IFRS 9 — Prepayment features with negative compensation


This project will look into whether a narrow-scope exception could be added to IFRS 9 Financial Instruments to allow instruments with symmetric prepayment options to qualify for amortised cost or fair value through other comprehensive income measurement because they would otherwise fail the SPPI condition.

The project timeline the Board envisions is very tight:

  • February 2017 — Board finishes deliberations of the proposed exception, including the comment period, due process steps and permission to ballot, and proceed with drafting those amendments in an expeditious manner
  • April 2017 — Publish an exposure draft by the end of the month with a comment period of only 30 days
  • May 2017 — Comment period ends
  • June-July 2017 — Board redeliberations
  • October 2017 — Issue final amendment by the end of the month

The Board argues that the amendment is urgent and limited and that it should have the same effective date as IFRS 9 (1 January 2018).


Current status of the project

This project has been completed. The IASB issued Prepayment Features with Negative Compensation (Amendments to IFRS 9) on 12 October 2017.


Project milestones

Date Development Comments
January 2017 Formally added to the IASB agenda
21 April 2017 Exposure draft ED/2017/3 Prepayment Features with Negative Compensation (Proposed amendments to IFRS 9) published Comments requested by 24 May 2017
12 October 2017 Prepayment Features with Negative Compensation (Amendments to IFRS 9) issued Effective from 1 January 2019, early application permitted


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