This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

April

IASB holds meeting dedicated to COVID-19 issues

17 Apr 2020

In advance of its regular meeting next week, the IASB held a supplementary IASB meeting today to consider COVID-19-related matters: the Board's timelines in view of the COVID-19 pandemic and accounting for COVID-19-related rent concessions.

On the Board's timelines in view of the COVID-19 pandemic, the staff recommended that the Board:

All Board members agreed with the staff recommendations and also agreed that the exposure draft on delaying the effective date of the IAS 1 amendments should have a comment period of 30 days. The Board gave the permission to begin the balloting process for the exposure draft and no Board member intends to dissent.

On accounting for COVID-19-related rent concessions, the staff recommended that the Board amend IFRS 16 to provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. Entities applying the exemption would account for the changes as if they were not lease modifications. The exemption would have to be applied retrospectively but comparative figures would not be restated. A lessee would recognise any difference arising on initial application of the amendment in opening retained earnings (or other component of equity, as appropriate) in the annual reporting period that includes the date of initial application.

All Board members agreed with the staff recommendations and also agreed that the exemption would be effective immediately, when the final amendment is issued. The Board will ask the Trustees to approve a comment period of 14 days. The Board gave the permission to begin the balloting process for the exposure draft and no Board member intends to dissent. 

Note: The shortened comment periods for both exposure drafts were discussed in a DPOC call yesterday.

Please click to access the detailed notes taken by Deloitte observers for the entire meeting.

ESMA expands Q&A document on the implementation of its APM guidance

17 Apr 2020

In June 2015, the European Securities and Markets Authority (ESMA) published its final Guidelines on Alternative Performance Measures (APMs) for listed issuers that became effective in July 2016. Since then, ESMA has published several questions and answers on the guidelines to promote common supervisory approaches and practices in the implementation of them. A new question has now been added to the document on the use of APMs in the context of COVID-19.

The new question

  • highlights the main principles of the APM Guidelines;
  • encourages issuers to use caution when adjusting APMs and when including new APMs to address the impact of COVID-19; and
  • invites issuers to provide
    • narrative information regarding the modifications made, the assumptions used and the impact of COVID-19; and
    • information on measures taken or expected to be taken by issuers to address the impact that the COVID-19 outbreak may have in their operations and performance.

Please click to access the updated document on the ESMA website.

April 2020 IFRS Interpretations Committee meeting agenda posted

16 Apr 2020

The IFRS Interpretations Committee has posted the agenda for its next meeting, which will be held by video conference on 29 April 2020.

The Committee will discuss the following:

  • Administrative matters
  • IAS 12 — Multiple Tax Consequences of Recovering an Asset
  • Supply Chain Financing — Reverse Factoring
  • Work in progress

The full agenda for the meeting can be found here. We will post any updates to the agenda, our comprehensive pre-meeting summaries as well as observer notes from the meeting on this page as they become available.

DPOC discusses shortened comment periods for exposure drafts the IASB might decide to publish

16 Apr 2020

The Due Process Oversight Committee (DPOC) of the IFRS Foundation held a conference call today to discuss shortened comment letter periods for two exposure drafts the IASB might decide tomorrow to publish in the context of the COVID-19 pandemic.

At tomorrow's meeting, the IASB will discuss a staff recommendation that the IASB delay by one year the effective date of Classification of Liabilities as Current or Non-current (Amendments to IAS 1) to annual reporting periods beginning on or after 1 January 2023. The delay would require publishing an exposure draft and the staff recommend the changed effective date be exposed with a 30 day comment period. The DPOC followed the staff's explanation that this is a simple amendment and that stakeholders would not be unduly burdened in responding on an accelerated timeframe and would benefit from clarity being available rather sooner than later. All DPOC members voted to approve the 30-day comment period should the IASB decide to move forward with an exposure draft.

The staff also recommend that the IASB amend IFRS 16 Leases to provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. The staff recommend that the Board ask the Trustees to approve a 14-day comment period for the proposed amendment. (A comment period of less than 30 days cannot be approved by the DPOC alone, it requires approval of 75% of Trustees.) As the amendment would need to be finalised quickly so that it would benefit a large number of entities and also be available for entities with March 2020 year-ends (the staff think it would be possible to finalise an amendment to IFRS 16 by the end of May 2020), the DPOC agreed unanimously to recommend to the Trustees to approve a 14-day comment period should the IASB decide to move forward with an exposure draft. There will be a non-public Trustee meeting tomorrow.

Note: On 17 April 2020, the IFRS Foundation published a written report of the meeting, which is available here.

DPOC to hold conference call on 16 April

15 Apr 2020

The Due Process Oversight Committee (DPOC) of the IFRS Foundation has published an agenda and papers for a conference call to be held on 16 April 2020.

The DPOC will discuss:

  • Proposed shortened comment letter periods for potential exposure drafts on (1) Classification of Liabilities as Current or Non-current (Amendments to IAS 1) and (2) IFRS 16 Leases related to covid-19 related rent concessions.
  • Updated on the Due Process Handbook review.

Agenda papers for the meeting are available on the IASB's website.

IFRS Foundation seeks Trustee applications

15 Apr 2020

The IFRS Foundation announces that it is seeking applications for the role of Trustee.

The IFRS Foundation is seeking four Trustees: one from Europe, two from the Americas and one from the At Large category. Trustees’ responsibilities include oversight of the organisation in the public interest, its strategic direction, appointments to the Board, the IFRS Interpretations Committee and the IFRS Advisory Council, and ensuring the financing of the organisation and approving its budget. The role description notes:

Qualified candidates should have top-level experience in an organisation with an interest in accounting standards. They should demonstrate a firm commitment to serving the public interest, to the work of the Foundation and to the Board as a high quality global standard-setter. They should be financially knowledgeable and be able to meet the time commitment, which includes, but is not limited to, at least three three-day meetings each year. Trustees should have an understanding of, and be sensitive to, the challenges associated with the adoption and application of high quality global accounting standards developed for use in the world’s capital markets as well as to relevant current issues such as the impact of new technologies on corporate reporting, the development of non-financial reporting and changes in investors and markets demands.

Please click to access the press release on the IASB website.

Agenda and pre-meeting summaries available for the April 2020 IASB supplementary meeting

14 Apr 2020

The IASB is holding a supplementary IASB meeting to consider COVID-19-related matters on Friday 17 April 2020.

Accounting for COVID-19-related rent concession: The staff recommend that the Board amend IFRS 16 to provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. Entities applying the exemption would account for the changes as if they were not lease modifications. The exemption would have to be applied retrospectively but comparative figures would not be restated. A lessee would recognise any difference arising on initial application of the amendment in opening retained earnings (or other component of equity, as appropriate) in the annual reporting period that includes the date of initial application. The exemption would be effective immediately, when the final amendment is issued.

The staff also recommend that the Board ask the Trustees to approve a 14-day comment period for the proposed amendment. The staff think it would be possible to finalise an amendment to IFRS 16 by the end of May 2020, if the Board agrees with its recommendations and the Trustees approve a 14-day comment period.

Board timelines, impact of COVID-19: The staff set out proposed changes to project timelines, as a result of the COVID-19 pandemic. Some projects continue to be high priority despite the unprecedented global crisis including the project on IBOR Phase 2 and the project on amendments to IFRS 17.

The staff recommend that the Board:

  • (a) delay by one year the effective date of Classification of Liabilities as Current or Non-current (Amendments to IAS 1) to annual reporting periods beginning on or after 1 January 2023.
  • (b) extend the consultation period by (approximately) three months for the following consultation documents:
    • the Exposure Draft General Presentation and Disclosures;
    • the Request for Information Comprehensive Review of the IFRS for SMEs Standard; and
    • the Discussion Paper Business Combinations—Disclosures, Goodwill and Impairment.

The publication dates of forthcoming major consultation documents planned for 2020 will also be delayed.

For the delay in the IAS 1 amendment the staff recommend the changed effective date be exposed with a 30 day comment period.

The full agenda for the meeting and our pre-meet­ing summaries can be found here. We will update this page for any changes to the agenda and our Deloitte observer notes from the meeting as they become available.

IASB publishes COVID-19 guidance on IFRS 16, will discuss COVID-19 implications in supplementary meeting

11 Apr 2020

The International Accounting Standards Board (IASB) has published a document responding to questions regarding the application of IFRS 16 'Leases' during the period of enhanced economic uncertainty arising from the COVID-19 pandemic. In a supplementary meeting, the IASB will discuss the matter further and will also consider effective dates, consultations periods and publication dates in general.

Similar to the guidance on IFRS 9 published in March, the new guidance on IFRS 16 Leases is intended to support the consistent application of requirements in IFRSs. Therefore, it highlights requirements within IFRS 16 and other IFRSs that are relevant for companies considering how to account for rent concessions granted as a result of the covid-19 pandemic; it does not change, remove nor add to, the requirements of IFRS 16. Please click to access the document on the IASB website. The IASB has also announced that the issue will be discussed by the IASB in a supplementary meeting on 17 April.

At the meeting, the IASB will also discuss:

The Appendix A of agenda paper 32 for the meeting offers a tabular overview over the proposed changes to consultation document timelines.

April 2020 IASB meeting agenda posted

10 Apr 2020

The IASB has posted the agenda for its next meeting, which will be held via videoconference on 21–23 April 2020. There are seven topics on the agenda.

The Board will discuss the following:

  • Management Commentary
  • Financial instruments with characteristics of equity
  • Maintenance and consistent application
  • Post-implementation review of IFRS 10–12
  • Disclosure Initiative—Subsidiaries that are SMEs
  • Amendments to IFRS 17 Insurance Contracts (oral update)
  • SME Standard review and update

The full agenda for the meeting can be found here. We will post any updates to the agenda, our comprehensive pre-meeting summaries as well as observer notes from the meeting on this page as they become available.

Deloitte launches new webcast series on accounting considerations related to COVID-19

10 Apr 2020

The Coronavirus Disease 2019 (COVID-19) pandemic is affecting economic and financial markets; virtually all industries are facing challenges associated with the economic conditions resulting from efforts to address it. We have set up a series of webcasts that discusses certain key IFRS accounting considerations related to conditions that may result from the COVID-19 pandemic.

The significance of the individual issues discussed in the webcasts will vary by industry and by entity, but we believe that the topics covered will be the most pervasive and difficult to address. The first webcast in the series discusses judgements and estimates, events after the reporting period and non-financial assets within the scope of IAS 36. Further webcasts will be made available over time.

Please click here to find an overview of the webcasts that have been published so far.

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.