SASB consults on revised Framework

31 Aug 2020

The Sustainability Accounting Standards Board (SASB) has released proposed revisions to two of its documents — the SASB Conceptual Framework and the SASB Rules of Procedure — for consultation.

The revisions are designed to further clarify and explain the SASB’s approach to standard-setting, including its principles, processes, and practices. One of the reasons the SASB decided to revise these documents is that the Board is of the view that the existing documents do not reflect the global perspective of the SASB. The documents also contain an outdated mission statement as well as outdated assumptions, definitions, and data.

Comments are requested by 30 November 2020.

Please click for more information and access to the consultation documents on the SASB website.

EFRAG publishes draft endorsement advice on IBOR amendments

28 Aug 2020

EFRAG has published draft endorsement advice on 'Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)' published yesterday.

Given the urgency of the matter, EFRAG has published the draft endorsement advice with a very short consultation period (it already ends on 7 September).

EFRAG's overall preliminary assessment is that the amendments satisfy the criteria for endorsement for use in the EU and therefore recommends their endorsement. Please click to access the draft endorsement advice through the press release on the EFRAG website.

EFRAG also organises a public outreach event to collect stakeholders' views on the endorsement of the IASB's amendments on Monday 7 September 2020. 

Please click to access an updated EFRAG IFRS endorsement status report that reflects the publication of the draft endorsement advice letter.

Recording of the fourth webinar on PFS ED

28 Aug 2020

On 21 August 2020, the IASB offered an English language webinar summarising the Board’s detailed proposals for management performance measures.

A recording of the webinar is now available on YouTube.

Updated IPSAS-IFRS alignment dashboard

28 Aug 2020

The International Public Sector Accounting Standards Board (IPSASB), which develops the International Public Sector Accounting Standards (IPSAS) for financial reporting by governments and other public sector entities, has released an updated IPSAS-IFRS alignment dashboard showing how far individual IPSAS are aligned with corresponding IFRSs.

Please click to access the updated alignment dashboard prepared for the September 2020 IPSASB meeting on the IPSASB website.

Deloitte offers a summary of the provisions of all IPSAS in our IPSAS in your pocket publication.

Interview with new Board member

28 Aug 2020

Zach Gast from the United States joined the International Accounting Standards Board (IASB) at the beginning of August. The IASB has released an interview with him where he talks about his first few weeks on the Board and what he’s looking forward to in his new job.

Additional update to the IASB work plan — Analysis

28 Aug 2020

The IASB has once more updated its work plan. We have analysed the changes that have resulted since it was last revised on 11 August 2020. Among other things, all changes that were made in mid-August have been reversed.

Below is an analysis of all changes made to the work plan since our last analysis on 11 August 2020.

Standard-setting projects

  • No changes

Maintenance projects

  • 2019 Comprehensive review of the IFRS for SMEs — discussion of the feedback on the request for information is now expected in the fourth quarter of 2020 (previously no date given)
  • IBOR reform and its effects on financial reporting — Phase 2 — this project has been removed from the work plan since the IASB issued final amendments yesterday
  • Lease Liability in a Sale and Leaseback — the issuance of an exposure draft is now expected in the fourth quarter of 2020 (previously September 2020)

Research projects

  • Business Combinations under Common Control — a discussion paper is now expected in the fourth quarter of 2020 (previously September 2020)
  • Dynamic Risk Management — Core model outreach is now expected in the fourth quarter of 2020 (previously October 2020)
  • Post-implementation Review of IFRS 10, IFRS 11 and IFRS 12 — the request for information is now expected in the fourth quarter of 2020 (previously October 2020)

Other projects

  • Due Process Handbook Review — this project has been removed from the work plan since the IFRS Foundation published the revised handbook on 21 August 2020
  • IFRS Taxonomy Update — Common Practice (IAS 19 Employee Benefits) — a proposed IFRS Taxonomy Update is now expected in November 2020 (previously October 2020)
  • IFRS Taxonomy Update — COVID-19 Related Rent Concessions (Amendments to IFRS 16) — this project has been removed from the work plan since the IFRS Foundation published the final Taxonomy Update on 18 August 2020
  • IFRS Taxonomy Update — Interest Rate Benchmark Reform — Phase 2 — a proposed IFRS Taxonomy Update was published yesterday and feedback on the proposed update is expected to be discussed in October 2020

The above is a faithful comparison of the IASB work plan at 11 August 2020 and 28 August 2020. For access to the current IASB work plan at any time, please click here.

Recording of the Asia-Oceania virtual academic research seminar on primary financial statements

28 Aug 2020

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

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

A recording of the seminar (approx. two hours) is now available on YouTube.

IASB finalises phase 2 of its IBOR reform project

27 Aug 2020

The International Accounting Standards Board (IASB) has published 'Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)' with amendments that address issues that might affect financial reporting after the reform of an interest rate benchmark, including its replacement with alternative benchmark rates. The amendments are effective for annual periods beginning on or after 1 January 2021, with earlier application permitted.



Interbank offered rates (IBORs) are interest reference rates, such as LIBOR, EURIBOR and TIBOR, that represent the cost of obtaining unsecured funding, in a particular combination of currency and maturity and in a particular interbank term lending market. Recent market developments have brought into question the long-term viability of those benchmarks.

The IASB addressed the issues in a project split into two phases: Phase 1 dealt with pre-replacement issues (issues affecting financial reporting in the period before the replacement of an existing interest rate benchmark). This part of the project was concluded on 26 September 2019 by publishing Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7).

Phase 2 of the project dealt with replacement issues, therefore, the amendments published today address issues that might affect financial reporting when an existing interest rate benchmark is actually replaced. This part of the project has been concluded by the issuance of today's amendments.



The changes in Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) relate to the modification of financial assets, financial liabilities and lease liabilities, specific hedge accounting requirements, and disclosure requirements applying IFRS 7 to accompany the amendments regarding modifications and hedge accounting.

  • Modification of financial assets, financial liabilities and lease liabilities. The IASB introduces a practical expedient for modifications required by the reform (modifications required as a direct consequence of the IBOR reform and made on an economically equivalent basis). These modifications are accounted for by updating the effective interest rate. All other modifications are accounted for using the current IFRS requirements. A similar practical expedient is proposed for lessee accounting applying IFRS 16.
  • Hedge accounting requirements. Under the amendments, hedge accounting is not discontinued solely because of the IBOR reform. Hedging relationships (and related documentation) must be amended to reflect modifications to the hedged item, hedging instrument and hedged risk. Amended hedging relationships should meet all qualifying criteria to apply hedge accounting, including effectiveness requirements.
  • Disclosures. In order to allow users to understand the nature and extent of risks arising from the IBOR reform to which the entity is exposed to and how the entity manages those risks as well as the entity’s progress in transitioning from IBORs to alternative benchmark rates, and how the entity is managing this transition, the amendments require that an entity discloses information about
    • how the transition from interest rate benchmarks to alternative benchmark rates is managed, the progress made at the reporting date, and the risks arising from the transition;
    • quantitative information about non-derivative financial assets, non-derivative financial liabilities and derivatives that continue to reference interest rate benchmarks subject to the reform, disaggregated by significant interest rate benchmark;
    • to the extent that the IBOR reform has resulted in changes to an entity’s risk management strategy, a description of these changes and how is the entity managing those risks.

The IASB also amended IFRS 4 to require insurers that apply the temporary exemption from IFRS 9 to apply the amendments in accounting for modifications directly required by IBOR reform.

The IASB has come to the conclusion that the application of all proposed amendments is mandatory. It also assessed that the nature of the proposed amendments is such that they can only be applied to modifications of financial instruments and changes to hedging relationships that satisfy the relevant criteria and, as such, no specific end of application requirements needed to be specified.


Effective date and transition

The amendments are effective for annual periods beginning on or after 1 January 2021 and are to be applied retrospectively. Early application is permitted. Restatement of prior periods is not required, however, an entity may restate prior periods if, and only if, it is possible without the use of hindsight.


Additional information

Please click for:

In addition to the amendments, the IASB has also published a corresponding proposed IFRS Taxonomy update (comments requested by 28 September 2020).


Summary report of a field-test workshop with corporates on the IASB's PFS proposals

26 Aug 2020

EFRAG, in close coordination with the European national standard-setters and the IASB, is conducting field-tests of the IASB proposals included in the Exposure Draft ED/2019/7 'General Presentation and Disclosures' published in December 2019. A report is now available from a field-test workshop held held with corporates on 7 July 2020.

Participants of the field-test were asked to apply the IASB's proposals to their financial statements and answer a questionnaire from EFRAG and the IASB. The results were then discussed in the workshop.

Please click for additional information and the report from the workshop on the EFRAG website.

Results from a similar workshop with financial institutions were released in September 2020.

We comment on the IIRC consultation draft of its revised Framework

24 Aug 2020

In February 2020, the International Integrated Reporting Council (IIRC) launched the revision of the International <IR> Framework and called for market feedback on specific themes to inform the nature and direction of the revision. A consultation draft of the revised Framework was released for a 90 day comment period in May 2020.

In our comment letter on the consultation draft, we especially note two points:

  • The IIRC should especially focus on collaboration with framework and standard-setters to achieve a consolidated and comprehensive system of standards and to achieve connectivity between non-financial and financial reporting standards; and
  • the IIRC should support deeper engagement between the IIRC and the Trustees of the IFRS Foundation to create a clearer path towards a single system with connected oversight of standards for all forms of corporate reporting while also advocating for a broadening of the Trustees’ remit.

We also note that the subject of assurance has not been included in the consultation. We believe the IIRC should play an important role in enhancing the ‘assurance readiness’ of the Framework.

Please click to access out full comment letter here.

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