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Financial instruments — Limited reconsideration of IFRS 9

Background

At the November 2011 IASB meeting, the staff recommended that the Board consider making improvements to IFRS 9 Financial Instruments, in particular, to consider the interaction with the insurance contracts project.

The project may also enable the IASB to consider application issues identified by entities who have, or are in the process of, early adopting IFRS 9 and to consider the FASB's classification and measurement model.

However, any changes are expected to be as targeted as possible to minimise potential disruption to those who have already applied or are close to applying IFRS 9 and in order to assist in timely completion of the project.

 

Current status of the project

At the January 2012 IASB meeting, the IASB and FASB agreed to work together to improve the alignment of their respective financial instrument classification and measurement standards.  The IASB published Exposure Draft ED/2012/4 Classification and Measurement: Limited Amendments to IFRS 9 (proposed amendments to IFRS 9 (2010)) on 28 November 2012, with a comment deadline of 28 March 2013. Finalised amendments are expected in the second quarter of 2014.

 

Project milestones

DateDevelopmentComments
November 2011 Project tentatively added to the agenda
28 November 2012 ED/2012/4 Classification and Measurement: Limited Amendments to IFRS 9 (proposed amendments to IFRS 9 (2010)) published
Comment deadline 28 March 2013

Related Discussions

  • IASB activities update

  • Feb 24, 2014

  • IASB Chairman Hans Hoogervorst and others from the IASB provided an update on recent IASB activities.

  • Financial instruments — Limited reconsideration of IFRS 9 (classification and measurement) (IASB-FASB)

  • Sep 18, 2013

  • The IASB and FASB discussed (1) definition of 'principal' (2) concerns over 'de minimus' features (3) components of interest (4) the meaning of 'time value of money' (5) the impact of contingent features, including those that are not solely principal and interest (6) the nature of the contingent trigger event (7) prepayment features resulting in cash flows that are not solely principal and interest

  • IASB projects review

  • Jun 10, 2013

  • Sue Lloyd and Alan Teixeira provided the IFRS Advisory Council with a review the current work of the IASB.

  • Limited amendments to IFRS 9

  • Feb 26, 2013

  • The IASB staff made a presentation on the recently-issued ED proposing limited amendments to IFRS 9, noting its intent to improve the interaction with the insurance contracts project, to address a narrow range of application issues and to reduce key differences with the FASB’s standards.

  • Financial Instruments — Classification and Measurement

  • Jul 18, 2012

  • The Boards discussed the accounting for reclassifications of financial instruments between the fair value through profit or loss (FVTPL), fair value through other comprehensive income (FVTOCI) and amortised cost measurement categories.

  • Financial instruments — Limited reconsideration of IFRS 9 (classification and measurement)

  • May 21, 2012

  • The IASB discussed whether to introduce fair value through other comprehensive income (FV-OCI) as a measurement category for eligible debt financial instruments. The IASB and FASB subsequently jointly discussed when eligible debt instruments should be measured at FV-OCI on the basis of the business model within which they are held. The boards also discussed whether to require reclassifications of financial assets when the business model changes.

  • Insurance contracts

  • Mar 20, 2012

  • The IASB held an education session to discuss the possible use of other comprehensive income (OCI) for presenting certain changes in an insurance liability. As this was an education session, the Board was not asked to make any tentative decisions.

  • Financial instruments — Classification and measurement

  • Feb 28, 2012

  • The IASB and FASB began their joint deliberations on financial instrument classification and measurement in an attempt to more closely align IFRS 9 and the FASB's tentative decisions to date. The discussions focused on the cash flow characteristics assessment; this was followed by an education session discussing the business activity criterion under each approach.

  • Financial instruments — Classification and measurement

  • Jan 27, 2012

  • The IASB and FASB met to discuss their respective projects on classification and measurement of financial instruments. Late in 2011, the IASB had agreed to reopen IFRS 9 to address certain issues, one of which was the possibility for further convergence with US GAAP.

  • Report of the IASB Chairman

  • Jan 12, 2012

  • Hans Hoogervorst noted that he had provided a detailed written report with supporting appendices. He limited his remarks to highlighting some issues.

  • Financial instruments — Limited reconsideration of IFRS 9 (classification and measurement)

  • Dec 13, 2011

  • During the November 2011 IASB meeting, the Board decided to reopen IFRS 9 to further consider 1) certain specific issues identified as entities have implemented IFRS 9, 2) the interaction of decisions made in the insurance project with the classification and measurement of assets managed to meet insurance liabilities and 3) whether further convergence could be achieved with the FASB and their financial instrument classification and measurement project.

  • IFRS 9 – Targeted improvements

  • Nov 15, 2011

  • The IASB discussed whether to initiate a review of IFRS 9 and also discussed the effective date of revised disclosure requirements in light of the IASB's decision to defer the application of IFRS 9.

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