EFRAG Proposes Deferral of IFRS 20 Effective Date to 1 January 2030
Brussels, 25 March – EFRAG has requested that the International Accounting Standards Board defer the effective date of IFRS 20 Regulatory Assets and Regulatory Liabilities by a year to 1 January 2030.
During the outreach in preparation for the endorsement of IFRS 20, EFRAG learnt that some preparers— particularly multinational entities operating across multiple jurisdictions— may face challenges in applying the Standard by the currently designated effective date of 1 January 2029.
The proposed deferral is due to the following reasons:
The revised publication schedule has shortened the originally intended implementation timeline.
Multinational reporting entities require detailed knowledge of diverse and sometimes evolving regulatory regimes.
Certain key aspects of the Standard—including the recognition constraint, which depends on the relationship between IFRS assets and regulatory capital base items—will only be fully understood by stakeholders once the final wording is published.
EFRAG notes that early adoption of IFRS 20 will remain possible for entities that are able to apply the Standard sooner.
For further information, please contact Vincen Papa, Financial Reporting Director