The Amendment addresses the accounting mismatches between insurance contract liabilities and financial assets arising in the comparative information presented on initial application of IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments and improve the usefulness of the comparative information. The Amendment relates only to the presentation of comparative information and becomes effective on initial application of IFRS 17.

EFRAG recommends the endorsement of the Amendment. EFRAG assesses that the Amendment meets the technical endorsement criteria of the IAS Regulation and is conducive to the Euro​​​pean public good.

A press release and the endorsement advice letter to the European Commission are available on the EFRAG website. EFRAG has also updated its endorsement status report.

Following the publication of EFRAG's draft comment letters on the IASB's Exposure Drafts ED/2021/9 Non-Current Liabilities with Covenants and ED/2021/10 Supplier Finance Arrangements, EFRAG has prepared separate questionnaires to collect constituents views as part of its consultation process. 

The feedback on the questionnaires will contribute to form EFRAG's final position on the IASB's proposals on these two projects. Participants are asked to complete the online questionnaires ​by 4 March 2022​.

Further information and links to the surveys can be found on the EFRAG website.

The IFCG discussed the following:

• Post-implementation of IFRS 9
• IFRS 17 and Takaful
• IASB Technical Update

For more in­for­ma­tion, see the summary on the IASB’s website.

This marks the completion of the first of two organisations to consolidate into the IFRS Foundation with the other, Value Reporting Foundation, expected to consolidate by June 2022. Also noted was that the CDSB Framework, recent technical guidance on water, biodiversity and social disclosures, and other resources will remain applicable until the ISSB publishes its IFRS Sustainability Disclosure Standards.

For more information, see the press release on the IFRS Foundation’s website.

EFRAG published its Final Comment Letter in December 2021. 

The Feedback Statement summarises constituent's feedback on EFRAG's draft comment letter relating to the proposals in the ED and explains how this feedback was considered by EFRAG in reaching a final position on the proposals.

A press release and the feedback statement are available on the EFRAG website.

The meeting focused on ISSB nominations. The Trustees received a report related to the recently completed search for a Vice-Chair of the ISSB and the search for ISSB members. The Chair of the ISSB also provided an update on appointments planned for the role of Special Advisor to the ISSB Chair.

For more in­for­ma­tion, see the full summary on the IFRS Foun­da­tion Trustees’ meeting on the IASB’s website.

The ED would permit eligible subsidiaries that are small and medium-sized entities (SMEs) to apply IFRSs but with reduced disclosure requirements.

We agree with the objective of the draft Standard which responds to requests from stakeholders and expect that the draft Standard will significantly reduce the cost of preparing financial statements applying IFRS Standards for subsidiaries of parents that report using these standards.  We agree that the Standard should only be available to subsidiaries that do not have public accountability. However, in addition to the requirement to meet the definition of an entity without public accountability proposed in the draft Standard, we suggest that an entity would be permitted to apply the draft Standard only if all of its owners, including those not otherwise entitled to vote, and outsiders for which the entity holds assets in a fiduciary capacity have been informed about, and do not object to, the entity applying the draft Standard. We also agree with the proposal to limit the scope to subsidiaries of a parent that produces consolidated

financial statements available for public use that comply with IFRS Standards and with the approach taken to developing the proposed disclosure requirements using the IFRS for SMEs Standard as a starting point and generally agree with the proposed disclosures that result from the application of this approach.

Please click to download our full comment letter.

High­lights of the podcast include dis­cus­sions on: 

• Updates and on goodwill and impairment and management commentary projects;
• Feedback summary on the lack of exchangeability project;
• Developments in the proposed taxonomy update for IFRS 17 amendments;
• Stakeholder feedback on business combinations under common control;
• Deliberations on the primary financial statements;
• Role of post-implementation reviews.

The podcast can be accessed through the press release on the IASB website.

Please click to view the detailed notes taken by Deloitte observers for the IASB meeting.

Additionally, the FRC has issued revised editions of the Foreword to Accounting Standards and Overview of the financial reporting framework that reflect developments in accounting standards, legislation and regulation.

The FRC has issued the following documents:

1. Foreword to Accounting Standards;
2. Overview of the financial reporting framework;
3. FRS 101 Reduced Disclosure Framework;
4. FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland;
5. FRS 103 Insurance Contracts;
6. Implementation Guidance to accompany FRS 103 Insurance Contracts;
7. FRS 104 Interim Financial Reporting; and
8. FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime.

A new edition of FRS 100 will also be issued following changes to this standard expected later this year.

The press release and links to the revised editions are available on the FRC website. 

EFRAG considers that the combination of the cash flow characteristics of the assets together with the assessment of the entity's business model has proved to generally provide an appropriate basis to align the measurement of financial instruments with how they are managed by the entity.  

However in its final comment letter, EFRAG notes a number of issues that are considered to be prevalent in Europe and might deserve standard-setting activities. EFRAG believes the following issues should be of highest priority:

• Application of the SPPI test to sustainable finance products which EFRAG believes should be addressed urgently as a separate issue due to its expected pervasive effect in Europe.
• The absence of recycling for FVOCI equity instruments.
• The treatment of equity-type instruments, for example mutual funds and puttable instruments.

The press release and the final comment letter are available on the EFRAG website.