Dear fellow accounting standard-setters,
There are few things that are truly unprecedented in our lifetimes but living through a global pandemic is one of them. Whilst our work is vital to the wellbeing of the global economy, it’s the wellbeing of the many friends and colleagues within the accounting standard-setting community that comes first to mind. I wish you and your families continued good health during these difficult times.
We at the IASB are working in close cooperation with regulators and others around the world to monitor developments and to take targeted action where needed (for example, providing educational material on the application of IFRS 9 and IFRS 16). Moreover, we are mindful to minimise the burden on stakeholders, so have adjusted our workplan and some effective dates as needed.
At the same time, most of us are still working so not everything needs to stop. This newsletter highlights various aspects of our work that continue to move forward. In particular, we greatly appreciate your continued help and support providing high-quality responses to the various consultations that are ongoing.
We remain at your disposal.
Hans Hoogervorst
In this edition—IFRS Foundation response to covid-19
The IFRS Foundation shares global concerns about the impact of covid-19 and is monitoring developments guided by statements from public health authorities. The covid-19 pandemic represents an unprecedented global crisis, affecting not only our collective health and wellbeing, but the global economy. We are acting to support stakeholders during these difficult times.
This newsletter is a roundup of the covid-19-related work at the IFRS Foundation:
- Supporting consistent application of requirements in IFRS Standards
- Supplementary Board meeting
- New project timelines
- IFRS for SMEs Survey—Comprehensive Review of the IFRS for SMEs Standard
- How to get in contact with us in this difficult time
- IFRS Foundation Conferences in 2020
Please also see our website for the latest updates.
Supporting consistent application of requirements in IFRS Standards
Enhanced economic uncertainty arising from the covid-19 pandemic can raise questions regarding the application of IFRS Standards. The IFRS Interpretations Committee is, as always, available to support the understanding and consistent application of the Standards.
In response to queries about the work of the Board and about covid-19, we have prepared educational materials highlighting:
- how to consider the covid-19 pandemic when accounting for expected credit losses under IFRS 9 Financial Instruments. Find out more here.
- how to account for rent concessions granted as a result of the covid-19 pandemic when applying IFRS 16 Leases. Find out more here.
Supplementary Board meeting
The Board met on 17 April 2020 and decided to:
- propose narrow scope amendments to IFRS 16 to provide practical relief to lessees receiving rent concessions as a result of the covid-19 pandemic. Find out more in the new IFRS 16 and covid-19 project page.
- propose delaying the effective date of the amendments to IAS 1 to 2023, regarding the classification of liabilities as current or non-current. Find out more in the project page.
- adjust the Board’s work plan and extend the consultation period for some major consultations (see new project timelines in the table).
The Board papers for the 17 April 2020 meeting can be accessed here.
Despite challenges arising from the covid-19 pandemic, the Board and its technical staff continue to advance time-sensitive projects, including:
- Amendments to IFRS 17 Insurance Contracts; and
- IBOR Reform and its Effects on Financial Reporting—Phase II.
The Board has postponed to May 2020 the publication of several narrow-scope amendments to IFRS Standards originally planned for March and April 2020. The postponement aims to facilitate more efficient post-publication procedures by our stakeholders.
New project timelines
Open for comment documents
| NEW comment period deadline | Previous comment period deadline | |
|---|---|---|
| Exposure Draft: Covid-19-Related Rent Concessions (Proposed amendment to IFRS 16) | 8 May 2020 | - |
| Exposure Draft: General Presentation and Disclosures (Primary Financial Statements) | 30 September 2020 | 30 June 2020 |
| Request for Information: Comprehensive Review of the IFRS for SMEs Standard | 27 October 2020 | 27 July 2020 |
| Discussion Paper: Business Combinations—Disclosures, Goodwill and Impairment | 31 December 2020 | 15 September 2020 |
Forthcoming major consultations
| Project | Consultation document | New expected publication date | Previous expected publication date |
|---|---|---|---|
| Business Combinations under Common Controls | Discussion Paper | September 2020 | June 2020 |
| Rate-regulated Activities | Exposure Draft | October 2020 | August 2020 |
| Post-implementation Review of IFRS 10, IFRS 11 and IFRS 12 | Request for Information | December 2020 | August 2020 |
| 2020 Agenda Consultation | Request for Information | March 2021 | September 2020 |
| Disclosure Initiative—Targeted Standards-level Review of Disclosures | Exposure Draft | March 2021 | September 2020 |
| Management Commentary | Exposure Draft | December 2020 | December 2020 |
The Board's updated work plan can be accessed here.
IFRS for SMEs Survey—Comprehensive Review of the IFRS for SMEs Standard
As part of outreach for the Request for Information on the Comprehensive Review of the IFRS for SMEs Standard, a survey has been published to provide an alternative way to comment for stakeholders without the capacity or resources to submit a comment letter.
The following flow chart may assist stakeholders in deciding how to respond:
How to get in contact with us in this difficult time
The IFRS Foundation values safety and wellbeing of its staff. It decided to close its London office and all staff have been working from home since 16 March 2020.
We use the technology effectively to:
- support remote working;
- continue our commitment to transparency and due process—meetings still observable publicly; and
- continue to communicate with our stakeholders.
Board members and staff are working from home and can be reached via email or phone as usual. If you would like to get in touch, please email your regular contact person or call the switchboard (+44 (0)20 72466410) and the call will be passed on to the relevant staff members.
IFRS Foundation Conferences in 2020
Given the ongoing public health emergency related to coronavirus, the IFRS Foundation has decided to postpone its June 2020 Annual IFRS Foundation Conference.
Instead we will hold a joint IFRS Foundation and World Standard-setters conference 28–29 September 2020 with sessions on Monday being live streamed. Invitations with more information will be sent to the NSS.
