IASB Begins First Phase of Post-Implementation Review of IFRS 9

When developing IFRS 9, IASB divided its project into three phases—classification and measurement, impairment, and hedge accounting. At the October 2020 meeting, IASB decided to also divide the post-implementation review of the standard into phases, starting with the review of the classification and measurement requirements. In the first stage, IASB developed a single principle-based approach to the classification and measurement of financial assets. IASB also addressed the so-called "own credit" issue by requiring that the effects of changes in the credit risk of financial liabilities designated under the fair value option are presented in other comprehensive income. The impairment requirements and hedge accounting requirements will be reviewed later, when more information is available about the application and effects of those requirements. 

IASB is required to conduct a Post-implementation Review of each new IFRS Standard or major amendment. This review is an opportunity to assess the effects of a new standard or major amendment to a standard on investors, preparers, and auditors, following its issuance and application.

Keywords: International, Banking, IFRS 9, Post Implementation Review, Financial Instruments, IASB