IASB Issues Update on Post-Implementation Review of IFRS 9

The Post-implementation Review of IFRS 9—Classification and Measurement aimed to assess whether the effects of the application of new requirements for users of financial statements, preparers, auditors and regulators were as intended by IASB intended when it developed the requirements. The report findings show that the requirements set out in IFRS 9 are working as intended and provide useful information to the users of financial statements. In response to stakeholder feedback, IASB identified areas for research and initiated a standard-setting project focused on a company’s assessment of the contractual cash flow characteristics of financial assets with ESG-linked features and on electronic cash transfers as settlement of a financial asset or liability. IASB expects to publish an exposure draft setting out proposed amendments in the first quarter of 2023. IASB also decided to add a project to its research pipeline to explore whether it can clarify requirements for applying the effective interest method to financial instruments measured at amortized cost and requirements for modifications of financial instruments. IASB will consider any potential findings from the Post-implementation Review of IFRS 9—Impairment, which is expected to be published in the first half of 2023, when deciding on the scope of, and before starting work on, the project.

Keywords: International, Banking, IFRS 9, Financial Instruments, Post-Implementation Review, Hedge Accounting, ESG, Disclosures, IASB