IASB publishes second request for information on the post-implementation review of IFRS 9
May 30, 2023
On May 30, 2023, the International Accounting Standards Board (IASB) has issued a request for information (RFI) seeking comments from stakeholders to identify whether the impairment requirements in IFRS 9, Financial Instruments, provide information that is useful to users of financial statements; whether there are requirements that are difficult to implement and may prevent the consistent implementation of the standard; and whether unexpected costs have arisen in connection with applying or enforcing the standard.
The IASB has decided that while reviewing IFRS 9 in its entirety, it will do so in three parts:
- In 2022, the IASB completed its review of the classification and measurement requirements, concluding that these requirements are working as intended.
- With the request for information published today, the IASB is seeking feedback on the impairment requirements.
- The IASB will seek feedback separately on the hedge accounting requirements.
After discussing feedback from outreach, the Board decided in February 2023 to examine further:
- the general approach to recognition of expected credit losses (ECL),
- significant increases in credit risk,
- the measurement of ECL,
- the prevalence of particular questions from entities on how to apply the ECL requirements to purchased or originated credit-impaired financial assets,
- the simplified approach to recognition of ECL for trade receivables, contract assets and lease receivables,
- the accounting for loan commitments, collateral and other credit enhancements held, and issued financial guarantee contracts that are in scope of IFRS 9,
- the application of the ECL requirements alongside other requirements in IFRS 9 or in other IFRS Accounting Standards,
- the effects of transition reliefs provided by the IASB and the balance between reducing costs for preparers of financial statements and providing useful information to users of financial statements,
- and the disclosure requirements for credit risk in IFRS 7.
Comments on the RFI are requested by September 27, 2023.
Review the press release and the Request for Information on the IASB website.
