The January 2017 edition of the EFRAG Update, summarising public technical discussions held and decisions taken during that month, has been published and can be downloaded below.
EFRAG undertook outreach with a sample of European banks in order to understand their objectives and processes for managing their interest rate margin. This paper reflects the different practices these banks use in managing the interest rate risk of their structural balances within the banking book. The paper also summarises the theoretical background to these activities. EFRAG hopes that these findings will help the IASB in developing an improved approach to reporting the effect of dynamic risk management activities in the financial statements.
On 13 December, the EFRAG Board decided to appoint Silvia Dinova (Grant Thornton, Bulgaria) as a new member of EFRAG TEG. The Board also reappointed Geert Ewalts, Günther Gebhardt, Heinz Hense, Andrew Spooner and Ambrogio Virgilio as EFRAG TEG members for a new term.
EFRAG is consulting on both its assessment of Transfers of Investment Property (Amendments to IAS 40) against the technical criteria in the EU and on its assessment of whether Transfers of Investment Property (Amendments to IAS 40) is conducive to the European public good. Comments are requested by 20 March 2017.
EFRAG is consulting on its assessment of IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration against the endorsement criteria in the IAS Regulation, including the technical criteria and whether IFRIC 22 is conducive to the European public good. Comments are requested by 17 March 2017.
Following a Preliminary Consultation which closed last December, EFRAG has now issued its Draft Endorsement Advice on IFRS 16 Leases. EFRAG seeks the views of constituents, by 13 March 2017, in particular on its preliminary assessment of whether endorsing IFRS 16 would be conducive to the European Public Good. EFRAG also welcomes views on other relevant matters.
EFRAG announces that it will hold its EFRAG Board meeting on Tuesday 7 February 2017.
EFRAG has published a Summary Report on the joint investor outreach event in Milan on 29 November 2016 covering IFRS 16 Leases and the amendments to IFRS 4 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts.
EFRAG announces that it will hold its TEG meeting on Wednesday 25 and Thursday 26 January 2017.
EFRAG has decided to renew the membership of its Rate-regulated Activities Working Group (EFRAG RRAWG).
EFRAG has started a Research project to investigate possible improvements to the current requirements for accounting for pension plans under IFRS. EFRAG’s current focus is on plans that provide benefits linked to the return on specified assets. To provide expert advice on the project, EFRAG is setting up a pan-European Advisory Panel. If you are interested, please write to us at firstname.lastname@example.org by 20 February 2017.
Research activities will be increasingly important in the IASB and EFRAG work plans in the coming years. The academic community can provide valuable input on many aspects of these activities. EFRAG intends to strengthen its relationship with the academic community by setting up an Academic Panel on financial reporting and accounting and is therefore launching a call for nominations to the Panel. If you are interested, please write to us at email@example.com by 1 March 2017.