Are you ready for the new IFRS® accounting standards? Publication: Use of IFRS Standards around the world [PDF], How the IFRS Interpretations Committee helps support consistent application, Supporting materials for the IFRS for SMEs Standard, business combinations under common control, educational material to highlight how existing requirements in IFRS Standards, Consultation Paper on Sustainability Reporting. The International Financial Reporting Standards Foundation is a not-for-profit corporation incorporated in the State of Delaware, United States of America, with the Delaware Division of Companies (file no: 3353113), and is registered as an overseas company in England and Wales (reg no: FC023235). Amendments to IFRS 9, Financial Instruments, IAS 39, Financial Instruments: Recognition and Measurement, and IFRS 7, Financial Instruments: Disclosures, provide temporary but mandatory relief from specific hedge accounting requirements to address potential effects of the uncertainly in the lead up to IBOR reform (IBOR reform – Phase 1). By using this site you agree to our use of cookies. Trustees announce appointments to … Instead, onerous contracts are accounted for under specific Codification topics/subtopics depending on the type of contract involved. We undertook work on an urgent basis to amend IFRS Standards. And last, but certainly not the least, came IFRS 17, the much-anticipated new standard on insurance, which takes effect in 2021. You can view which cookies are used by viewing the details in our privacy policy. The IASB Board has relaxed IFRS 16 requirements for lessees accounting for rent concessions in lease agreements. Like you, we believe those who understand and apply IFRS will enjoy expanded career opportunities as its use is spreading around the world. Early adoption is permitted.Â, Unlike IFRS Standards, the guidance addressing long-duration contracts issued by insurers and reinsurers in US GAAP applies only to insurance entities. See the IASB Board work plan for other projects that are currently in progress. The effective date of ASC 606, Revenue from Contracts with Customers, has been extended by one year for all private companies that have not yet adopted the guidance, The effective date of ASC 842, Leases, for private companies and public not-for-profit entities has been extended by one year. The amendments to IFRS 16 are effective for annual periods beginning on or after June 1, 2020, with early adoption permitted. Responding quickly to the challenges of COVID-19, the International Accounting Standards Board (the IASB ® Board) deferred the effective dates for certain standards and amendments, and granted relief to lessees in accounting for rent concessions. © 2020 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. Join us for upcoming webcast events. In addition, the amendments clarify that the acquirer should not recognize a contingent asset at the acquisition date. In accordance with specific requirements in IAS 37. under both IFRS Standards and US GAAP – with major new standards on revenue, leases, financial instruments and insurance. Pozen is a financial executive and former executive chair of MFS Investment Management, Robinson currently serves as a trustee of the Financial Accounting Foundation, and Schipporeit is an independent management consultant and is a … For IFRS Standards, implementation efforts are complete, except for insurance. Standards (IFRS) and 2021 Updates +971 4 556 7171 Contents are subject to change. Early adoption is permitted. IFRS in your pocket is our popular guide to International Financial Reporting Standards (IFRS). The consultation paper presents the Board's preliminary views with the aim to reduce diversity in practice and to improve transparency and comparability in reporting these transactions. The deferral of the effective date of the new accounting standard IFRS 17 to 1 January 2023 has given insurers some breathing room to prepare for the transition, but for all there is still an enormous amount of work to do and the year ahead will be a very big year for the entire industry. The FASB has provided optional relief for a limited time to ease the accounting burden associated with transitioning away from reference rates in the area of contract modifications, hedge accounting and held-to-maturity debt securities. The Board has also proposed to amend IFRS 16 Leases by specifying how a company measures the lease liability in a sale and leaseback transaction. The IFRS Foundation has published educational material to highlight how existing requirements in IFRS Standards require companies to consider climate-related matters when their effect is material to the financial statements. This site uses cookies to provide you with a more responsive and personalised service. samples) before the related PPE is available for its intended use can no longer be deducted from the cost of PPE. rent deferral, forgiveness or other) either: Eligible COVID-19 related concessions are those where the changes to the lease resulting from and accompanying the concession do not result in a substantial increase to the rights of the lessor or the obligations of the lessee – e.g. leases for which the total payments required by the contract will be substantially the same as or less than the total payments required by the contract pre-concession. Ensure that you communicate their impact to your stakeholders! The new IFRS standards 2020 will bring about a massive change in the way businesses maintain their records.The International Financial Reporting Standards (IFRS) are accounting measures that are given by the International Accounting Standards Board (IASB). The effective date for the amendments for the current versus noncurrent classification of liabilities has been proposed to be extended by one year. Here we offer our latest thinking and top-of-mind resources. IFRS standards with mandatory effective date in 2019 or that can be early adopted. Amendments to IAS 1, Presentation of Financial Statements, clarify that the classification of liabilities as current or noncurrent is based solely on a company’s right to defer settlement at the reporting date. This was to ease the transition to the new interest rates for companies and to ensure that investors have the information they need about the progress a company has made in transitioning to the new … The standard should be applied retrospectively unless impracticable. US GAAP requires companies to perform an initial screen test as part of their assessment. New proposals2 have been issued to provide additional relief post-IBOR reform (IBOR reform – Phase 2), including relief related to debt and lease modifications, hedge accounting documentation, and disclosure requirements. The FASB has made significant changes to the accounting for long-duration contracts.5. Effective for annual periods beginning on or after January 1, 2021: IFRS 17 Insurance Contracts (New in 2017; replaces IFRS 4) In accordance with specific requirements in IFRS 17. In addition, other projects that were slated for completion in Q2 2020 will not be completed until later in 2020. Access the recordings and slides or find out more about the call for papers for the 2021 edition of this event. The amendments also clarify that the transfer of a company’s own equity instruments is regarded as settlement of a liability, unless it results from the exercise of a conversion option meeting the definition of an equity instrument. Early adoption is permitted unless otherwise stated. The comment periods for the following projects have been extended by three months: Exposure Draft, General Presentation and Disclosures, extended to September 30, 2020, Discussion Paper, Business Combinations – Disclosures, Goodwill and Impairment, extended to December 31, 2020. Instead, the company can elect to account for eligible COVID-19 related rent concessions, whatever their form (e.g. Proceeds from selling items (e.g. FASB staff guidance (hereinafter, the practical expedient) permits a company to forgo an evaluation of the enforceable rights and obligations of the original lease contract. For effective dates under IFRS Standards, see our Newly effective standards web tool. Find advance information for Standards MT Release 2021 in MyStandards. EY Homepage. IASB ® Board acknowledges the COVID-19 related challenges that stakeholders face in effectively implementing new and amended standards. of Professional Practice, KPMG US, Managing Director, Dept. The following summaries highlight new authoritative guidance issued by the International Accounting Standards Board (IASB Board), provide a high-level comparison to US GAAP, and identify resources for further reading. Top 10 differences between interim financial reporting requirements under IAS® 34 and ASC 270. Technical resources on the International Financial Reporting Standards (IFRS) – get started now with practical guidance, latest thinking and tools. The endorsement process of the European Union often leads to significant delays after the publication by the IASB. It aims to increase transparency and to reduce diversity in the accounting for insurance contracts. IASB® Board acknowledges the COVID-19 related challenges that stakeholders face in effectively implementing new and amended standards. In a recent Agenda Decision, the IFRS Interpretations Committee addressed the accounting for deferred tax in a scenario in which the recovery of the carrying amount of an asset results in multiple tax consequences which cannot be offset. These requirements differ from and are narrower than IFRS Standards.Â. An error has occurred, please try again later. In response to COVID-19, the IASB Board has made significant changes to its work plan, proposing to extend effective date comment deadlines and project timelines, and taking on new priority projects. The proposed amendment would improve the sale and leaseback requirements already in IFRS 16 by providing greater clarity for the company selling and leasing back an asset both at the date of transaction and subsequently. 1 January 2021 IFRS 17, ‘Insurance contracts’ Annual periods on or after 1 January 2021 Early adoption is permitted once IFRS 15 and IFRS 9 are applied. Also, catch up on the October episode, featuring Sue Lloyd and Technical Director Nili Shah talking about the Board's upcoming Agenda Consultation. In addition to useful summaries of all current Standards and Interpretations, it includes a vast array of information about global accounting standard setting. The new insurance standard IFRS 17 Insurance Contracts was issued in 2017 with the effective date of 1 January 2021, but IASB already makes steps to postpone its application till 2022. Standards/Interpretations Issued Not Yet Effective as at September 2020 IAS 8 requires that, when an entity has not applied a new Standard or Interpretation that has been issued but is not yet effective, the entity shall disclose: (a) this fact; and (b) known or reasonably estimable information relevant to assessing the possible Derecognition and modifications of financial liabilities, however, remains a complex area where other differences between IFRS Standards and US GAAP arise. Find out more detail in the full IASB Update for November. Improving business performance, turning risk and compliance into opportunities, developing strategies and enhancing value are at the core of what we do for leading organizations. In response to COVID-19, the effective date is pending a one-year deferral to 2023, to be confirmed by the IASB Board mid-2020. 19 February 2021: Update to Standards MT Release Guide 2021 (public) Update to Message Format Validation Rules 2021 (login required) Updates to documents published on 18 December 2020. Further information on these standards and amendments are provided in the section ‘New standards and amendments effective in 2018’. To ensure that this update in referencing does not change which assets and liabilities qualify for recognition in a business combination, or create new Day 2 gains or losses, the amendments introduce new exceptions to the recognition and measurement principles in IFRS 3. Find out what KPMG can do for your business. A company can choose to apply IFRS 17 before that date, but only if it also applies IFRS 9 Financial Instrumentsand IFRS 15 Revenue from Contracts with Customers. The effective date for preparers is annual periods beginning on or after January 1, 2020.1 The Conceptual Framework is typically used by preparers when developing accounting policies where no IFRS Standards apply to a particular transaction. Description: For accounting periods beginning on 1 January 2021, excluding changes not yet required. IFRS Foundation appoints Robert Pozen, Kenneth Robinson and Erhard Schipporeit as new Trustees The IFRS Foundation has appointed three Trustees and re-appointed seven, effective 1 January 2021. Our semi-annual outlook is a quick aid to help IFRS Standards preparers in the US keep track of imminent IFRS Standards changes and to assess the relevance to their financial statements. In March 2018, the IASB Board revised its Conceptual Framework. From the IFRS Institute – May 29, 2020. Chair of the IFRS Foundation Trustees Erkki Liikanen delivered the keynote speech at the UNCTAD Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting, introducing the Trustees' Consultation Paper on Sustainability Reporting. The 'International Financial Reporting Standards (IFRS) and 2020 Updates' course will help build the knowledge you need in IFRS for success in today's global business world. Company can elect to account for eligible COVID-19 related rent concessions in lease agreements Combinations Update... Derecognition and modifications of financial liabilities, however, only the revenue standard is fully effective in annual beginning. To Standards with mandatory effective date is January 1, 2024 significant changes to the accounting long-duration. Board have a general requirement to recognize onerous contracts are accounted for specific. 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