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Agenda for the July 2020 ITCG meeting

21 Jul 2020

The agenda is available for the next meeting of the IFRS Taxonomy Consultative Group (ITCG), which will be a virtual meeting on 28 July 2020.

The agenda is sum­marised below:

Tuesday 28 July 2020 (12:00-12:50)

  • IFRS Taxonomy content: Tagging comparative information reported in accordance with a superseded IFRS Standard
  • Technical updates to the IFRS Taxonomy

Agenda papers for this meeting are available on the IASB website.

Asia-Oceania virtual academic research seminar on primary financial statements

16 Jul 2020

On 21 August 2020, the International Accounting Standards Board (IASB) in conjunction with the Australian Accounting Standards Board (AASB) will hold a virtual research seminar for academics across the Asia-Oceania region. The seminar will provide an overview of the IASB’s 'General Presentation and Disclosures' exposure draft (ED) and relevant academic literature.

The purpose of the session is to obtain feedback from academics on the proposals in the December 2019 ED and to discuss relevant academic evidence.

Please click for more information on the AASB website.

Consolidated version of IFRS 17 incorporating the June 2020 amendments

14 Jul 2020

On 25 June 2020, the International Accounting Standards Board (IASB) issued 'Amendments to IFRS 17' to address concerns and implementation challenges that were identified after IFRS 17 'Insurance Contracts' was published in 2017.

A consolidated version of IFRS 17 incorporating the June 2020 amendments is now available freely on the IASB website. The amendments are effective for annual periods beginning on or after 1 January 2023 with earlier application permitted.

Please click to access the consolidated version of IFRS 17 on the IASB website.

COVID-19 accounting tool for governments

22 Jul 2020

The International Federation of Accountants (IFAC), the Zurich University of Applied Science (ZHAW), and the International Public Sector Accounting Standards Board (IPSASB) have published a tool for governments and other interested stakeholders to apply best practices in public sector accounting when analysing COVID-19-related intervention programs.

The COVID-19 pandemic led governments to deploy significant interventions to support individuals, businesses, the monetary system, and specific sectors, including healthcare. In view of the unprecedented scale of these interventions there is an urgent need to understand their full current and ongoing impacts on public finances as high-quality financial information enhances government decision-making and supports better outcomes for citizens over the medium and longer-term.

The new COVID-19 Intervention Assessment Tool includes:

  • A step-by-step process and assessment tool to help assess, evaluate and inform various types of government interventions related to the pandemic; and
  • An overview of the way it can support the pathway to accrual International Public Sector Accounting Standards (IPSAS) for governments.

Please click for more information on the IPSASB website.

EFRAG to undertake preparatory work for possible EU non-financial reporting standards

03 Jul 2020

In February 2020, the European Commission (EC) launched an initiative to review the European Non-Financial Reporting Directive (NFRD). One of the aspects of the review looks at whether to mandate the use of a common set of non-financial reporting standards and whether these should be especially developed European standards. The EC has now sent two letters to the European Financial Reporting Advisory Group (EFRAG) asking it to undertake preparatory work for the possible elaboration of such standards.

The first letter tasks the Steering Group of the European Reporting Lab with appointing a multi-stakeholder project task force to carry out the preparatory work for possible standards. The second letter is directed ad personam to the EFRAG Board President to consider a possible need for changes to the governance and financing of EFRAG if it were to be tasked with the development of European non-financial reporting standards in a revised NFRD. 

The press release on the EFRAG website offers access to both letters.

EFRAG is looking for new TEG members

09 Jul 2020

The European Financial Reporting Advisory Group (EFRAG) is inviting applications for its Technical Expert Group (TEG).

Five of the sixteen members of EFRAG TEG will reach the end of their current term of appointment on 31 March 2021 and two of the country liaison members will reach the end of their current term on 30 November 2020. Not all of the members are eligible for reappointment.

EFRAG welcomes all applications but in particular seeks candidates with an insurance background or user background.

For more information, please see the press release on the EFRAG website.

Please note that the application date has been extended to 2 November 2020.

EFRAG moves quickly on endorsement advice on IFRS 4/IFRS 9 amendments

07 Jul 2020

Following yesterday afternoon's EFRAG Board meeting, the European Financial Reporting Advisory Group (EFRAG) has issued final endorsement advice on ' Extension of the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4)'.

In keeping with the deferral of the effective date of IFRS 17 by two years to annual periods beginning on or after 1 January 2023, the amendments change the fixed expiry date for the temporary exemption in IFRS 4 Insurance Contracts from applying IFRS 9 Financial Instruments, so that entities would be required to apply IFRS 9 for annual periods beginning on or after 1 January 2023.

Final endorsement of the amendments is currently expected in the fourth quarter of 2020 - in time for European companies to benefit from the deferral.

Please click to access the final endorsement advice letter and a corresponding press release on the EFRAG website. EFRAG has also updated its IFRS endorsement status report to reflect the development.

EFRAG publishes discussion paper on crypto-assets (liabilities)

20 Jul 2020

The European Financial Reporting Advisory Group (EFRAG) has published a discussion paper (DP) 'Accounting for Crypto-Assets (Liabilities): Holder and Issuer Perspective'. The DP provides possible approaches to address the gaps in crypto-assets (liabilities) requirements.

Specifically, the DP considers three possible approaches the IASB could take:

  • No amendments to existing IFRS requirements.
  • Amend and/or clarify existing IFRS requirements.
  • A new Standard on crypto-assets (liabilities) or a broader category of digital assets (liabilities).

The DP and a press release are available on the EFRAG website. Comments are due by 31 July 2021.

ESMA statement on supervisory coordination on accounting for COVID-19-related rent concessions

21 Jul 2020

The European Securities and Markets Authority (ESMA) has issued a public statement recommending coordination of supervisory action with regards to issuers’ accounting for COVID-19-related rent concessions.

On 28 May 2020, the International Accounting Standards Board (IASB) published Covid-19-Related Rent Concessions (Amendment to IFRS 16) amending the standard to provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. The amendment has not been endorsed for use in the European Union yet, so the relief is not available to European issuers. While the amendment was given positive endorsement advice by both EFRAG and ARC speedily, the European Parliament and the Council of the European Union now have three months to object, which means that final endorsement could be delayed to October 2020, unless Parliament and Council issue no objection notices earlier than that.

ESMA's statement now states that provided that the Parliament and the Council do not object to the endorsement of the amendment, ESMA recommends that National Competent Authorities do not prioritise supervisory actions on the application of the lease modification requirements contained in IFRS 16 as currently endorsed by the EU to COVID-19-related lease modifications which would fall within the scope of the IFRS 16 amendment. This coordination of supervisory actions applies exceptionally for financial periods ending on or before 31 July 2020 and as long as issuers account for those transactions on the basis of the IFRS 16 amendment.

Please click to access the public statement on the ESMA website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.