UKEB final comment letter on the IASB's RFI on its Post-implementation Review of IFRS 9

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12 Feb 2022

The UK Endorsement Board (UKEB) has published its final comment letter and feedback statement in response to the International Accounting Standard Board’s (IASB's) Request for Information (RFI) on its Post-implementation Review of IFRS 9 'Financial Instruments - Classification and Measurement'.

In September 2021, the IASB issued a RFI seeking comments from stakeholders to identify whether the classification and measurement 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.

In its final comment letter, which has been informed after in-house research, a stakeholder survey and feedback received during stakeholder roundtables and interviews, the UKEB: 

  • ob­serves that the IFRS 9 clas­si­fic­a­tion and meas­ure­ment re­quire­ments gen­er­ally work as in­ten­ded and rep­res­ent an im­prove­ment to the pre­vi­ous rule-based re­quire­ments in IAS 39 Fin­an­cial In­stru­ments: Re­cog­ni­tion and Meas­ure­ment.
  • focuses on three significant areas where it con­siders im­prove­ment and po­ten­tially stand­ard-set­ting activ­ity are re­quired.  Two of the areas relate to the ap­plic­a­tion of the con­trac­tual cash flow char­ac­ter­ist­ics as­sess­ment for fin­an­cial assets while the third area relates to the ef­fect­ive in­terest rate meth­od­o­logy.
  • sug­gests that the IASB ad­dresses the issue con­sidered in the recent IFRS In­ter­pret­a­tions Com­mit­tee tent­at­ive agenda de­cision Cash Re­ceived via Elec­tronic Trans­fer as Set­tle­ment for a Fin­an­cial asset as part of this Post-im­ple­ment­a­tion Review.

The final comment letter and the feedback statement are avail­able on the UKEB website.

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