Post-implementation review of IFRS 9 — Classification and measurement

Date recorded:

Request for Information (Agenda Paper 3)

In October 2020, the Board started a post-implementation review (PIR) of IFRS 9 and in December 2020, set its objectives for the PIR. From January to July 2021 the Board asked stakeholders what matters should be examined within the context of the objectives of the PIR.

The staff asked the Board in this meeting to approve the publication of the Request for Information (RFI), which if approved will be published in the last week of September 2021.

The Board has decided the topics to examine further, which at a high level include:

  • The business model assessment for financial assets
  • The contractual cash flow characteristics assessment for financial assets
  • The option for equity instruments to present fair value changes in other comprehensive income
  • The presentation in other comprehensive income of changes in fair value resulting from changes in own credit risk for financial liabilities designated at fair value through profit or loss
  • Modification to contractual cash flows
  • The transition to IFRS 9
  • Effective interest method for financial instruments measured at amortised cost or at fair value through other comprehensive income
  • Any other information on IFRS 9 classification and measurement requirements

The staff asked the Board if they agree with a 120-day comment period for the RFI.

Board Discussion

One Board member highlighted that the comment period will finish at the end of January which is at the heart of many companies financial close. The staff agreed but noted that every jurisdiction and company will have a different busy period.

The Board agreed that a 4-month period is a sufficient period of time to draft a comment letter and in addition there are other methods of providing feedback to the Board, such as outreach meetings. It was agreed that outreach and awareness raising meetings would take place early in the comment period, to allow respondents enough time to provide feedback. 

Board Decision

All 12 Board members supported the publication of the RFI and the 120-day comment period.

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