The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has actually released a Public Declaration on some accounting ramifications of the financial assistance and relief treatments embraced by EU Member States in reaction to the COVID-19 break out. The procedures include moratoria on repayment of loans and have an influence on the calculation of expected credit losses in accordance with IFRS 9.
In view of the upcoming regular details to be released by European companies, the Statement provides guidance to companies and auditors on the application of IFRS 9 Financial Instruments, particularly as associates with the calculation of expected credit losses and associated disclosure requirements.The European Banking Authority (EBA) has really likewise launched an associated Statement worrying the prudential framework and accounting implications of COVID-19. The 2 Statements correspond as regards monetary reporting. Source