Beyond the GAAP no.157 - July & August 2021

After a lot of debate across Europe, the ARC finally decided to permit exemptions to the annual cohorts’ rule under certain circumstances. This option is temporary, as the European Commission is planning to re-examine the issue upon the IFRS 17 post implementation review. It is likely to be well received, even though most companies have largely started their transition preparations given that the standard is mandatory from 1 January 2023.

It should also be noted that the EU has just adopted the IASB’s second amendment to IFRS 16 on rent concessions beyond 30 June 2021. This is a bit late relative to when most listed companies publish their interim financial statements, but some may nonetheless be able to make use of the practical expedient permitted by the amendment.