IASB published a summary of its October meeting. The discussions covered key topics such as amendments to the insurance contracts standard, impact of interest rate benchmark (IBOR) reform on financial reporting, review of IFRS for small and medium enterprises (SMEs) standard, and certain issues on financial instruments with characteristics of equity.
With respect to the IFRS 17 on insurance contracts, the Board received a summary of the feedback from outreach on the Exposure Draft on amendments to IFRS 17. At the November 2019 meeting, the staff plans to provide the Board with a summary of feedback from comment letters on the Exposure Draft and a plan for redeliberating topics. The Board’s objective remains to issue any amendments to IFRS 17 in mid-2020. Additionally, the Board discussed and took decisions on potential IBOR reform-related accounting issues with respect to the classification and measurement of financial instruments, specifically:
- The assessment of whether a change in the contractual cash flows or terms of a financial instrument is a substantial modification and the accounting requirements for modifications that are not substantial (that is, modifications that do not result in the derecognition of a financial instrument when IFRS 9 on financial instruments is applied)
- Modifications that result in the derecognition of existing financial instruments and the accounting implications of recognizing modified financial instruments as new financial instruments
The Board also discussed its plan to consult stakeholders on the core elements of the Dynamic Risk Management accounting model. After that consultation, the Board will decide how best to pursue the next phase of the project. Also discussed was the 2019 Comprehensive Review of the IFRS for SMEs standard.
Keywords: International, Accounting, Banking, Insurance, Securities, IBOR, IFRS 9, Financial Instruments, Interest Rate Benchmark, IFRS 17, Insurance Contracts, IFRS for SMEs, IASB
Previous ArticleMNB Publishes Fintech Strategy
In a letter addressed to the industry, the Australian Prudential Regulation Authority (APRA) set out an updated schedule of policy priorities for the banking, insurance, and superannuation industries.
The European Commission (EC) adopted a comprehensive review package of Solvency II rules in the European Union.
The Office of the Comptroller of the Currency (OCC) issued Versions 1.0 of the "Earnings" and "Regulatory Reporting" booklets of the Comptroller's Handbook.
The European Central Bank (ECB) published results of its economy-wide climate stress test, which aimed to assess the resilience of non-financial corporates and euro area banks to climate risks.
The European Banking Authority (EBA) published a report on the use of digital platforms in the banking and payments sector in European Union.
The Hong Kong Monetary Authority (HKMA) published updates on the policy measures that were announced in context of the ongoing pandemic.
The International Swaps and Derivatives Association (ISDA), along with several other associations, submitted a joint response to the Basel Committee on Banking Supervision (BCBS) consultation on preliminary proposals for the prudential treatment of cryptoasset exposures.
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.