ESMA submits questions related to IFRS 9 and IAS 20 to IFRIC

The European Securities and Markets Authority (ESMA) has submitted questions related to the third series of the European Central Bank’s (ECB) Targeted Longer-Term Refinancing Operations (TLTRO III) to IFRS Interpretations Committee.

ESMA has requested IFRIC to consider clarifying the applicable requirements related to

• accounting for the transactions according to requirements of IFRS 9 or IAS 20;
• use of discrete or “blended” effective interest rates to calculate the interest expense; and
• accounting treatment of the changes in estimates of payments due to revised assessment of meeting the eligibility criteria upon application of IFRS 9.

ESMA’s submission to IFRIC may be accessed here.