22 December 2010
CEBS published its revised guidelines on financial reporting (FINREP rev2) on 15 December 2009, with an implementation date of 1 January 2012.
FINREP rev2 incorporated changes to IFRS, which were agreed in October 2009 and CEBS had envisaged that further changes to IAS/IFRSs would be taken into account, in due course, before starting implementing the revised FINREP framework. In particular, the IASB project on IAS 39 replacement and the proposal on IAS 1 that were scheduled to be agreed in 2010 were envisaged to be incorporated into the framework.
However, the IASB has, so far, only finalised those aspects of the project to replace IAS 39 Financial Instruments dealing with classification and measurement of financial instruments in IFRS 9 (phase I of the revision process). Final decisions on impairment (phase II) and hedge accounting (phase III) are currently expected in the first half of 2011. The final IFRS 9 will also be subject to an endorsement process at EU level.
Given these changes, CEBS suggests that countries that intend to implement the FINREP package for the first time before 1 January 2013 use the FINREP rev2 guidelines on an interim basis.
Irrespective of these developments, CEBS is continuing its efforts in revising the FINREP framework to take into account the increasing need for harmonised supervisory reporting, not least with a view to allowing the future EBA to carry out its tasks.
As part of this revision, CEBS is closely monitoring and commenting on expected IAS/IFRS changes and will in due course consider how to incorporate relevant changes into the FINREP framework. In addition, the outcome of the IASB's request for views on effective dates and transition methods may have an impact on the timeline and implementation of the IFRS changes and on how to fit them into the FINREP framework.
Against this background, CEBS has decided that a new revised framework (FINREP rev3) will be published, by the new European banking Authority (EBA) by the end of 2011 with an application date of 1 January 2013. This revision will, to the greatest extent possible, take into account all relevant IFRS amendments with the same application date, provided they are endorsed at EU level.