The European Financial Reporting Advisory Group (EFRAG) has formally requested that the International Accounting Standards Board (IASB) postpone the mandatory start date for IFRS 20 Regulatory Assets and Regulatory Liabilities.
The advisory body is seeking a one-year deferral, moving the effective date from 1 January 2029 to 1 January 2030. This request follows extensive outreach with industry preparers who expressed concerns regarding the complexity of the new requirements and the tightening window for implementation.
The proposed delay stems from several logistical and technical challenges identified by multinational entities. EFRAG noted that a revised publication schedule has effectively shortened the time companies have to prepare for the transition.
Furthermore, firms operating across multiple borders must navigate diverse and evolving regulatory landscapes, which complicates the reporting process. Stakeholders have also highlighted that critical elements of the Standard—specifically those relating to recognition constraints and the link between IFRS assets and regulatory capital—can only be fully addressed once the final text is released.
Despite the call for a broader postponement, EFRAG has clarified that early adoption of IFRS 20 will remain an option. This ensures that businesses ready to implement the Standard ahead of the new 2030 deadline can still do so.
By pushing back the mandatory date, the advisory group aims to provide sufficient breathing room for the global accounting community to ensure high-quality, accurate financial reporting across the regulated sectors affected by these changes.
