In contrast to the three previous issues, Beyond the GAAP is back to its traditional format this month, with no COVID-19 supplement. Things are getting back to normal as regards accountancy news, although it is expected that further statements will be published locally for instance on the consequences of the crisis on accounting for State-guaranteed loans in France.
In this issue, Beyond the GAAP sets out the most recent agenda decisions published by the IFRS Interpretations Committee. While the final agenda decisions reached in June are unlikely to have any major impact on preparers, the ongoing discussions on reverse factoring constitute a trickier issue. However, at this stage of the due process, the Committee is not planning to amend existing IFRSs. Stakeholders have until 30 September to respond to this tentative agenda decision.
In the more immediate future, preparers are likely to be devoting their energies to the interim financial statements, which may be heavily impacted by the health and economic crisis. It seems unlikely that the amendment to IFRS 16 on rent concessions granted to lessees will be endorsed by the EU before the date when the financial statements are authorised for issue. Under these circumstances, if an entity would like to make use of the practical expedient offered by the IASB, it will be up to the auditors to assess materiality in the context of its financial statements.
Beyond the GAAP no.145 - June 2020