Post-implementation Review of IFRS 9 - Impairment [ED]

Next steps:

The IASB is expected to publish a project summary in H2 2024

Last updated:

November 2023

Overview

The IASB decided to begin the Post-implementation Review of the IFRS 9, Financial Instruments, impairment requirements in the second half of 2022. In July 2022, the IASB discussed the project plan for the first phase of the Post-implementation Review (identifying matters to be examined).

On May 30, 2023, the IASB 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.

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.

For further details, see the project on the IASB website.

 

Other developments

September 2023

On September 26, 2023, the IASB staff updated the work plan to indicate that the Board plans to discuss the feedback it received in November 2023.

May 2023

On May 30, 2023, the IASB issued a request for information (RFI) seeking comments from stakeholders to respect of the impairment requirements in IFRS 9.  Comments are requested by September 27, 2023.

December 2022

On December 19, 2022, the IASB staff updated the work plan to indicate that the Board plans to issue a Request for Information in Q2/2023.  

July 2022

On July 25, 2022, the IASB staff up­dated the Work Plan to add a new project relating to a request for information in respect of the impairment requirements of IFRS 9, Financial Instruments.

 

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