The European Union’s Endorsement of Amendments to International Financial Reporting Standard 4: An Unprecedented ‘Top Up’

In: Journal of Corporate Accounting & Finance, early view: DOI/10.1002/jcaf.22436 (December 9, 2019)

7 Pages Posted: 9 Feb 2020

See all articles by Michael Dobler

Michael Dobler

Dresden University of Technology - Faculty of Economics and Business Management

Date Written: December 9, 2019

Abstract

The International Financial Reporting Standards (IFRS) must pass a formal endorsement process to become binding for companies based in the European Union (EU). In an unparalleled instance, the EU recently endorsed “Amendments to IFRS 4” with a modification labeled as “top up” by allowing European financial conglomerates to defer the application of IFRS 9 “Financial Instruments” in their insurance sectors. This paper explains the background of this decision, identifies the “top up” as an unprecedented case of carve‐in, and discusses the key implications for regulation and practice.

Keywords: carve-in, European Union (EU), financial conglomerate, financial instruments, insurance, international accounting, International Financial Reporting Standards (IFRS), top up

JEL Classification: M41, M48, G22, G23

Suggested Citation

Dobler, Michael, The European Union’s Endorsement of Amendments to International Financial Reporting Standard 4: An Unprecedented ‘Top Up’ (December 9, 2019). In: Journal of Corporate Accounting & Finance, early view: DOI/10.1002/jcaf.22436 (December 9, 2019). Available at SSRN: https://ssrn.com/abstract=3501653

Michael Dobler (Contact Author)

Dresden University of Technology - Faculty of Economics and Business Management ( email )

Helmhotzstr. 10
Dresden, D-01062
Germany

HOME PAGE: http://tu-dresden.de/bu/wirtschaft/wus

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