The Journal is running a series of updates on IFRS, IAS, IFRIC and SIC. In this issue, Mr.

Mohammad Samsul Arefin ACMA (UK), CGMA, FCMA has taken the responsibility to update
the reflection on some latest pronouncements by IASB in their website.

Mr. Arefin has been working as Head of Internal Audit & Compliance in RAK Ceramics
(Bangladesh) Limited.

IFRS Update
The International Accounting Standards Board (Board) has issued narrow-scope amendments to IAS 1
Presentation of Financial Statements on 23rd January, 2020 to clarify how to classify debt and other liabilities
as current or non-current.
The amendments aim to promote consistency in applying the requirements by helping companies determine
whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should
be classified as current (due or potentially due to be settled within one year) or non-current.
The amendments include clarifying the classification requirements for debt a company might settle by converting
it into equity. The amendments clarify, not change, existing requirements, and so are not expected to affect
companies’ financial statements significantly.
However, they could result in companies reclassifying some liabilities from current to non-current, and vice versa;
this could affect a company’s loan covenants. Thus, to give companies time to prepare for the amendments.
The amendments are effective for years beginning on or after 1 January 2022, with earlier application permitted.
Topics discussed in monthly meeting:
The IASB Board discussed the following matters in their monthly meeting:
Meeting in January – 2020:
v Subsidiaries that are SMEs
v Business Combinations under Common Control
v Pensions Benefits that Depend on Asset Returns
v Implementation matters
v Disclosure Initiative—Targeted Standards-level Review of Disclosures
v Updating a Reference to the Conceptual Framework (Amendments to IFRS 3)

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ISSN 1817-5090, VOLUME-48, NUMBER-01, JANUARY-FEBRUARY 2020
 v Provisions
v Research programme update
v Rate-regulated Activities
v IBOR Reform and its Effects on Financial
Reporting—Phase 2
v Amendments to IFRS 17 Insurance Contracts
v IFRS Taxonomy Update—Interest Rate
Benchmark Reform (Amendments to IFRS 9,
IAS 39 and IFRS 7)
Meeting in February – 2020:
v Amendments to IFRS 17 Insurance Contracts
v IBOR Reform and the Effects on Financial
Reporting—Phase 2
v Disclosure Initiative—Targeted Standards-level
Review of Disclosures
v Disclosure Initiative—Accounting Policies
v Maintenance and consistent application
v Business Combinations under Common
Control
(The details of discussion are available in IASB website)
2019 Comprehensive Review of the IFRS for
SMEs Standard:
Current stage
The International Accounting Standards Board has
published a Request for Information (RFI) which is the
first step in its second comprehensive review of the
IFRS for SMEs Standard.
The objective of the RFI is to seek views on whether
and how aligning the IFRS for SMEs Standard with full
IFRS Standards could better serve users of financial
statements prepared applying the IFRS for SMEs
Standard, without causing undue cost and effort.
The IFRS for SMEs Standard is required or permitted
in more than 80 countries and is used by millions of
companies.
The Board confirmed it was satisfied with the
steps undertaken in developing the draft Request
for Information and that it has complied with the
applicable due process requirements.
The Board decided to allow 180 days for comment
on the Request for Information and instructed the
staff to publish the Request for Information for public
comment.
The Request for Information is open for comment
until 27 July 2020.
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ISSN 1817-5090, VOLUME-48, NUMBER-01, JANUARY-FEBRUARY 2020
Coronavirus update date
The IFRS Foundation shares global concerns about the
impact of coronavirus and is monitoring developments
guided by statements from public health authorities.
All public meetings hosted by the IFRS Foundation
are currently proceeding as planned, with digital
access being provided as usual for those who wish to
participate in or observe meetings remotely.
Standards effective from 1st January 2020:
IBOR reform Phase 1 amendments:
On 26 September 2019, the IASB issued 'Interest Rate
Benchmark Reform (Amendments to IFRS 9, IAS 39
and IFRS 7)' as a first reaction to the potential effects
the IBOR reform could have on financial reporting.
The amendments are effective for annual reporting
periods beginning on or after 1 January 2020.
New Materiality definition
On 31 October 2018, the IASB issued 'Definition of
Material (Amendments to IAS 1 and IAS 8)' to clarify
the definition of ‘material’ and to align the definition
used in the Conceptual Framework and the standards
themselves. The amendments are effective annual
reporting periods beginning on or after 1 January
2020.
Updated references to the Conceptual Framework
Together with the revised 'Conceptual Framework'
published in March 2018, the IASB also issued
'Amendments to References to the Conceptual
Framework in IFRS Standards'. The amendments are
effective for annual periods beginning on or after 1
January 2020.
IFRS 3 amendments
On 22 October 2018, the IASB issued 'Definition of a
Business (Amendments to IFRS 3)' aimed at resolving
the difficulties that arise when an entity determines
whether it has acquired a business or a group of
assets. The amendments are effective for business
combinations for which the acquisition date is on or
after the beginning of the first annual reporting period
beginning on or after 1 January 2020.
Source of information:
IASB website
IASplus.com