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, 2020.
Most companies are likely to be impacted by the COVID-19 coronavirus pandemic, either directly or indirectly, and the increased economic uncertainty and risk may have significant financial reporting implications. Our COVID-19 financial reporting resource centre provides regularly updated information on potential accounting and disclosure implications for your company, focusing on the financial reporting impacts for 2020 period ends.
In response to COVID-19 the International Accounting Standards Board (IASB) issued amendments to IFRS 16 Leases to simplify lessees' accounting of rent concessions by allowing them not to account for rent concessions as lease modifications if they arise as a direct consequence of COVID-19. In addition, the IASB deferred the effective date of Classification of Liabilities as Current or Non-current (Amendments to IAS 1) and decided to extend the consultation period for the exposure draft "General Presentation and Disclosures" and the discussion paper "Business Combinations – Disclosures, Goodwill and Impairment".
In this quarter, the IASB discussed some of the feedback on the exposure draft it had published in April 2020 for the project "Interbank Offer Rate (IBOR) Reform and Its Effects on Financial Reporting – Phase 2". It plans to publish the final amendments soon after discussing the remaining feedback in July 2020.
After several months of redeliberations, the IASB published the final amendments to IFRS 17 Insurance Contracts. Amongst other changes and clarifications, it deferred the effective date of IFRS 17 to January 1, 2023.
In this quarter, the IASB also published narrow-scope amendments to IFRS 3 Business Combinations, IAS 16 Property, Plant and Equipment and IAS 37 Provisions, Contingent Liabilities and Contingent Assets as well as Annual Improvements 2018-2020 for IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16.
There are certain new requirements that are effective in 2020. Further information on these is provided in the section 'Requirements effective in 2020'.