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European Union formally adopts amendments concerning novations of derivatives and recoverable amount disclosures

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20 Dec 2013

The European Union has published Commission Regulations endorsing 'Novation of Derivatives and Continuation of Hedge Accounting (Amendments to IAS 39)' and 'Recoverable Amount Disclosures for Non-Financial Assets (Amendments to IAS 36)'.

Commission Regulation (EC) No 1375/2013 of 19 December 2013 amending Regulation (EC) No 1126/2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council published in the Official Journal on 20 December 2013 adopts the amendments made by the IASB in June 2013 eliminating the need to discontinue hedge accounting if a hedging derivative is novated, provided certain criteria are met.

Commission Regulation (EC) No 1374/2013 of 19 December 2013 amending Regulation (EC) No 1126/2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council published in the Official Journal on 20 December 2013 adopts the amendments made by the IASB in May 2013 clarifying that the scope of the disclosures of information about the recoverable amount of assets, where that amount is based on fair value less costs of disposal, is limited to impaired assets.

The European effective dates are the same ones the IASB has given the amendments (1 January 2014).

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