At its meeting on April 27, 2017, the IASB considered the IFRIC’s recommendation to propose an amendment to IFRS 9, Financial Instruments as part of the next Annual Improvements Cycle. The proposed amendment would clarify the requirements in the first sentence of paragraph B3.3.6 of IFRS 9. The amendment will say that when carrying out the '10 per cent' test for assessing whether to derecognize a financial liability, an entity includes only fees paid or received between the entity and the lender, including fees paid or received by either the entity or the lender on the other’s behalf. The Board tentatively decided:

1. to propose the amendment to IFRS 9 as part of the next Annual Improvements Cycle; and
2. to propose that an entity apply the amendment only to modifications or exchanges of financial liabilities that occur on or after the beginning of the annual reporting period in which the entity first applies the amendment.

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