|Printable version||E-mail this to a friend|
ESMA prepares for new International Financial Reporting Standard 9
The European Securities and Markets Authority (ESMA) yesterday published a Public Statement on Issues for consideration in implementing IFRS 9: Financial Instruments (the Statement) which highlights both the need for consistent, high-quality implementation of IFRS 9 and the need for transparency on its impact to users of financial statements.
IFRS 9 replaces major parts of International Accounting Standard (IAS) 39 Financial Instruments: Recognition and Measurement and contains a new impairment model based on expected credit losses (ECL). It also includes new requirements and guidance on the classification and measurement of financial assets and introduces new requirements to address the so-called ‘own credit’ risk issue.
The new standard is expected to have significant impacts on financial institutions and potentially non-financial entities which can benefit from the changes made to the hedge accounting requirements. Consequently, ESMA is of the view that all type of issuers need to carefully assess the impact of IFRS 9 in their particular circumstances when implementing it.
This Statement is part of ESMA’s work to promote consistent application of the new International Financial Reporting Standards (‘IFRS Standards’). ESMA’s annual Public Statement on European Common Enforcement Priorities (the Statement) for 2016 identifies the disclosures of the impact of the new standards on IFRS financial statements, which includes IFRS 9, as a priority for ESMA and national enforcers when they examine listed companies’ 2016 financial statements.
Next steps and other EU initiatives
The IFRS 9 effective date of application in the EU should be 1 January 2018. However, ESMA expects this Statement to be taken into account and reflected in the 2016 and 2017 annual financial statements and 2017 interim financial statements by firms, thereby enhancing the transparency and comparability of IFRS financial statements in the EU.
In parallel, the European Banking Authority has also yesterday published a Reporton results from the EBA impact assessment of IFRS 9, following its January 2016 impact assessment of the standard on a sample of approximately 50 institutions across the European Economic Area (EEA).
ESMA PREPARES FOR NEW INTERNATIONAL FINANCIAL REPORTING STANDARD 9
ISSUES FOR CONSIDERATION IN IMPLEMENTING IFRS 9: FINANCIAL INSTRUMENTS
Latest News from
Paradigm shift in the car industry23/02/2017 14:10:00
In its information report, The automotive industry on the brink of a new paradigm?, the EESC expects the GEAR 2030 High Level Groups and project teams to draw up an ambitious long-term industrial policy roadmap.
EU welcomes entry into force of the WTO Trade Facilitation Agreement23/02/2017 12:38:00
The Trade Facilitation Agreement (TFA) – the most significant multilateral trade deal concluded since the establishment of the World Trade Organisation (WTO) in 1995 – has entered into force.
Child-friendly justice: the child’s perspective22/02/2017 16:10:00
Children involved in court proceedings often feel scared, ignored, and ill-informed, as a new report from the European Union Agency for Fundamental Rights (FRA) shows. By asking children across different EU Member States about their experiences & views, this report shows how far we still have to go to make our justice systems child-friendly.
ESAs warn on money laundering &terrorist financing risks affecting the EU financial sector22/02/2017 14:25:00
The 3 European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) have published a Joint Opinion addressed to the EC on the risks of money laundering and terrorist financing affecting the EU's financial sector.
EC welcomes new rules to prevent tax avoidance through non-EU countries22/02/2017 13:10:00
The EC welcomes the agreement reached by ECOFIN on new rules to help prevent tax avoidance via non-EU countries, which will prohibit multinational companies from escaping corporate tax by exploiting differences between the tax systems of Member States and those of non-EU countries (so-called 'hybrid mismatches').