We select event dates that refer exclusively to official announcements and initiatives by iasb and european financial reporting advisory group efrag. Efrag arc council of the eu european parliament advice by end of 2018 vote 6 months scrutiny. The field test studies have shown that the volume of assets accounted for at fvpl is. Ifrs 9 financial instruments with ifrs 4 insurance contracts exposure draft summarises the significant issues caused by the misalignment of the effective dates between ifrs 9 and ifrs 4 phase 2.
Union program to support specific activities in the field of financial reporting and auditing for 20142020. Furthermore, in the context of the global nature of the insurance activities, esma. Ifrs 9 financial instruments was developed by the iasb and sets out the requirements for recognising and measuring financial assets, financial liabilities and. Efrags endorsement advice to the european commission on ifrs 9, financial. The follow up to earlier efrag fieldtests has produced limited quantitative data. October 2019 on interest rate benchmark reform amendments to ifrs 9, ias 39 and. Page 1 of 4 invitation to comment on efrags assessments on applying ifrs 9 financial instruments with ifrs 4 insurance contracts. Nov 27, 2009 efrag published draft endorsement advice on ifrs 9 financial instruments on 2 november, which supported endorsement. However, efrags fieldtest has shown that only a small portion of financial assets that are currently measured at amortised cost will have to be measured at fair value through profit or loss.
Ifrs 9 initial impact classification and measurement 18 impairment 20 staging assessment 20 other topics 27 impact of ifrs 9 including ifrs 9 transitional arrangements on capital requirements 28 other relevant aspects 29. Ifrs 9 financial instruments july 2014 sept 2015 oct 2016 2018. This fieldtest is carried out by efrag with the national standard setters anc. However, efrags field test has shown that only a small portion of financial assets that are currently measured at amortised cost will have to be measured at fair value through profit or loss. Efrag continued to request alignment of the effective dates of ifrs 9 and the new standard on insurance contracts on 7 january 2014, efrag issued its feedback statement on how efrag considered the comments provided by constituents.
Role of european banks in comment and endorsement process of. Therefore, this approach will still result in multiple significant changes in a short period of time and the need to effectively implement ifrs 9 twice once in 2018 and once when ifrs 4 phase 2 is implemented. We agree with efrags assessment on the need for a level playing field which can only be achieved. Iasbs exposure draft prepayment features with negative. Within this section you can also find projects that are the boards current areas of focus, ifrs interpretations committee projects and projects within the boards research programme. Efrag frequently updates the endorsement status report. Efrags and national standard setters future activities. It is also in the interests of large companies that approval of ifrs 16 is timely. Efrags draft letter on iasbs exposure draft ed201511. Field test classification and measurement, february 20. Ebf response to the efrag endorsement advice on ifrs 16 dear mr watchman, we understand that the actual effect of frs 16 on solvency, leverage and liquidity ratios. The iasbs applying ifrs 9 financial instruments with ifrs 4 insurance. Ifrs 9 financial instruments was developed by the iasb and sets out the requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy or sell nonfinancial items.
The european financial reporting advisory group efrag has issued a positive statement on ifrs 16, the new lease accounting standard. The international financial reporting standards foundation is a notforprofit corporation incorporated in the state of delaware, united states of america, with the delaware division of companies file no. Fifteen companies participated in both the ifrs 10 and the ifrs. Overall, the final endorsement statement on ifrs 16 from efrag states that. Amendments to ifrs 9 is now reflected in the endorsement status report. A report on the findings of the fieldtest on the iasb ed financial instruments. In july 2018, the cfo forum summarised the significant issues identified by its members during the efrag field test and in october 2018 proposed solutions to those issues through proposed track change edits to the standard. Issues current status 1 9 cfo forum finding in efrag letter amended by iasb scope of ifrs 17 loans that transfer insurance risk level of aggregation annual cohorts, profitability groups deferred to march.
Webcast efrag ifrs 17 simplified case study youtube. Efrag fieldtest on ifrs 10, ifrs 11 and ifrs 12 3 one of the main benefits of ifrs 10 was that it provided a single basis for consolidation and a uniform approach for all types of entities. Efrag also suggests the iasb to further articulate the link between mpms and ifrs 8 operating segments. Endorsement advice on ifrs 9 financial instruments efrag. National standard setters in europe are best placed to provide insight on specific fact patterns in their jurisdictions that create application issues, or that could be used to field test any potential solution being developed. Efrag and ifrs 16 defining the public good written by henk uunk.
On 23 april 2018 insurance europe organised an informative webcast for european insurance companies who must apply ifrs 17 as of 2021. The european financial reporting group efrag, along with the national standard setters nss anc, ascg, frc and the oic, is performing a fieldtest on how the new requirements in ifrs 9, as amended by exposure draft ed classification and measurement. Field test on the iasbs project primary financial statements. Ifrs 9 and the proposed amendments at the same time, for example entities subject to endorsement process or entities that early adopted ifrs 9. Efrag welcomes the iasbs efforts to define unusual income and expenses and to require entities to disclose such items in the notes. On 15 january 2014, efrag issued a field test report. The efrag has issued a feedback report regarding fieldtests on implementing ifrs 10, ifrs 11 and related disclosures in ifrs 12. The iasb considered that groups that do not meet the predominance test. The iasbs exposure draft applying ifrs 9 financial instruments with ifrs 4 insurance contracts.
The european financial reporting group efrag has issued a report containing the results of the field test conducted by the efrag and national standard setters nss anc, ascg, frc and the oic, on how the new requirements in ifrs 9, as amended by exposure draft ed classification and measurement. Comments should be submitted by december 2016by using the express your views page on efrag website or by clicking. Management intent criteria on the quality of accounting information conference paper pdf available december 2015 with 1,353 reads. Recognition and measurement the project was developed in phases, in part jointly with the fasb and has been. Purpose of the questionnaire 4 these field tests identified a number of concerns regarding the various proposals. The iasbs exposure draft applying ifrs 9 financial. The input was used by efrag in developing its draft endorsement advice for the european commission on ifrs 9 financial instruments.
The board always seeks public comment on draft ifrs standards before they become final, and these documents are indicated on the work plan. Endorsement advice on ifrs 9 financial instruments based on the requirements of the regulation ec no 16062002 of the european parliament and of the council on the application of international accounting standards we are pleased to provide our opinion on ifrs 9 financial instruments, which was issued by the iasb in july 2014. Efrag and the national standard setters anc, ascg, frc and oic invite companies to participate in a field test on how the transition from ias 39 to the new ifrs 9 requirements will affect classification and measurement of financial assets. An important test will be the forthcoming endorsement process of ifrs 17 insurance contracts which could have many potential implications to be assessed in terms of public good. If ifrs 9 also needs to be radically changed before the insurance contract standard becomes effective, it could postpone the insurance contract standard by many years. Should the iasb have started its due process on ifrs 16 with more basic field work.
Comment letter on ifrs 9 deferral insurance europe. Similarly to efrags view, in light of the diversity of. Efrag and nss conduct fieldtest on proposals to ifrs 9. However, on 12 november, the day that ifrs 9 was released, efrag said endorsement advice had been postponed. Formal participation in the efrags consultation processes. Ifrs 17 issued ifrs 17 start of comparative period ifrs 17 effective 1 january 2021 revised ifrs 9 classification from ifrs 17 implementation first ifrs 17 compliant financial statements unless ifrs 17 will be deferred based on the conditional deferral option.
Limited amendments to ifrs 9 can be downloaded here pdf. 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. The fieldtests were conducted by members of efrag and the european national standards setters. Efrag field test on ifrs 10, ifrs 11 and ifrs 12 3 one of the main benefits of ifrs 10 was that it provided a single basis for consolidation and a uniform approach for all types of entities. Efrag field test on ifrs 10, ifrs 11 and ifrs 12 2 efrag received 53 responses from 38 companies operating in various countries and industries.
Ifrs news quarter 2 20 7 grant thornton international responds to the iasbs proposals to amend ifrs 9s classification and measurement criteria in our letter we express support for the boards efforts to provide relief for certain types of financial instruments which would be classified at fair value under the current requirements of. Limited amendments to ifrs 9, would affect the current classification and measurement of financial assets. Efrag has issued a preliminary consultation document relating to the endorsement for use in the eu of ifrs 16 leases. Efrag board and teg meeting 11 january 2017 paper 0401, page 1 of 5. The european securities and markets authority esma has similarly supported the standards endorsement. The slides pdf and a summary of the discussion pdf on the day are included in the links. Outreach and field tests earlystage impact assessment final comment letter submitted to iasb d work plan based on. Efrag draft comment letter on the iasbs revised exposure draft. Page 1 of 97 olivier guersent director general, financial. We have also concluded that ifrs 16 is conducive to the european public good. It noted at the time that the positive advice could change if the draft standard changed or following feedback from stakeholders. The fieldtests were conducted by members of efrag and the european national standards. Endorsement of amendments to international financial reporting.
In its endorsement advice on ifrs 9, efrag assessed the effects on the insurance. Efrag board meeting 12 january 2017 paper 1001, page 1 of 7. Efrag applying ifrs 9 financial instruments with ifrs 4. The field test report was published on 24 july 20 and is available on efrags website. Ifrs 9 financial instruments financial reporting council. Fee comments on efrags draft omment letter on the iass ed applying ifrs 9 financial instruments with ifrs 4 insurance contracts dear mr marshall. Participants also expected more comprehensive information in the notes to the financial. With another ifrs standard, ifrs 15, to be reported starting january 1, 2018, one year ahead of the mandatory reporting date for ifrs 16, some large companies are seeking swift endorsement for ifrs 16 to benefit from early adoption. Efrag and national standard setters, in coordination with the iasb staff, performed a fieldtest to evaluate how these proposals would affect european companies applying ifrs. Ifrs news offers a summary of the more significant developments. Apr 24, 2018 on 23 april 2018 insurance europe organised an informative webcast for european insurance companies who must apply ifrs 17 as of 2021. Esmas response to efrag draft endorsement advice on ifrs 9.
Applying ifrs 9 financial instruments with ifrs 4 insurance contracts. Efrag acknowledges that, without the amendments, entities might fail the sppi test under ifrs 9 as it currently stands and accordingly measure these instruments at fair value through profit or loss. The basis of the endorsement procedure for ifrs accounting. Efrag has published a feedback report on the results of the preendorsement questionnaire on ifrs 9. Efrag research activities what are they trying to achieve. Ifrs 9 financial instruments is published by the international accounting standards board iasb. It provided companies and association with the opportunity to. Efrag is seeking the views of constituents, by 8 december 2016, on the specific matters raised in this document and any other issues considered relevant to efrags endorsement advice. International financial reporting standards, endorsement process, efrag, arc, sarg, ifrs 9, financial instruments. Efrags role is to advise the eu institutions eu endorsement efrag cnc portugal 5 february 2019 5 key features of eu endorsement endorsement criteria1 technical criteria conducive to european public good powers to modify ifrs standards can reject an ifrs standard, carveouti. Efrag preparing draft endorsement advice on ifrs 17 efrag has conducted significant outreach.
The standard replaces ias 39 financial instruments. This dual implementation would be confusing to users. Amendments to ifrs 4 comments should be submitted by december 2016 by using the express your views page on efrag website or by clicking here efrag has been asked by the european commission to. Limited amendments to ifrs 9, would affect the current classification and measurement of. The advisory group can only issue endorsement advice to the european commission when it is requested. The iasbs exposure draft applying ifrs 9 financial instruments with ifrs 4 insurance contracts dear mrs flores, the european securities and markets authority esma thanks you for the opportunity to contribute to the efrags due process regarding the iasbs exposure draft ed applying ifrs 9 financial instruments with ifrs 4. Most issues raised discussed by the board during dec 2018 feb 2019. Exposure draft ed20194 amendments to ifrs 17 exposure. Efrag serves the european public interest through a strong commitment to. 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. Level of participation efrag staff received 53 responses of which 27 related to the ifrs 10 field test and 26 to the ifrs 11 field test. Thirdly, it is not clear from the ed whether particular innovations have occurred in the field of prepayment features with negative compensation since the finalisation of ifrs 9 to. This was based on a near final draft of the standard. Single electronic format, including the outcome of the field testing.
Ifrs news quarter 2 20 6 how the expected credit losses model reflects the amount, timing and. He recalled that efrags first experience with impact analysis was the endorsement advice on ifrs 9. The iasbs proposals prior to the field test 18 ifrs 17 will permit two approaches for disaggregating changes in financial assumptions between profit or loss and oci for participating contracts that are not within the scope of the variable fee approach. Ias e valuation and the activities of the international financial reporting standards ifrs f oundation, the european financial reporting advisory group e frag a nd the public interest oversight board p iob5, having regard to its resolution of 6 october 2016 on international financial reporting standards. However, efrags endorsement advice on ifrs 9 shows that is difficult and sometimes even not possi ble despite all efforts in field testing. Efrag and the partner national standard setters wished to identify to what extent. Efrag report on implementation of ifrs 10, ifrs 11 and ifrs 12. Eu endorsement of the ifrs 9 standard on financial. Jun 17, 20 the european financial reporting group efrag has issued a report containing the results of the field test conducted by the efrag and national standard setters nss anc, ascg, frc and the oic, on how the new requirements in ifrs 9, as amended by exposure draft ed classification and measurement. Checking of of ifrs role of the efrag the european financial reporting advisory group efrag is a technical private law entity with international nonprofit organisation status under the belgian law created in 2001 by organisations representing european preparers, users and accounting professionals. We analyse the creation and development of the european financial reporting advisory group efrag, a key part of the eu endorsement mechanism for international financial reporting standards ifrs. Efrag is seeking the views of constituents, by 8 december 2016, on the specific matters raised in this document and any other issues considered relevant to efrag s endorsement advice. Author of the diploma thesis deals with the endorsement process of ifrs 9.
825 136 227 385 634 875 499 1521 152 955 1368 172 1557 1469 566 455 148 801 1015 484 97 97 641 1138 1567 506 1195 1365 1418 1622 21 47 134 1105 841 591 589 1439 1328 1025