​Each quarter, we provide a summary of newly effective and forthcoming standards as well as other significant accounting and financial reporting developments. This edition covers current developments in the quarter ended on December 31, 2020.

In November 2020 the International Accounting Standards Board (IASB) published the discussion paper Business Combinations under Common Control and the exposure draft Lease Liability in a Sale and Leaseback. Companies are encouraged to comment on the proposals.

In addition, in December 2020 the IFRS Interpretations Committee (IFRIC) issued a tentative agenda decision clarifying the IASB’s amendments to IAS 1 Presentation of Financial Statements1 on the classification of debt with future conditions as current or non-current (the amendments were issued in January 2020 and are effective in 2023). The amendments will cause a significant change in practice, and consequently we urge companies to take this opportunity to give their feedback to the IFRIC.

Most companies are likely to continue to be impacted by the COVID-19 coronavirus pandemic. 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. Our latest IFRS Today podcast offers clear and concise points to consider on reflecting the impact of COVID-19 in year-end financial statements. In addition, our COVID-19 supplement to our Illustrative disclosures and Illustrative disclosures for banks illustrate disclosure examples related to accounting issues arising from the COVID-19 coronavirus pandemic.

There are certain new requirements that are effective in 2020. Further information on these is provided in the section ‘Requirements effective in 2020’.