EU adopted amendments to IAS 36 and IAS 39

The European Union has published Commission Regulations endorsing 'Novation of Derivatives and Continuation of Hedge Accounting (Amendments to IAS 39)' and 'Recoverable Amount Disclosures for Non-Financial Assets (Amendments to IAS 36)'.

The European Union has published Commission Regulations endorsing 'Novation of Derivatives and Continuation of Hedge Accounting (Amendments to IAS 39)' and 'Recoverable Amount Disclosures for Non-Financial Assets (Amendments to IAS 36)'.

The European Union adopts the amendments made by the International Accounting Standards Board (IASB):

  • eliminating the need to discontinue hedge accounting if a hedging derivative is novated, provided certain criteria are met.
  • clarifying that the scope of the disclosures of information about the recoverable amount of assets, where that amount is based on fair value less costs of disposal, is limited to impaired assets.

The European effective dates are the same ones to which the IASB has made the amendments (1 January 2014).

The European Financial Reporting Advisory Group (EFRAG) has updated its endorsement status report to reflect the endorsement by the European Commission of the amendments.

The endorsement status report, dated 20 December 2013, is available here.