFRS Taxonomy, Reporting, IASB
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
Previous ArticleFSB Finalizes and Publishes the Cyber Lexicon
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.
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.
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.
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.
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
The European Banking Authority (EBA) recently issued several regulatory publications impacting the banking sector.
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.
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.
The Financial Stability Board (FSB) recently published the second annual progress report on the July 2021 roadmap to address climate-related financial risks.
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.