International GAAP 2021

Preface

The IASB noted in its 2018 analysis of the use of IFRS around the world that, other than China, India, Japan and the United States, the vast majority of the 166 jurisdictions they have researched require the use of IFRS for all or most domestic publicly accountable entities (listed companies and financial institutions) in their capital markets. Maintaining the current international alignment of accounting standards requires an ongoing commitment on the part of all jurisdictions involved, but the benefits of IFRS are clear when looking at the way in which the IASB was able to consider the impact of the coronavirus pandemic on financial reporting.

The coronavirus outbreak was first reported near the end of 2019, with the virus subsequently spreading worldwide. On 11 March 2020, the World Health Organisation classified the outbreak as a pandemic. While the coronavirus outbreak is first and foremost a public health concern, it has significantly impacted the world economy and, indirectly, financial reporting and the work of the IASB itself.

In response to the development, the IASB issued Amendments to IFRS 16 – Leases: Covid-19-Related Rent Concessions, deferred the effective date of Amendments to IAS 1 – Presentation of Financial Statements: Classification of Liabilities as Current or Non-current, decided to extend the consultation period of several consultation documents by three months, and decided to monitor the situation with a view to making further changes to its ...