EFRAG Endorsement Status Report - Update

​The endorsement by the European Commission of Amendments to IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions, Contingent Liabilities and Contingent Assets; and Annual Improvements 2018-2020 is now reflected in the Endorsement Status Report.

​The European Union has published a Commission Regulation endorsing the Amendments to IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions, Contingent Liabilities and Contingent Assets; and Annual Improvements 2018-2020. The Amendments are effective for annual periods beginning on or after 1 January 2022.

The Amendments deal with a range of topics but includes:

  • a clarification as to whether the unavoidable costs under a contract exceed the expected economic benefits;
  • require that proceeds from sale of goods before intended use to be recognised in profit or loss rather than deducting it from the cost of the item;
  • avoid unintended consequences with respect to business combinations; and
  • the annual improvements (2018-2020).

Link to the publication in the Official Journal of the European Union: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32021R1080&from=EN.

The updated EFRAG Endorsement Status Report can be downloaded below and under the menu 'Endorsement Status'