Deloitte comment letter on proposed limited amendments to IFRS 9 (ED/2012/4)

Published on: 29 Mar, 2013

Deloitte Touche Tohmatsu Limited is pleased to respond to the International Accounting Standards Board’s (‘the IASB’s’ or ‘the Board’s’) Exposure Draft ED/2012/4 Classification and Measurement: Limited Amendments to IFRS 9.

We welcome the Board’s initiative to address practical issues in the application of the current version of IFRS 9 Financial Instruments and to consider the interaction with its tentative approach to accounting for insurance contracts. In addition, we welcome the continued efforts of both the IASB and the US Financial Accounting Standards Board (FASB) to seek convergence in this important area of accounting and urge both boards to reconcile any remaining differences in their respective classification and measurement models as far as possible.

We support the objective of the proposed amendments and the introduction of a third business model as it better captures the spectrum of business models that exist in reality. However, we believe that the third business model would be better defined as a residual category for assets that do not meet the conditions to be considered as held to collect contractual cash flows or as held to sell. This should facilitate the production of simpler, clearer application guidance. Additionally, we encourage the IASB and the FASB to reconcile the differences that currently exist between their proposed application guidance in this area as this would enhance international comparability of financial statements.

The full comment letter can be downloaded below.


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