Ifrs 16 leases draft endorsement advice note to constituents. In 2016, efrag s work was focused on endorsement advice on two major standards. Efrag has therefore concluded that ifrs 9 would not be contrary to the true and fair view principle. Amendments to ifrs 4 and has submitted its endorsement advice letter to the. Efrag supports the proposal to permit entities, on portfolio level, to either apply ifrs 17 or ifrs 9 to insurance contracts that provide insurance coverage only for the settlement of the policyholders obligation created by the contract. The endorsement by the european commission of ifrs 15 revenue from contracts with customers including amendments to ifrs 15. Mar 06, 2015 joint letter to efrag on ifrs 9 endorsement come constituents are asking for a swift euendorsement process for international financial reporting standards ifrs 9 as issued by the international accounting standards board iasb. This assessment has been carried out considering ifrs 9 on a standalone basis. Efrag discussion paper equity instruments impairment and. The basis for our conclusions is provided as appendix 2 to this letter. In both cases, efrag provided its final endorsement advice in 2017.
Ifrs 9 compared to ias 39 5 efrags initial assessment of ifrs 9, and particularly with respect to the impairment. Comments should be submitted by december 2016by using the express your views page on efrag website or by clicking. Dec, 2016 european savings and retail banking group esbg members are most appreciative of the opportunity afforded to them by the european financial reporting advisory group efrag to comment on their draft endorsement advice regarding the application of ifrs 9 financial instruments with ifrs 4 insurance contracts amendments to ifrs 4. Lapff believes that efrag has been lacking objective and transparent legal criteria for assessing the true and fair view principle of the law for ifrs endorsement and as a result. Dec 31, 2018 1 ifrs adopted by the european union 31 december 2018 1. The request specifically asked efrag to address potential issues around economic competition and level playing fields within the eu financial service sector that may be raised by the amendments, notably by the exemption from ifrs 9. In july 2014, the iasb issued the completed version of ifrs 9 financial. Efrag understands that in some countries the insurance. Ifrs 16 leases draft endorsement advice note to constituents efrag has been asked by the european commission to provide it with advice and supporting material on the endorsement of ifrs 16 leases. In order to do so, efrag has been carrying out an assessment of the amendments against the technical criteria for endorsement set out in regulation ec no 16062002 and has also been assessing the. Ifrs 9 is effective for annual reporting periods beginning on or after 1 january 2018. The basis of the endorsement procedure for ifrs accounting. Letter to efrag board on ifrs 9 endorsement european banking. International financial reporting standards ifrs i.
The european financial reporting advisory group efrag has updated its report showing the status of endorsement, under the eu accounting regulation, of each ifrs, including standards, interpretations, and amendments. Efrag applying ifrs 9 financial instruments with ifrs 4. Question 1a credit cards that provide insurance coverage. Efrags endorsement advice final eu endorsement iasb effective date ifrs 15 revenue from contracts with customers may 2014 march 2015 sept 2016 2018 ifrs 9 financial instruments july 2014 sept 2015 oct 2016 2018 ifrs 16 leases jan 2016 march 2017 oct 2017 2019 ifrs 17 insurance contracts may 2017 tbc tbc 2022 efrag cnc portugal 5 february. Fee supports a swift endorsement of ifrs 9 in the eu, and endorses international solutions to address issues arising from the nonalignment of the effective date of ifrs 9 and the future standard on insurance contracts for institutions with significant insurance activities. Stakeholders were asked to comment on all aspects of efrags assessment supporting its preliminary conclusions by 30. Efrag s final endorsement advice recommended the amendments to ifrs 4 for endorsement efrag, 2017. Published international financial reporting standards the table below provides an overview of the status of the european union eu endorsement process of ifrs standards, interpretations and amendments issued by.
We also note that the evidence presented in efrags report regarding the anticipated effects of the requirements in ifrs 9 for fvoci investments is not conclusive on whether, and on the extent to which, ifrs 9 is expected to trigger a significant change in the asset allocation of the surveyed entities. Webcast efrag ifrs 17 simplified case study youtube. In their submissions to the european financial reporting advisory group efrag as part of the endorsement process, the european banking authority eba and the european central bank ecb have supported endorsement of ifrs 9 with consideration of the assumed benefits of the expectedloss model for financial stability. Exposure draft ed20194 amendments to ifrs 17 exposure. Efrag assesses that the amendments meet all technical endorsement criteria of the ias regulation. Efrag has submitted its endorsement advice relating to ifrs 9 for use in the european. The ebas views on the adoption of ifrs 9 financial instruments. Endorsement criteria regulation eu 16062002 ias regulation introduced the endorsement of ias ifrs and related standard interpretations committeeinternational financial reporting interpretations committee interpretations sicifric in the eu. Endorsement advice on ifrs 9 financial instruments efrag. Overall, the final endorsement statement on ifrs 16 from efrag states that. Commission report on the activities of the ifrs foundation. Applying ifrs 9 with ifrs 4 insurance contracts phase i phase ii implementation effective source. Click to download the endorsement status report as of 8 december 2011 pdf 195k.
The objective of issuing ifrs 9 is to replace ias 39 financial instruments. Amendments to ifrs 3 business combinations applicable for annual periods beginning on or after 1 january 2020, but not yet endorsed in the eu amendments to ifrs 9, ias 39 and ifrs 7 interest rate benchmark reform applicable for annual periods beginning on or after 1 january 2020. Appendix 1 to this letter provides a summary of the changes introduced by ifrs 9. Interest rate benchmark reform amendments to ifrs 9, ias 39 and ifrs 7 issued on 26 september 2019. Lapff has responded to the draft endorsement advice by the european financial reporting advisory group efrag on the proposed replacement of euias 39 with ifrs 9. Efrag has submitted its endorsement advice relating to ifrs 9 for use in the european union and european economic area. In order to provide our endorsement advice as you have requested, we have first assessed whether ifrs 9 would meet the technical criteria for endorsement, i.
Ifrs 9 invitation to comment on efrags assessments page 2 of 85 of financial assets and hedge accounting, whilst bringing different but still relevant accounting for financial instruments other than basic lending instruments. Eu endorsement of the ifrs 9 standard on financial. Apr 24, 2018 webcast efrag ifrs 17 simplified case study. Efragtegs opinions will whether the standard to be endorsed assess mplies with co. Ifrs should be endorsed in europe including whether conducive to the.
Dec 01, 2015 in their submissions to the european financial reporting advisory group efrag as part of the endorsement process, the european banking authority eba and european central bank ecb have supported endorsement of ifrs 9 with consideration of the assumed benefits of the expectedloss model for financial stability. Preparers will need time to implement the new requirements but. All publications developed by or related to efrag can be accessed b elow. Joint letter to efrag on ifrs 9 endorsement come constituents are asking for a swift euendorsement process for international financial reporting standards ifrs 9 as issued by the international accounting standards board iasb. The european financial reporting advisory group efrag has issued a positive statement on ifrs 16, the new lease accounting standard. Efrag suggests quick endorsement of ifrs 9 amendments. Applying ifrs 9 financial instruments with ifrs 4 insurance contracts. Oct 18, 2017 the european financial reporting advisory group efrag has issued positive draft endorsement advice on prepayment features with negative compensation amendments to ifrs 9, not even a week after the amendments were issued by the iasb. Efrag has established a technical expert group teg, max. Interpreting the european unions ifrs endorsement criteria. In section 6, we conclude by discuss ing the implicat ions of our interpretation of the endorsement criteria for the political decision in the case of ifrs 9.
The eu endorsement process position as at 21 february 2017 2 iasb ifrs ic documents that have been endorsed the iasb ifrs ic documents that have been endorsed, as well as their effective dates of application in the european union, their dates of endorsement and of publication in the official journal are set out in the table below. Efrags preliminary assessment is that ifrs 9 satisfies the criteria for endorsement for use in the eu and it therefore recommends its endorsement. The european financial reporting advisory group efrag has published an updated endorsement status report indicating the eu endorsement of ifrs 9 financial instruments is now expected in the second half of 2016. Efrag has been carrying out an assessment of ifrs 16 against the criteria for endorsement set out in regulation ec. Efrag assesses that the amendments meet all technical endorsement criteria of the ias regulation and are conducive to the european public good.
Amendments to ifrs 17 this letter is intended to contribute. The research proactive activities have triggered the publication of research documents and discussion or position papers. The endorsement advice on ifrs 16 leases was supported by a robust impact analysis. Efrag call for comments on draft endorsement advice on ifrs 9. E of ifrs 9 allows a regulated interest rate as a proxy for the time value of the money in doing the sppi test, under certain conditions. A summary of ifrs 9 is set out in appendix 1 to the draft endorsement advice letter. Ifrs 9 financial instruments was developed by the iasb and sets out the. Endorsement of amendments to international financial reporting. We have then assessed whether ifrs 9 would be conducive to the european public good. In order to become binding law in the eu, they must be endorsed in a specific procedure.
Ifrs standards and interpretations as adopted by the european. The endorsement by the european commission of ifrs 9 financial instruments is now reflected in the efrag endorsement status report. The information shown is our current best estimate of the latest date for publication or endorsement, assuming endorsement is to occur. Ifrs insurance contracts standard the need for change and the history of the project 20182019 trg 4 meetings 2020 eu endorsement draft 1h 2020 ifrs 17 and ifrs 4 insurance contracts amendments 2h 2020 eu endorsement efrag and arc 2021 transition.
980 388 1487 77 719 594 1389 638 529 982 294 552 1110 1019 873 1080 282 1263 902 887 439 1160 1452 977 249 1577 111 191 164 1044 1112 201 101 654 201