EFRAG undertakes first step in the endorsement process for IFRS 4/IFRS 9 amendment
26 Jun, 2020
Yesterday, the International Accounting Standards Board (IASB) issued in addition to 'Amendments to IFRS 17' also 'Extension of the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4)'. While the two pronouncements result from the same project, publishing two documents instead of one will help the endorsement process for the amendments in the European Union.
Extension of the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4) defers the fixed expiry date of the exemption in IFRS 4 Insurance Contracts from applying IFRS 9 Financial Instruments from annual periods beginning on or after 1 January 2021 to annual periods beginning on or after 1 January 2023. Therefore, in order to be meaningful to European issuers, the amendment needs to be endorsed by the fourth quarter of 2020. As a first step, EFRAG has now published draft endorsement advice and in view of the urgency of the matter requests comments on it by 3 July 2020. As a next step, EFRAG intends to issue final endorsement advice on 7 July 2020.
Please click for the press release on the EFRAG website, which offer access to the draft endorsement advice and additional information.
