Ebf response to the efrag endorsement advice on ifrs 16. Endorsement of the amendments to ifrs 10, ifrs 12 and ias. Ten years later, in the same year when the us sec has not. Efragifrs foundation conference on the move towards global accounting standards. Effect study prepared by the european financial reporting advisory group efrag attachment 2. Definition of a business issued on 22 october 2018 1 january 2020 28 march 2019 expected in 2019 expected in 2019. Overall, the final endorsement statement on ifrs 16 from efrag states that. On 15 september 2015, efrag submitted to the european commission its endorsement advice on ifrs 9. The fieldtests were conducted by members of efrag and the european national standards setters. Information used in efrags endorsement advice reports will be presented in such a way that no individual company or person can be identified. Potential impact of ifrs 16 on smes 7 efrag has assessed how ifrs 16 could affect small and mediumsized entities smes appendix 3, paragraphs 89127. Executive summary ifrs 17 endorsement in europe 2 the actuarial association of europe represents c. The basis of the endorsement procedure for ifrs accounting.
Effects study prepared by the european financial reporting advisory group efrag the costs and benefits of implementing the investment entities amendments to ifrs 10, ifrs 12 and ias 27 introduction 1 following discussions between the various parties involved in the eu endorsement. Endorsement of consolidated financial statements, joint. Endorsement advice on ifrs 9 financial instruments page 2 of 97 further, the improvements in accounting for the impairment of financial assets meet the g20 request in the wake of the financial crisis to implement a forwardlooking impairment model that leads to more timely recognition of expected credit losses. Consolidation and related disclosures efrag private consultation page 2 7 the results of this consultation will be considered by efrag in drafting its endorsement advice and effect study report on the new standards. 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. 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. It has a staff of around 150 people and has its main office in london and a smaller asiaoceania office in tokyo.
Efrag assesses that the amendments meet all technical endorsement criteria of the ias regulation and are conducive to the european public good. However, its feedback is quite ambiguous in regard to the scope of the temporary exemption from ifrs 9. Iasb and ifrs ic documents that have been endorsed. Consolidation of special purpose entities spes under ifrs 10. Apr 12, 2017 the european financial reporting advisory group efrag has issued a positive statement on ifrs 16, the new lease accounting standard. Eu endorsement has been updated as of 30 june 2019 with the latest official efrag endorsement status report being available as of 28 march 2019. Changes in ias 27 result from the developments of ifrs 10 and ifrs 11. She said that efrag will aim to follow a fasttrack process similar to that for phase 1 of this project that will allow the endorsement process in the eu to. Therefore, like efrag, esma supports the iasbs initiative to provide in a staged approach a timely response to the increasing level of uncertainty about the possible financial reporting impacts of the longterm viability of some interest rate benchmarks. Esas write to efrag on the endorsement process of ifrs 17. Endorsement of the amendments to ifrs 10, ifrs 12 and ias 27 on investment entities introduction, background and conclusions attachment 1. Final endorsement of both pronouncements is now expected in the fourth quarter of 2017. Efrag endorsement status report 10 november 2017 published on.
Transition guidance amendments to ifrs 10, ifrs 11 and ifrs 12 the amendments and has submitted its endorsement advice letter and effects study report to the european commission. Efrag has determined that only a very small proportion of smes in europe are required or choose to apply ifrs. The eu has to endorse ifrs as they are in order to be fully compliant, i. Endorsement advice on 18 february 20 efrag issued its final endorsement advice and effects study report on investment entities amendments to ifrs 10, ifrs 12 and ias 27. Efrag draft endorsement advice ifrs fair value measurement dear mrs flores, i am writing on behalf of the autorite des normes comptables anc to express our views on the abovementioned draft endorsement advice. Eu endorsement of the ifrs 9 standard on financial. Particularly, like efrag, esma agrees with the proposals set out in the ed to amend ifrs 9. Ifrs in your pocket 2019 7 ifrs foundation the ifrs foundation is the organisation that develops ifrs standards for the public interest. Efrags endorsement advice on improvements to ifrs issued april 2009 2 for the reasons given above, efrag believes that it is in the european interest to adopt the amendments and, accordingly, efrag recommends their adoption.
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. Efrags reasoning is explained in the attached appendix basis for conclusions. Efrag concludes that the focus on predominant insurers meets the endorsement criteria but does not. On 12 october 2016 efrag published its preliminary consultation document regarding the endorsement of ifrs 16 leases, which included preliminary conclusions on whether ifrs 16 complies with requirements of article 3 of the las regulationl. This would require efrag to increase its proactive work, which would only be possible with increased resources. Amendments to ifrs 17 this letter is intended to contribute. Dec 31, 2018 5 ifrs adopted by the european union 31 december 2018 iasb eu only iasb standardinterpretationamendment eueffective date efrag endorsement advice arc vote expected adoption amendment to ifrs 3. Endorsement of financial reporting standards fact sheet currently iasb maintains contacts with the national standard setter in each member state. 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. 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.
Endorsement advice on ifrs 9 financial instruments efrag. Recognised for its thought leadership, efrags research contributes to the future shape of international financial reporting. Efrag european financial reporting advisory group arc accounting regulatory committee. 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. Efrag applying ifrs 9 financial instruments with ifrs 4. Within the foundation is the iasb, an independent body of accounting. Efrag has completed its due process regarding consolidated financial statements, joint arrangements and disclosure of interests in other entities. Accordingly, efrag has assessed that adopting ifrs 16 is conducive to the european public good and has issued its draft endorsement advice. Advisory group efrag and the vote by the accounting regulatory committee of representatives of eu member states arc are not sufficient to adopt a standard, an interpretation or an amendment. Ifrs adopted by the european union 30 june 2019 4 iasb eu iasb standardinterpretationamendment eueffective date efrag endorsement advice arc vote expected adoption amendment to ifrs 3. The research proactive activities have triggered the publication of research documents and discussion or position papers. Furthermore, efrag has received input on a number of issues from constituents relating. Fee comments on efrags assessments for endorsement of ifrs 10 consolidated financial statements, ifrs 11 joint arrangements, ifrs 12 disclosure of interests in other entities, ias 27 amended 2011 separate. On 15 october 2014 efrag issued an invitation to comment relating to the endorsement of ifrs 15 for use in the european union and european economic area.
It is also in the interests of large companies that approval of ifrs 16 is timely. Efrag cnc portugal 5 february 2019 state of play with iasbs big4 new standards status of major new ifrs standards 8 standard iasbs publication date 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. Endorsement of the amendments to ifrs 10, ifrs 12 and ias 27. Efrag report on implementation of ifrs 10, ifrs 11 and ifrs 12. Group fiwg during ten years, bringing the fiwgs expert advice to efrag teg during ifrs 9 development and endorse ment process. Summary note of the accounting standards advisory forum. 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. Invitation to comment on efrags assessments on investment. Efrag endorsement status report 23 january 2020 published on.
Ifrs 15 revenue from contracts with customers efrag. Efrag has prepared an effect study for ifrs 10 consolidated financial. European financial reporting advisory group wikipedia. 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. Efrag expects to issue a complete draft endorsement advice for an additional short consultation period in 2017. Draft endorsement advice and effects study report on investment entities amendments to ifrs 10, ifrs 12 and ias 27 invitation to comment on efrags assessments comments should be sent to. The european unions endorsement of amendments to international. The european financial reporting advisory group efrag has updated its endorsement status report to include sale or contribution of assets between an investor and its associate or joint venture amendments to ifrs 10 and ias 28, which was issued by the international accounting standards board iasb on 11 september 2014.
Endorsement of the amendments to ifrs 1 severe hyperinflation and removal of fixed dates for firsttime adopters introduction, background and conclusions attachment 1. Efrags draft comment letter on iasbs exposure draft. The research proactive activities have triggered the publication of research documents and. Endorsement of ifrs 10 consolidated financial statements ifrs. In this advice, efrag concluded that ifrs 9 meets the qualitative endorsement criteria of understandability, relevance, reliability and comparability required of the financial information needed for making economic decisions and assessing the. Invitation to comment on efrags assessments on interest rate. Efrag suggests quick endorsement of ifrs 9 amendments. Cruf letter to efrag re ifrs 16 leases endorsement advice. In other words, it is not contrary to the principle of true and fair view and it meets the criteria of understandability, relevance, reliability and comparability. As shown in exhibit 1, there are only 10 financial conglomerates electing for exemption from ifrs 9. Exposure draft ed20194 amendments to ifrs 17 exposure. Effects study prepared by the european financial reporting advisory group efrag attachment 2. Applying the consolidation exception amendments to ifrs 10, ifrs 12 and ias 28 the amendments. Efrag has established a technical expert group teg, max.
The efrag has issued a feedback report regarding fieldtests on implementing ifrs 10, ifrs 11 and related disclosures in ifrs 12. Abstractwe 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, which was probably the first example of a dedicated ifrs endorsement system. The european financial reporting advisory group is a private association established in 2001 with the encouragement of the european commission to serve the public interest. Webcast ifrs 17 simplified case study insurance europe. Actuaries play an important role in all aspects of insurance accounting. Over time efrag should develop into the primary european contact for the iasb. 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. The eu endorsement status report 12 september 20 efrag draft endorsement advice efrag endorsement advice arc vote when might endorsement be expected iasb effective date expected to be endorsed before the effective date. 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 of financial services entities subject to prudential capital requirements were not taken into.
We have also concluded that ifrs 16 is conducive to the european public good. Efrag s final endorsement advice recommended the amendments to ifrs 4 for endorsement efrag, 2017. Efrag has submitted its endorsement advice relating to interest rate benchmark reform the amendments to ifrs 9, ias 39 and ifrs 7 for use in the european union and european economic area. The european ifrs endorsement process in search of a. Efrag suggests quick endorsement of ifrs 9 amendments 18 oct 2017. It is available through the press release on the efrag website. Ifrs 16 leases ifrs 16 specifies how an ifrs reporter will recognise, measure, present and disclose leases. The following iasb documents are in the endorsement process as. Some standards and amendments are adopted by the eu with an effective date later than that established by the iasb. 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. The european endorsement process of international financial.
Definition of a business issued on 22 october 2018 1 january 2020 expected 2019 expected in 2019 expected in 2019. Oct 12, 2016 comments are requested by 8 december 2016. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the. The endorsement by the european commission of ifrs 15 revenue from contracts with customers including amendments to ifrs 15. 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. Efrag assesses that ifrs 16 is conducive to the european. Efrag understands that in some countries the insurance. Interest rate benchmark reform amendments to ifrs 9, ias 39 and ifrs 7 invitation to comment on efrags initial assessments other factors. Abstract the international financial reporting standards ifrs must. 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. In order to do that, 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.
Ifrs 16 leases draft endorsement advice note to constituents. Efrag has also updated its ifrs endorsement status report. Iasb ed20194 amendments to ifrs 17 efrag comment letter page 2 of 29 possible and, at the latest, before the end of june 2020 so as to enable timely endorsement within europe before the current expiry date of 1 january 2021. Efrags reasoning is set out in appendix 2of ifrs 10 efrags initial. Please go to the press release on the efrag website to access the consultation document and various supporting douments. The european financial reporting advisory group efrag has issued a positive statement on ifrs 16, the new lease accounting standard. We have carried out an extensive survey of our member associations to assess views and experiences relating to ifrs 17. Amendments to ifrs 9, ias 39 and ifrs 7 is now reflected in the endorsement status report.
Efragtegs opinions will whether the standard to be endorsed assess mplies with co. Comments on the draft endorsement advice are requested by march 2017. The information shown is our current best estimate of the latest date for publication or endorsement, assuming endorsement is to occur. Preparers will need time to implement the new requirements but. Ifrs 17 endorsement in europe 2 the actuarial association of europe represents c. Efrag supported the amendments and has concluded that they meet the technical criteria for endorsement as part of ifrs in the eu and eea. The european ifrs endorsement process in search of a single. On 28 may 2014 the iasb published the final standard. The three european supervisory authorities esa esma, eba and eiopa have today written a letter to the european financial reporting advisory group efrag regarding the endorsement process of the international financial reporting standard ifrs 17. The fieldtesting offers an opportunity to test the new requirements introduced by ifrs 11 and ifrs 12 and to provide valuable input to the eu endorsement process. Efrag ifrs 10 11 12 ias 27 ias 28 accountancy europe. Efrag has also updated its endorsement status report accordingly.
Standards ifrs 9 financial instruments issued on 12 november 2009 and subsequent amendments amendments to ifrs 9 and. Its member organisations are european stakeholders and national organisations having knowledge and interest in the development of ifrs and how they contribute to the efficiency of capital markets. The paper is the first in a planned series of three that are intended to provide simplified information on controversial areas of ifrs 17 to enable constituents to understand the issues and be in a position to comment on efrags draft endorsement advice currently expected in. The endorsement by the european commission of ifrs 9 financial instruments is now reflected in the efrag endorsement status report. The endorsement status report has been updated to reflect that arc voted in favour of endorsing ifrs 16 leases and applying ifrs 9 financial instruments with ifrs 4 insurance contracts.
6 284 435 1201 1137 887 323 736 966 703 536 1227 84 129 123 810 670 1352 1294 1046 1222 1011 1333 532 546 648 28 345 400 337 1059 1265 907 750 475 1174 1316 1416 172 968 1399 1454 1025 243