February

CMAC seeks members

01 Feb 2021

The Capital Markets Advisory Committee (CMAC) is seeking new members and welcomes applications from analysts and investors from all over the world.

New members will start on 1 January 2022 for a term of three years, renewable once for a further three years. For more in­for­ma­tion, see the press release on the IASB website.

Pre-meeting summary for the February 2020 IASB supplementary meeting

01 Feb 2021

The IASB is meeting on Thursday 4 February 2021, by video conference. We have posted our pre-meeting summary for the meeting that allow you to follow the IASB’s decision making more closely. We summarised the agenda paper made available by the IASB staff and point out the main issues to be discussed by the IASB and the staff recommendations.

IFRS 16 and COVID-19: The amendments to IFRS 16 the IASB made in relation to rent concessions and COVID-19 provided a practical expedient that applied to rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2021. The staff is recommending that the IASB extend that to 30 June 2022. The staff recommend retrospective application, but note that for a lessee that has applied the initial expedient, it is possible that they may be required to reverse lease modification accounting for rent concessions that did not qualify because of the original time limit. If the IASB approves a 14-day comment period the staff think they can publish final amendments by the end of March 2021.

Our pre-meet­ing summary is available on our February supplementary meeting notes page and will be sup­ple­mented with our popular meeting notes after the meeting.

IVSC paper on challenges to market value

01 Feb 2021

The International Valuation Standards Council (IVSC) has published a perspectives paper 'Challenges to Market Value' that looks at the challenges in relation to the availability of market information in a pandemic world.

The paper notes that the current coronavirus epidemic has created a significant layer of uncertainty which has permeated all markets. While this is not necessarily just confined to the basis of market value, however, it still raises its own specific challenges:

  • How does the valuer quantify market value with a lack of market comparable information in the new COVID-19 world?
  • Where market comparable information is available, have the parties ‘acted knowledgeably, prudently and without compulsion’?
  • Does a pandemic environment enable parties to undertake ‘proper marketing’ or do sales that are witnessed in the early stages of such an event represent an environment comprised of overly willing sellers and opportunistic buyers that is more aligned with a liquidation market?

Please click to access the perspectives paper on the IVSC website.

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