Each quarter, we provide a summary of newly effective and forthcoming standards as well as other accounting and financial reporting developments. This edition covers current developments as of June 30, 2019.
As the implementation of IFRS 17 Insurance Contracts by preparers is underway, the IASB published an exposure draft Amendments to IFRS 17 that proposes to defer the mandatory effective date of IFRS 17 to January 1, 2022 and proposes amendments in seven areas to address implementation challenges raised by stakeholders.
Not all the details are yet known on how or exactly when the unprecedented IBOR reforms will be implemented, but these changes seem inevitable. Standard setters are currently considering the effects of these reforms on existing financial reporting requirements. The IASB published an exposure draft Interest Rate Benchmark Reform that proposes amendments to both IFRS 9 Financial Instruments and IAS 39 Financial Instruments: Recognition and Measurement to provide limited relief to preparers for hedges of interest rate risk that are impacted by IBOR reforms.
The use of cryptoassets is on the rise, raising accounting questions and challenges. In this quarter, IFRIC finalized its agenda decision on 'Holdings of Cryptocurrencies' which sheds light on accounting for holdings of certain cryptoassets.
Questions are often raised in practice about how a company implements IFRIC agenda decisions. An exposure draft Proposed Amendments to the IFRS Foundation Due Process Handbook was issued, which includes proposals to clarify the role and implementation timing of IFRIC agenda decisions.
A number of new requirements are effective from January 1, 2019. Further information on the new requirements effective in 2019 are provided in the section 'Newly effective requirements in 2019'.