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Deloitte comment letter on IASB ED/2012/4 - Classification and Measurement: Limited Amendments to IFRS 9

Published on: Mar 29, 2013

Deloitte Touche Tohmatsu Limited is pleased to respond to the IASB'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 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 much as possible.

We support the objective of the proposed amendments and the introduction of a third business model since 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. In addition, we encourage the IASB and the FASB to reconcile the differences that currently exist between their proposed application guidance in this area since this would enhance international comparability of financial statements.

The full comment letter can be downloaded below.


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